An independent report is recommending major reform of the Liquor Licensing System in Northern Ireland – including the establishment of a new Northern Ireland Licensing Authority.
The review, led by the University of Stirling’s Institute for Social Marketing and Health (ISMH), also suggests the ‘surrender principle’ – a one-in-one-out system designed to limit the number of licensed outlets – should be reformed to protect both public health and the pub sector.
The review, required under Section 23 of the Licensing and Registration of Clubs (Amendment) Act (Northern Ireland) 2021, uncovered several “deep-seated problems” with the current licensing system’s design, operation and enforcement and has put forward a set of recommendations to the Minister for Communities, who has six months to respond.
Commissioned and funded by the Department for Communities and led by Dr James Nicholls and Professor Niamh Fitzgerald, the research team carried out interviews with businesses, police, regulators, health services, and elected officials, and visited pubs across Northern Ireland – meeting hospitality and retail owners and staff – and carried out research in eight varied communities, involving community focus groups.
Economic impacts of the current licensed trade sector were analysed, as was the location and volume of premises including in relation to alcohol-related deaths, hospital admissions and crimes. Around 1,700 paper licensing records were manually reviewed in courts across Northern Ireland to identify in detail changes in the types and location of licences over a 10-year period.
The research found that pubs were closing in both urban and rural areas, with most surrendered licences being bought by small-to-medium sized grocers. The costs associated with acquiring a licence also created barriers that made it difficult for new pubs to open. Therefore, while the surrender principle protects existing pub licensees in a challenging environment, it does not appear to support growth in the pub sector as a whole.
Dr James Nicholls said:
“There are many great pubs in Northern Ireland, but the sector is in long-term decline. Under the current licensing system, most pubs that close are replaced by off-licences, while the reverse is almost never the case.
“The existing system was established over a century ago to tackle over-supply, but we believe reform can continue to effectively manage availability while better supporting the pub, bar and cultural venue sector in the long run. For example, by addressing the high cost of licences on the private market and an objections system that benefits incumbent businesses – both of which can stifle innovation and reduce diversity. At the same time however, existing businesses have genuine concerns about the future and reform needs to reflect this.”
“Many of the issues we identify have been raised in previous reviews, and we are not the first to propose reform. Change involves managing the needs and aspirations of a wide range of stakeholders and communities, we recognise that this is a challenge. However, our proposals seek to strike a balance between these competing requirements: supporting pubs, enabling innovation, protecting health, and modernising a system that has, in many respects, remained unchanged for decades.”