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Dáil Éireann díospóireacht -
Tuesday, 24 Mar 1992

Vol. 417 No. 5

Written Answers. - Public House Licensing Fees.

Michael Finucane

Ceist:

106 Mr. Finucane asked the Minister for Finance if his attention has been drawn to the overall decline in the public house business due to a combination of factors; if his attention has further been drawn to the fact that his decision to base the allocation of future licences on the valuation of licensed premises will lead to a further excessive financial burden and will cause further closures; the proposals if any he has regarding same; and if he will make a statement on the matter.

Pádraic McCormack

Ceist:

107 Mr. McCormack asked the Minister for Finance if he has made a decision regarding a system for the proposed changes in renewal of publicans licences; and if he will make a statement on the matter.

Michael Noonan

Ceist:

108 Mr. Noonan (Limerick East) asked the Minister for Finance the way in which the fee for public house licences as announced in the 1992 budget, will be computed; the multiplier of rateable valuation he proposes to use for this purpose; and the alternative method he intends using in relation to liquor licences for hotels.

I propose taking Questions Nos. 106, 107 and 108 together.

I announced in the budget that the annual charge for public house licences would, in future, be based on the rateable valuation of the premises concerned. A similar approach would be applied in relation to liquor licences for hotels although, in setting the applicable rate, account would be taken of the fact that the valuations of such premises reflected wider considerations than bar turnover alone. In framing these proposals, I considered that the present uniform rate of £100, which is applicable to all premises, irrespective of location and turnover, is highly inequitable and that this inequity would be further accentuated by any across the board increase.

I have subsequently received representations from both the Licensed Vintners Association and the Vintners Federation of Ireland asserting that many publicans already face severe difficulties and that these problems would be greatly exacerbated by the implementation of the approach to licensing outlined in the budget.

I am satisfied, however, that in most cases, possession of a licence from the State to sell alcohol conveys significant benefits and opportunities for profit and I intend to follow through on the original proposal.

In drawing up the detailed provisions for the new system, which will be contained in the Finance Bill, I will seek to ensure that all types of liquor licences are treated fairly and equitably having regard to the different nature, conditions and scope of the various type of licences. The points raised by the publicans' representatives will be considered in this regard.

In framing this proposal, I should say that my objective has been to ensure that the State receives a fair return for the benefits conveyed by the restricted issue of liquor licences. I am satisfied that these new charges, which will be modest as a proportion of turnover, should not be unduly onerous on publicans. I would point out, in that context, that the Government have refrained from increasing excise duties on alcohols and that, consequently, the real level of tax on alcoholic drink has fallen significantly, in recent years.
I also announced in the budget that applicants for certain licences, including publicans' licences, will be required to produce a tax clearance certificate from the Revenue Commissioners. The Finance Bill will contain the necessary provisions to allow me extend tax clearance in this way. I would emphasis that tax clearance does not give rise to any liability where none already exists.
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