Stormont has been urged to act after an independent report into the licensing laws here found that the current antiquated system was stifling competition and restricting growth.
Nightlife charity Free The Night welcomed the Independent Review of the Liquor Licensing System in Northern Ireland commissioned by the Department for Communities and led by the University of Stirling.
The report suggests the current “archaic” system is not fit for purpose and is leading to a drift towards fewer pubs and clubs, but more off-licences.
The licensing system in Northern Ireland, according to the review, “is not only substantially different to the rest of the UK but unusual by comparison to the rest of the world.”
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It recommends that the ‘surrender principle’ — a one-in-one-out system designed to limit the number of licensed outlets which dates back almost 120 years — is substantially reformed or completely replaced to protect both public health and the nightlife sector.
It uncovered several “deep-seated problems” with the current licensing system’s design, operation and enforcement and put forward a set of recommendations to the Minister for Communities, who has six months to respond.
Researchers found the surrender principle is causing an ongoing drift of these limited licences from pubs, venues and other licenced spaces to off-licences, and that higher densities of off-licences are closely linked to increased alcohol-related harm — deaths, hospital admissions and crimes associated with alcohol.
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 pubs were closing in urban and rural areas, with most surrendered licences being bought by small-to-medium sized grocers.
Lead researcher 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.”
The review found key agencies “often lack the capacity, knowledge and powers to enforce licensing laws comprehensively and efficiently”.
“Northern Ireland’s nightlife has been held back for too long by an outdated system”
“Police, other regulatory authorities and the general public often struggle to navigate the licensing system due to a lack of simple, clear information,” it stated.
The review recognises that the current licensing system “creates barriers to diversification and innovation in terms of both the range of products available to consumers and the types of venues licensed to sell alcohol.”
To address this, a recommendation is made to create a pool of available special licences for cultural venues that can’t be resold or transferred, meant specifically for new entrants, small to medium enterprises, and start-ups offering artistic and cultural benefits to the wider community.
The process for getting an occasional licence, for pop-up events, one off events and festivals, is recommended to be simplified, allowing organisations to apply without having to go through an existing licence holder.
The lack of nightclubs in Northern Ireland was described as “striking” with the acknowledgement “they do form an important element of the night-time economy in a number of other cities” and that “if the current restrictions on operating hours are exacerbating this problem… then it is something that needs to be considered.”
Holly Lester of Free the Night
Another lead researcher, Professor Niamh Fitzgerald, said the team’s analysis of deaths and hospital admissions due to alcohol found that both are more strongly linked to off-licence numbers than pub numbers.
She said: “Too often reform of the licensing system has been presented as a false choice between the status quo and a free for all.
“The reforms we propose would retain a cap on premise numbers but allow for expired licences to be re-allocated to offer consumers something new. The reforms would also limit off-licence numbers to avoid a free for all and protect public health, whilst fixing deep-seated problems in the system that will otherwise persist.”
Holly Lester co-founder of Free The Night, which argues that limiting the time cultural venues can operate restricts cultural participation and the ability to bring people together, said: “Northern Ireland’s nightlife has been held back for too long by an outdated system, limiting cultural expression and economic growth. We urge policymakers to act on these findings to create a thriving, diverse, and accessible night-time economy.”