Alcohol Licence Increase to Hurt Local Trade

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Alcohol Licence Increase to Hurt Local Trade

New regulations that will require all pubs, hotels and other licensed premises to re-apply for their alcohol licences will harm Perthshire’s tourist trade, claims Mid-Scotland and Fife Tory MSP Murdo Fraser.

The MSP believes that the new licensing regime, which is being phased in between March 2008 and January 2009, could put smaller pubs out of business and damage tourist outlets due to the large increase in cost to obtain a new alcohol licence.

“There is a serious issue here about the impact of a steep increase in the cost of alcohol licences," he said. "It is extraordinary that the Scottish Government is committed to a 50% increase in tourism revenue by 2015 and yet appears perfectly happy with new regulations that are having a detrimental impact on the tourist industry in Perthshire and across Scotland.

“There has been a substantial fall in applications, many of which are from small tourist businesses. These businesses might be retailing miniature whiskies or obtaining a table licence for serving wine to residents at small B&Bs and guesthouses. The costs of renewing licences are deterring them from continuing with these initiatives. In Perthshire’s towns and villages, there are many tourist shops and businesses that require an alcohol licence to sell some of their gifts. The high cost of a new alcohol licence will mean that for many businesses in Perthshire it is just not worth re-applying for a new licence and these businesses will lose trade.

“Having spoken to tourist traders in Perthshire, I know of many anecdotal cases whereby small businesses are not re-applying for an alcohol licence. It is therefore welcome that the Scottish Government is to ask the Accounts Commission to review the fee system after September 2009.

“Sadly after this time there will already have been a negative impact and I fear that Perthshire businesses will have lost trade. The Scottish Government needs to apply the practice of joined-up government and that should mean protecting our vital tourist trade. It needs to act more quickly in reviewing the costs of alcohol licences.”