Rural Scotland faces drink drought as crackdown forces up licence fees

Published on Friday 17 October 2008 21:13

PUBS are being forced out of business and hundreds of rural shops and tourist attractions are having to stop selling alcohol in an "attack on business" as new licence costs come into force across Scotland, The Scotsman can reveal.

In the latest Scottish Government crackdown on the country's booze culture, about 17,000 premises are being hit with soaring bills for alcohol sales licences.

Most are paying several thousand pounds to comply with new regulations that come into force next year – compared with 172 under the old licensing system. Pub trade insiders say hundreds of bars are likely to close.

And The Scotsman can also reveal that justice secretary Kenny MacAskill's crusade against binge drinking is hitting rural communities, where scores of shops are ceasing to sell alcohol because they cannot afford a new licence.

Under rules brought in by the previous Labour administration and the present SNP government, all licensed premises have to reapply for a licence that had cost 172 for three years. Local authorities can now charge as much 2,000 depending on the size of the business.

The Scotsman has been told most applicants also have to hire architects – at a cost of between 1,000 and 4,000 – to draw up detailed layout plans to submit to the local licensing board.

The manager of Glamis Castle, who says the rules have cost the business about 8,000, accused ministers of burdening the tourism industry with sky-high costs and unnecessary red tape.

David Adams said the famous castle was having to curtail its sale of malt whiskies to tourists, because the new rules required him to designate specific, limited areas where alcohol could be displayed and sold.

He added: "The Scottish Government wants to close down lots of pubs as there is an over-provision in some areas. But they are focusing on one sector without considering what's happening to the rest of the industry."

Pubs, bars, hotels, shops and tourist attractions that want to sell alcohol have until January to lodge their applications under regulations in the Licensing Act (Scotland) 2005. Industry insiders say applications are running between 20 and 40 per cent below the expected level.

The Licensing Act was intended to crack down on areas deemed to have too many pubs, such as the Glasgow and Edinburgh city centres. But scores of rural shops have also been forced to stop selling drink, and some top tourist attractions are having to curtail the sale of whisky miniatures and other gifts.

Paul Waterson, chief executive of the Scottish Licensed Trade Association, said: "This is simply an attack on business. It's something we don't need on the back of the smoking ban, which has put about 400 premises out of business."

A spokeswoman for the Scottish Government said the system was based on preventing crime and disorder, securing public safety, preventing public nuisance, protecting and improving public health and protecting children from harm.

She said Mr MacAskill would ask the Accounts Commission to review the fees after transition.

'It could put me out of business'

ONE of Glasgow's best known publicans, Alistair Don has run the Doublet, in the West End, since the early 1970s.

He reckons the cost of acquiring a new licence has run to about 3,000. And that's only to allow him to trade until 1 September, 2009, when every outlet that sells alcohol must be certified under the new regime. He paid 80 or so for a one-year licence under the old system.

"I had to get an architect to draw up the operating plan," he said. "Then there's lawyers' fees and the cost of the licence application itself. I'm looking at shelling out about 3,000."

That's not the end of his woes. Building control officials have said he must install an extra women's toilet. "They say the pub is fit to hold 60 people, but they're hardly likely to be all women. I already have two female toilets and we've never had any problem. There is simply no space for another toilet."

The worst-case scenario, he says, would see the licensing board deny him a licence because he can't fit the toilet, and so force him out of business. "They're quoted as saying they don't want to strip people of their livelihoods. But this is a heap of nonsense."

'We have to put our guests first'

KEN and Christine Lawson have run the Spindrift guesthouse in Anstruther, Fife, for eight years.

It is a reasonably modest outfit with nine bedrooms. They operate an "honesty box" bar for guests, who can also buy a bottle of wine to enjoy over dinner.

The couple thought long and hard about withdrawing that service after discovering they would have to pay an architect 1,500 to produce the necessary plans for the licence application, along with their 200 application fee and a further 125 for training at Carnegie College in Dunfermline to become a fit licence-holder.

Mr Lawson said: "The Scottish Government claims you do not have to get an architect to provide the plans, but it has to be done exactly on a scale of one to 100. You have to mark the location of stairs, exits, toilets, smoke detectors, fire escape. The list is endless. How can a layman do all that?

"I knew the costs would harm our business. But we realised we didn't want to withdraw what is a service to our guests."

'Come on, this is just ridiculous'

THE move from a fixed licence fee to a sliding scale based on rateable value has hit Stephen Winyard's business hard.

Mr Winyard owns Stobo Castle, one of Scotland's most exclusive leisure spas, tucked away in the rolling Peeblesshire countryside.

He says he will have to pay at least 3,400 to licence his premises over the next three years. That compares with a previous three-year renewal fee of only 86.

"The inflation rate of Zimbabwe doesn't compare with this. It's unfair and totally ridiculous," he said.

"I would like to see a representation from the tourism industry meeting with the justice secretary to say 'come on, this is just ridiculous'.

"How many pubs, clubs and hotels do they want to go out of business?"

Mr Winyard says he has no option but to stomach the extra cost, even though alcohol sales represent only 2 per cent of the hotel's turnover.

"We can hardly say to our guests 'sorry, you cannot have a glass of wine with your meal'," he said.

"The Scottish Government is taking a shotgun approach to small businesses."