The Intoxicating Liquor Bill, 2000, marks an important milestone in the Government's approach to the modernisation of our licensing laws. It can, with a good deal of justification, be described as the most comprehensive single package of reform measures ever introduced to the Oireachtas on this issue.
It is reasonable to suggest to the House that the Bill introduces a system of permitted hours in line with public expectation and demand and on terms that are socially and economically acceptable. It does away with decades old restrictive legislation governing access to the market, without undermining the economic basis which obtains for the holders of licences. It introduces innovative, workable and strict penalties against those who engage in the criminally irresponsible practice of selling or supplying intoxicating liquor to under-age persons and it introduces complementary and in certain areas much needed reform of our law in relation to registered clubs.
The gestation period for this Bill has been long but I prefer to think it reflects a solid process of consultation, reflection and determination to deal with the issues. Anyone who knows the licensing laws knows that they are labyrinthine in their complexity. They were once described as something like an enigma inside a puzzle or vice versa. It is also the case that everyone has a view on the licensing laws. I am sure this will be borne out by the debate here today. I expect there will be many contributions, all of them worthy and reflective of Senators' personal and political views on a subject dear to our hearts.
It was because of the keen interest in the laws on intoxicating liquor that I took the time to canvass widely for views before I put forward my policy proposals to the Government. I can safely say that in developing the proposals in the Bill I have, through seeking written submissions, through formal and informal meetings and through visits the length and breadth of the country, got a firm indication of what is demanded by way of change, but more importantly what changes will work and gain acceptance across many different strata and interests.
I do not claim that what I propose will fully satisfy, on an individual basis, every member of the drinking and non-drinking public, or every individual publican, restaurateur or other licence holder. There will be some who consider that I have not gone far enough, as there will be some who hold the view that I have gone too far. The proposals in the Bill, I am convinced, represent the best possible deal for all in that they strike a fair balance among the many different interest groups, be they groups representing the licensed trade, such as publicans, hoteliers, restaurateurs, night club operators and off-licence holders, or groups in society generally, not least the consumer and parents who are deeply worried about the negative consequences of under-age drinking.
The process of examination and change to our licensing laws does not end with this Bill, comprehensive as it is. I recognise that more remains to be done. For this reason, I will shortly establish a commission on licensing. Following the publication of this Bill there is a clearer picture of what is to be the new law and, consequently, it is possible to establish a clear remit for the commission. The commission will continue the process of fundamental change to the licensing laws by, inter alia, reviewing the scope for a system of additional licences. This will be achieved in a programmed and coherent way, consistent with public expectations and the common good. The commission will be a representative one, whose membership will include Departments, representatives of the trade, representatives of consumers and other interests. The details are being progressed following on the Government's approval in principle for the establishment of the commission.
I wish to pay tribute to the joint Oireachtas sub-committee which undertook a study of the licensing laws and whose report represented an informed basis for my own detailed policy examination of this area. I have taken many of the recommendations of that sub-committee on board in this Bill and I was grateful for the informed view it offered me of cross-party thought on reform of the law. I also wish to acknowledge the interim report of the Competition Authority and the many submissions I received from interest groups and members of the public.
I will now deal in as much detail as possible with the main provisions of the Bill. Senators will be aware that an explanatory memorandum has been circulated with the Bill and every detail is mentioned there. It is no exaggeration to say that almost every provision in the Bill is of importance and of very real effect on persons in varying degrees depending on whether they are licensees of one class or another, or customers. For that reason there is much to inform the House on the Bill, but I shall be as brief as possible.
Part 1 of the Bill contains standard provisions, dealing with the Short Title, collective citation, construction and commencement, and defining some of the terms used in the Bill. Part 2 of the Bill deals with the general question of hours of opening of licensed premises and registered clubs. Section 3 provides for the abolition of the distinction between summer and winter time so that licensed premises will be permitted to remain open from 10.30 a.m. to 11.30 p.m. on Mondays, Tuesdays and Wednesdays, and from 10.30 a.m. to 12.30 a.m. of the following day on Thursdays, Fridays and Saturdays. Sunday opening will be from 12.30 p.m. to 11.00 p.m. – this means that Sunday closing between 2 p.m. and 4 p.m. is abolished, while no change is being made to Sunday night closing time.
The exceptions to this general rule are that it will not be lawful to open at any time on Christmas Day or Good Friday. On St. Patrick's Day, no matter on what day this falls, opening times will be between 12.30 p.m. and 12.30 a.m. on the following day. On 23 December, if it falls on a Sunday, opening will be permitted between 10.30 a.m. and 11.30 p.m. On Christmas Eve and the eve of Good Friday opening hours will be between 10.30 a.m. and 11.30 p.m. and on the eve of any public holiday premises may remain open until 12.30 a.m. on the following day. Drinking up time of 30 minutes will also be permitted on all days.
These changes are progressive. They introduce trading hours which reflect the changed pattern in drinking habits without applying a free-for-all, as would be the case if the Government had opted to provide for 24 hour opening of licensed premises. I am sure most Senators will agree that there is simply no demand for 24 hour opening. There is probably no closing time which will suit the needs and expectations of every individual. My view was that if I had to place a time limit on closing, it should be one which would satisfy the greatest number, and that is what I have done.
Section 4 introduces important changes to the law relating to premises engaged in a mixture of retail activity, licensed and non-licensed. I have brought together the position of permitted opening times for premises engaged in mixed trading with either an on-licence or an off-licence attached. All such premises will be permitted to open for non-licensed business between 7.30 a.m. and 10.30 a.m. on weekdays and on Sundays that fall on 23 or 24 December, and between 7.30 a.m. and 12.30 p.m. on other Sundays. This means that premises, such as supermarkets with an off-licence attached, which up to now could not open before 9 a.m. on any day of the week and not before 12.30 p.m. on Sundays, will be in a position to commence trading much earlier. Such premises will also be permitted to open for the sale of intoxicating liquor at 8 a.m. on weekdays. This is a consumer friendly change. It means that the customers of retail grocery outlets will be permitted to carry out their full range of shopping from 8 a.m. The Bill enhances the opportunities of supermarkets and other retail outlets. They may open for non-licensed business from 7.30 a.m. all year round except on Christmas Day and Good Friday.
Section 5 is an important one for night club and disco operators. It changes the law as it applies to special exemptions. These are granted by the District Court and permit the sale of intoxicating liquor on special occasions in licensed premises after normal closing time. The section abolishes the need to provide a meal as a condition of an exemption in the case of a special occasion, which is a dance held in a ballroom licensed under the Public Dance Halls Act, 1935, as well as the requirement that a premises be a hotel or restaurant. It also removes the restriction on the granting of a special exemption for any time on Sunday, that is, after midnight on Saturday night and after normal closing time on Sunday evening. It retains, however, the restriction on special exemptions for Monday morning beyond 1 a.m. except on a Monday morning that is a public holiday. The special exemption orders will be granted in normal circumstances to 2.30 a.m. unless the court considers it expedient, for stated reasons, to grant an exemption for a shorter period. The special exemption order, coupled with the dance hall licence, is the means by which a nightclub operates. The reality is that many customers in a nightclub do not frequent these venues in order to partake in a meal, rather the main activity is dancing to music and socialising. It is widely accepted that the meal requirement under the law as it stands makes little sense in those circumstances and should be abolished.
The need to provide a meal in respect of a special event organised for the entertainment of the members of a particular association, organisation or other such group, or on the occasion of a private function remains on the basis that a meal forms a particular part of such events in the first place.
The number of special exemption orders which may be sought in respect of a day of general or local festivity is being increased from six to 12. This change in the law will serve to benefit local areas where dances are held in conjunction with a local festival.
Section 5 also introduces a requirement that the grant of a special exemption order will not cause undue inconvenience to persons residing in the vicinity of a premises. This is a new requirement and one which is useful and necessary. It means that the court will act as the guardian of the rights of local residents and will be in a position to protect local residents where the late opening of a licensed premises might not be appropriate.
Section 6 provides for an exemption to the permitted hours where alcohol is served in a hotel or restaurant. It extends permitted hours in these circumstances by one hour over and above the time to which these premises may lawfully sell intoxicating liquor provided it is supplied with a meal. Section 7 applies the revised permitted hours to clubs registered under the registration of Clubs Acts, 1804 to 1999, and for the exemption allowed in respect of hotels and restaurants in section 6. These are necessary modifications to the permitted hours in respect of these premises arising from the changes in permitted hours generally which are provided for in section 3.
Drinking up time of 30 minutes will now be allowed after a period of a special exemption in respect of licensed premises or a registered club following a club authorisation. This means that in cases where a special exemption has been granted to 2.30 a.m., for example, customers will no longer be forced to stop drinking at that time but will be given adequate time to finish their drinks in an orderly manner.
I am providing in section 9 for a small but desirable change in relation to area exemption orders. These are granted for special events such as local festivals outside the Dublin county borough. At present, the orders cannot be granted for more than nine days in any one year in respect of a locality. The section provides for an increase, from nine to 12, in the number of days for which licensed premises may seek area exemption orders. Likewise, in section 10 I am removing the prohibition on the granting of an occasional licence on Sunday. Occasional licences are granted to a licensee by the District Court in respect of an unlicensed premises for a particular event. Many festivals, shows or exhibitions are held over a weekend and it has been represented to me that the relaxation of this prohibition will greatly benefit such activities. Persons who attend such an event over a weekend will now be able to enjoy a drink there on Sunday as well as on Saturday.
Section 11 amends the period for which a general exemption order may be granted. It is a technical amendment which follows as a consequence of the amendment of permitted hours in section 3.
Section 12 extends to restaurants having a special restaurant licence, that is, a full drinks facility, the revised permitted hours available to all other licensed premises under section 3. It also extends permitted hours by one hour over and above the time to which these premises may lawfully sell intoxicating liquor provided it is supplied with a meal.
Part 3 contains important provisions in relation to under-age persons. These will be by way of amendments or additions to particular provisions contained in the Intoxicating Liquor Act, 1988.
There will be a new penalty, by way of section 13, to strengthen the provisions against the supply or sale of intoxicating liquor to under-age persons. This section inserts a new section 36A in the Intoxicating Liquor Act, 1988, and provides that where a conviction for the sale of alcohol to an under-age person is upheld a licensed premises will be the subject of a temporary closure order. Premises which are the subject of such an order will have to display a sign indicating the reason they have been closed temporarily. Endorsement of licence provisions in existing law will remain, but endorsement will now be discretionary, not mandatory. The purpose of the new temporary closure of a premises provision is to provide a strong deterrent to abuses of the law in this area as it is designed to hit at the pockets of offenders and publicly identify them without necessarily having the looming prospect of forfeit of a licence. Because it is draconian, that sanction has rarely been applied by the courts.
Section 14 provides for further strengthening of the law relating to under-age drinking. The 1988 Act permitted a licensee to rely on the "reasonable grounds" defence in any proceedings against the licensee. The section removes that defence. This will place a strong onus on the licensee and his or her staff to demand proof of age, and the national voluntary age card is proposed as the appropriate means open to a licensee to establish such proof. Provision is also made in the Bill to remove the mandatory endorsement of a licence which follows conviction for an offence relating to under-age persons, though forfeiture of a licence remains available at the discretion of the judge under section 12.
I am introducing clarification in the law in relation to the employment of young persons in certain licensed premises. Section 38 of the Act of 1988 prohibits persons under the age of 18 years from being engaged in the sale of intoxicating liquor, with certain exceptions for apprentices and relatives of the licensee. The Bill makes clear that lounge staff may be employed to serve on tables but not from behind the bar of a licensed premises.
Part 4 deals with the issue, upgrading and transfer of licences. The effect of section 15 is that there will be a requirement simply to extinguish one licence from anywhere in the State when applying for a certificate from the Circuit Court entitling a person to receive a licence from the Revenue Commissioners. Restrictions such as population increases, opening within a mile of an existing premises and the prohibition on the use of a rural licence in a town or city are abolished under this section. The need to prove rateable valuation is dispensed with in relation to the granting of a new licence.
The court will take into account the fitness of the applicant and the unfitness or inconvenience of the new premises, their unsuitability for the needs of persons residing in the neighbourhood and the adequacy of the existing number of licensed outlets. The latter requirement of adequacy is not a condition as to the effect new premises will have on the business of existing premises. Rather it is designed to permit the court to assess whether a particular locality is sufficiently served by a particular form of licensed outlet, be it on-licence or off-licence. It will require the court to also assess whether a premises would be suitable in a particular location allowing for the needs of persons residing in the neighbourhood proposed to be served by the new premises.
The effect of this provision relating to the grant of new licences will be greater mobility in the movement of licenses from over-provided for and mainly rural areas to locations where there is a demonstrable need for such licences, particularly on the fringes of our major conurbations. It could have the effect, for example, of inducing existing licensees, persons experienced in the trade, to move from areas where they may or may not be operating in a commercially viable way to areas where there will be greater opportunities for them to provide a service to the public. It will also permit new entrants to the trade by making access to licences easier. I was not convinced, and neither was the Government, by the arguments put forward for full deregulation of access to the licensed trade, as if a licence for the sale of intoxicating liquor could be equated with a licence to sell postage stamps or sweets. Whether we like it or not, alcohol is not the same as other retail products and, as Minister, I am mindful of the very negative consequences of alcohol abuse and the effect of a totally deregulated regime, introduced all at once.
Section 16 provides a mechanism whereby the holders of restricted licences, for example six day licences, can convert them to ordinary seven day licences. Currently, the holder of a restricted licence can acquire a full seven day licence. This involves extinguishing an existing licence or licences. Arguments have been put forward that many of the holders – they number about 110 – cannot afford to extinguish an existing seven day licence and are finding it difficult to compete in the licensed trade. The cost of the conversion under the Bill is a once-off fee of £2,500, payable to the Revenue Commissioners, and is an attempt to pitch the amount to match the ability of genuine traders. Arguments have been advanced that many holders of six day licences are operating on the margins of economic activity and would not be in a position to afford a substantial conversion fee. Holders of restricted licences are being given one year to avail of the provisions of the conversion scheme.
I am concerned to avoid speculation in restricted licences which would appreciate considerably in value if converted as a result of any conversion scheme. This will be avoided as subsection (4) of section 16 ensures that the scheme of conversion will be subject to certain conditions. These are, in addition to the payment of a fee of £2,500 to the Revenue Commissioners, that the premises and restricted licence attached to it have been held by the applicant for a period of five years, that the licence holder inherited the premises, was given the premises by a relative or purchased the premises as a going concern. Additionally, on conversion the licence holder must, under subsection (4) paragraph (c), undertake not to dispose of the premises, transfer the licence or consent to its extinguishment for reward for a period of five years after the date of the first issue of the new full licence.
Should circumstances arise whereby the holder of a newly converted licence experiences a difficulty, for example a financial difficulty, and would be subject to hardship if he or she had to comply with the conditions provided for in paragraph (c), the District Court may, by virtue of subsection (7), waive or modify compliance with those conditions.
Section 17 ensures that an examination of the character of the person applying for an ad interim transfer of a licence under section 1 of the Licensing (Ireland) Act, 1855, is undertaken, and the court will refuse such an application unless it is established that the applicant is a fit person. Currently, the ad interim transfer arrangement is subject to three criteria: notice given of the application; the reason for the transfer; and that the applicant is not disqualified by law. These criteria will continue to apply. The addition of the requirement that the character of a person applying for an ad interim transfer of a licence will be examined will ensure that the Garda Síochána will be in a position to challenge applicants who are not of good character and who might otherwise get a foot in the business without proper scrutiny. Section 18 simply ensures that in any proceedings under this Part of the Bill relating to licences, the premises may be described by reference to a map, for ease of reference.
Section 19 extends the scope of the licences already available to race tracks, licensed under section 18 of the Intoxicating Liquor Act, 1962, and racecourses licensed under section 65 of the Irish Horseracing Industry Act, 1994. Under the section, greyhound race tracks and racecourses will be permitted to supply intoxicating liquor at certain authorised events such as trade fairs, exhibitions or concerts. The purpose of the section is to provide an opportunity for these race tracks and racecourses to generate additional income on days when race meetings are not being held, and thereby contribute to their viability. The types of functions envisaged are ones which could not be held in ordinary licensed premises, and the number of such events is being restricted to 15 per year.
Significant increases in fines are provided for a range of offences. These are set out in the Schedule to the Bill. I draw Senators' attention in particular to those for under-age offences, which are the subject of the greatest increases. I am concerned to ensure that the increased opportunities available under the Bill for the sale and consumption of intoxicating liquor do not lead to an increase in the incidence of under-age drinking. I am placing the highest onus on licence holders to act in a responsible manner in this regard, hence the increased penalties for breaches of the law. Coupled with the tough new provisions in Part 3 of the Bill regarding temporary closure of premises, I am confident that the law in relation to under-age persons is being suitably strengthened under the Bill.
Section 22 introduces a relaxation to the law as it relates to the sale of alcohol in restaurants. It permits the holder of a restaurant certificate and wine on-licence to serve beer in conjunction with a meal. It will not be open to such a person to offer off-sales of beer or to have a bar on the premises. The restrictions are not designed to make it difficult for the licence holder to operate. They are by way of recognising the essential nature of the commercial activity under way, that is, a place where the main activity is the provision of food. It is somewhat anomalous that one can drink wine in such restaurants and not beer, both of which products can be regarded as accompaniments to a meal. This section should assist restaurateurs to realise the economic potential of their establishments, provide a better service to customers and assist the attraction of such restaurants from a tourism perspective.
Section 23 amends the 1988 Act in relation to special restaurant licences, that is, a restaurant which is already permitted to serve a full range of alcoholic drinks. The 1988 Act requires a premises with a special restaurant licence to have a waiting area not exceeding 20% of the floor area of the dining area. I am removing this requirement, the purpose of which was, I under stand, to counter the possibility that such restaurants might become drinking emporiums in their own right. In reality, however, other restrictions, for example the ban on a bar and the definition of the premises as a restaurant, where other business is ancillary, achieves this purpose. The limitation on the size of the waiting area has given rise to design and architectural difficulties for many restaurants, particularly country houses, and these difficulties are being addressed in the Bill.
The Bill also removes the requirement for Bord Fáilte certification before the Circuit Court issues a certificate entitling a person to a special restaurant licence. The reality is that after some 12 years of operation, and notwithstanding the unprecedented economic success enjoyed by the country, the number of premises having a special restaurant licence remains around the 200 mark. The representative body for restaurants, the Restaurants Association of Ireland, has pointed to unnecessary regulation and the slow take-up of special restaurant licences as indicative of the fact that these regulations are overly restrictive. The joint Oireachtas sub-committee, in its review of the licensing laws, called for the relaxation of the standards and I am happy to oblige. It would remain open to my colleague, the Minster for Tourism, Sport and Recreation, to introduce a grading structure for restaurants, independent of the special restaurant licence, which would operate as a standards and/or marketing vehicle.
I am also introducing some changes to the code governing registered clubs. Section 24 serves to clarify the position in relation to the holding of functions. It sets out what is and is not an acceptable use of a private club premises, while not disadvantaging the use of the club premises in relation to functions that are of benefit to the community, from a charitable or benevolent perspective. The section also removes any doubt as to the use of a private club premises by a member of the club for a private function, such as a member's retirement or wedding anniversary celebration.
Section 25 deals with the circumstances in which intoxicating liquor can be supplied to non-club members. Under existing law, visitors may only be supplied with liquor on the invitation and in the company of a club member, and the name and address of the visitor must be kept in a book showing the date of each visit. I am making no change to that provision because it is central to the principle that liquor is supplied in a club premises for the enjoyment of club members. The purpose of the section is to make special arrangements for visiting teams as opposed to individual visitor guests. In the case of a visiting team or other body of people who are members of another club or organisation, it will be sufficient for a club official to enter the name of the visiting team and their number in the visitors' book. While these visitors are on the club premises they can be supplied with liquor at the request and in the presence of an official of the club. This will allow a club to cater for visiting teams in a more flexible way. It would mean that the essential private nature of the club is protected while easing the arrangements for the provision of refreshments to bona fide visiting club members.
Section 26 provides for registered clubs to advertise community events held on their premises where intoxicating liquor will not be provided in conjunction with the event. Existing law restricts the advertising of social functions by clubs. This provision was put forward as being specifically designed to curb abuses which had arisen in relation to the holding of discos on club premises. The argument is that by virtue of the private nature of clubs, their functions should be for the entertainment of members and their guests and not members of the general public. Although they may supply alcohol to members and their guests, clubs are not licensed premises and ought not to be in competition with such premises. However, the effect of current law has been that it is unlawful for a group to advertise the holding of a meeting, for example, to form a residents' association if the meeting is to be held on the premises of a registered club. Such an advertisement cannot even appear in a parish newsletter or community magazine. Many clubs are now seen as a community resource and have received substantial public support in the form of capital grants precisely because they are seen as contributing to the social fabric of a locality. They are sometimes de facto social centres and even call themselves such. Section 26 permits such advertisements, but only in respect of functions at which intoxicating liquor will not be served.
Section 27 repeals section 8 of the Intoxicating Liquor (General) Act, 1924, which requires that all sales of alcohol in an on-licence must be for "ready cash". In the context of present circumstances, including widespread use of credit cards, this prohibition is regarded as unenforceable.
Section 29 relaxes the conditions under which a wine retailer's off-licence may be obtained. Under current law a person who requires a licence only to sell wine off the premises is obliged to seek a wine retailer's on-licence as this also permits the sale of wine off the premises and does not have a court application procedure. In effect, a person who wishes to engage in the off the premises sale of wine is obliged to apply for a licence, the underlying definition of which is to be a "refreshment house" as defined under section 50 of the Finance Act, 1989.
Section 30 tightens the law where a company seeks a licence, renewal of a licence or transfer of a licence. It requires the company to be in good standing with the Companies Registration Office in that it has filed proper returns. The section also deals with the situation where an incorporated entity or an individual applicant trades under a business name which is a name that is different from the true name of the owner.
The Bill is ground-breaking in many respects and will represent a modern code of law for the coming decade and perhaps beyond. It removes provisions which, though long-standing, no longer represent what the market expects or demands. The proper balance has been achieved in this Bill which is forward-looking, its thrust is genuinely positive and it is responsive to the expectations of the vast majority of our citizens. I commend the Bill to the House.