Speech by Minister McEntee at the announcement of the General Scheme of the Sale of Alcohol Bill 2022

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Royal Hibernian Academy Gallery, Dublin, 25 October 2022

Thank you for coming here today to this wonderful setting of the Royal Hibernian Academy.

It is, of course, a beautiful gallery.

But it's also a venue.

It has held events and nights showcasing not just the best of Irish art but music, DJs, food, crafts and much more besides.

Some of which I have been fortunate enough to attend myself!

Venues like the RHA will be central to reinvigorating our night time culture and economy.

To allowing our towns and cities rival what is on offer culturally across Europe and beyond.

With these reforms, we are working towards that goal.

By helping to provide more choice across the night time economy - and more opportunities for those in our cultural and hospitality sectors.

By encouraging younger people to open a pub, start a venue, a club night or an exhibition space, enriching our culture as they do so.

I know that the Tánaiste, Minister Martin and my colleagues in Government share this view.

Supporting our night time culture and economy, including by reforming our antiquated licensing laws, was a central promise in the Programme for Government and in my own Justice Plans.

To do so, we need modern laws that are fit for purpose, while also recognising that the sale of alcohol is too important to be treated as if it were just any other commodity.

And recognising too that concerns around public health and public order are vitally important.

Our licensing laws are out of date for the requirements of modern society.

Their foundations date back over 200 years - beginning with the Intoxicating Liqours Act of 1815.

Over the years, we have added to them piece by piece.

What we have now is a patchwork of 100 laws - two thirds of which pre date the foundation of our state 100 years ago - in need of modernisation and reform.

Under the reforms we are announcing today, we will instead have one, modern piece of legislation to regulate the sale of alcohol.

This will allow for a greater understanding of the licensing system - and the enforcement of that system where it is required.

And it will streamline the system by almost halving the number of licenses available.

A key objective of my proposals is that the licensing system is not only modern, efficient and cost effective - but that it has accountability at its core.

As I have said, the sale of alcohol cannot be treated as if it is the sale any other good.

It is vitally important that the interests of public health, public order, the local community and the safety of those present on a licensed premises are prioritised.

It should not be easy to obtain and keep a licence.

In comparison to many other countries, we have a restrictive licensing system.

Under my proposals, that will remain the case.

Anyone who wants to apply for a licence must still go to the courts.

To provide a greater opportunity for community voices to be heard, as well as to streamline the current system, responsibility for licensing will move from the Circuit Court to the District Court.

Applicants for a licence will be required to notify the local fire authority, An Garda Siochana and the HSE of their application and publish a notice in the local media.

In addition to these bodies, we are also allowing a representative of a local authority and local people with a genuine interest to object to the granting or renewal of a licence.

The grounds on which an objection can be made will, amongst others, include:

• the number of similar premises in the same area
• the unsuitability of the proposed premises for those living in the neighbourhood
• in line with my Zero Tolerance plan to tackle domestic, sexual and gender based violence, that the premises was not operated in a manner which protected staff, patrons and performers from harassment - including sexual harassment

As is currently the case, renewal applications will go before the court where an objection to a renewal of a licence is made.

I am also introducing new provisions to help enforce the law, such as strengthening conditions around the online sale of alcohol.

Online sales must be paid for in advance and the person delivering the alcohol must check that the person receiving the delivery is 18 or older. Failing to do so will be an offence.

With this legislation, I am confident we are striking the right the balance - between maintaining strict controls and safeguards while supporting our night time culture and economy.

There is a reason why there is an Irish pub in cities in so many countries - it is because the Irish pub is known for its warmth and welcome all over the world.

It is a reputation built on its place at the centre of our communities - in towns, villages and cities across Ireland.

Having worked in a pub, I know how important the pub is to the cultural life of the country. I have worked behind the bar and seen the social outlet it provides for many, particularly in rural Ireland.

The local pub is an institution where we so often come together - to chat over a drink or food, to host community events, to celebrate and to mourn.

I believe it is an institution worth protecting, and that we should support our publicans – so many of whom have built up local businesses over decades, through generations of the same family.

In moving the licensing process to the District Court, we are also reducing the cost of making applications and fees for publicans.

As part of the process of streamlining the licensing system generally, opening hours for licensed premises will be standardised across the week to serve the needs of a modern night time economy.

Regular trading hours will change to 10.30am to 12.30am seven days a week.

The seven day on licence will remain the foundation of the trade generally.

We will also make the changes introduced during the pandemic to facilitate outdoor service permanent.

And we will ensure that everyone who applies for one of our new licences must meet the same standards - such as planning, fire safety and the need to run a premises properly - as publicans are required to.

There must be a level playing field for all.

The current system makes it more difficult for anyone who wants to open a new pub in towns and villages where a pub has closed its doors.

Or to reopen a pub which was once the pulse of a town, and is now a shadow on the main street.

We must also acknowledge that this is a product of changing habits, as well as economic reasons.

And I would like to say clearly: I do not believe we need a dramatic increase in the number of new pubs.

But, in circumstances where a town has lost its pub, we should acknowledge that that community has lost one of its focal points.

And we should make it easier for someone to serve that community if they wish.

At present, anyone who wants to open a pub or off licence can only do so if they buy an existing licence from a current publican or off licence holder for an undisclosed fee.

This process, called ‘extinguishment’ was introduced over 100 years ago.

It is a largely closed process lacking transparency.

What often happens is that the licence held by a pub in a small community is bought by a large supermarket chain to be used for the purposes of an in store off licence in an urban area.

In the last ten years, we have seen 329 new off-licenses open.

And if someone wanted to re-open the pub which had sold on its licence, or open a new pub in a different premises in the same town, the cost of buying another licence could be prohibitive.

This is especially the case in smaller villages and towns, where there are far fewer potential customers than would be the case in urban areas.

To help develop a vibrant night time economy and culture, support our pub sector and especially help our rural towns and villages, the ‘extinguishment’ requirement for pubs should be wound down.

However, I believe there is a strong public health rationale for maintaining it for off licenses.

Publicans and those who operate venues are required to run an orderly business - and alcohol is served in a controlled environment.

Alcohol is consumed at home in an uncontrolled environment, and removing the extinguishment requirement for off licenses would not support the development of night time culture and the economy.

But reforms to provisions such as these, over a century old, require a period to allow people readjust.

That’s why I am proposing a three year transition period following the enactment of this Bill - during this period, the extinguishment provision will still apply.

After three years, it will no longer be in place, except for off licences.

And only licenses held prior to the enactment of this legislation will be available for extinguishment.

No new licences granted after this bill is enacted will be allowed to be offered for purchase to those wishing to open an off licence.

We will set out the fees which will be required to obtain and renew a full publican’s licence as we progress through the legislative process.

As I outlined earlier, it will be for a District Court to decide if a licence should be granted, and on what terms, after it has heard from all interested parties.

For off licenses, trading hours will also be changed slightly - in line with the current position where off licences can trade between 10.30am and 10pm six days a week, these hours will also be extended to Sundays.

It’s important that we support art galleries, theatres, museums and other cultural venues to provide more choice across the night time economy.

This could mean serving a glass of wine or a drink during a pre-dinner evening art exhibition or museum display.

A number of our fantastic national venues such as the the National Concert Hall and the National Gallery - are already able to do so.

But supporting night time culture is not just about national institutions in our major cities - vibrant night time culture can reinvigorate our towns and villages too.

I want to ensure that smaller cultural institutions and galleries can help breath life back into our towns and that is why my proposals allow smaller venues apply for what will be called a cultural amenity licence.

This will be strictly for venues where the sale of alcohol is not the main activity on the premises.

It is only for the convenience of people who attending a venue for another reason, such as an exhibition, including those in venues like the RHA we are in today.

And it will only be for a set period of time around that event - from an hour before the performance to an hour after the performance.

As we draft this legislation, I will engage with Minister Martin on how we can best ensure that those who will be granted this licence operate genuine cultural venues.

And, in addition, there will also be a role for the District Court to ensure that these venues meet the same requirements as fully licensed premises - to ensure a level playing field for all.

I know the pandemic restrictions we had to introduce to protect lives had a devastating effect on many businesses.

None more so than our nightclubs and late bars - and this government is committed to supporting the musicians, venues, event operators and organisers who are integral to creating a vibrant cultural life.

In Budget 2023, we halved the cost of Special Exemption Order court and excise fees from €410 to €205 to support our businesses in the night time economy.

And I know the Tanaiste and Minister Martin have also been to the fore in helping these businesses through an extremely difficult period.

But the system of Special Exemption Orders - whereby a nightclub or late bar must obtain these court orders for every occasion they want to open past normal hours, up to 2.30am - is in need of significant reform.

Their cost and administrative burden is significant.

Applying for a “special exemption order” for these businesses is a contradiction in itself.

These orders are actually a requirement for them to continue to run their operations, such as nightclubs.

Under my proposals, late bars and nightclubs will be able to apply for a late bar permit or a nightclub permit on an annual basis at the District Court.

We will carry out further work on the fees to be charged for these permits as we further draft this legislation and supporting regulations.

But it is my intention that these fees will only be required to cover the administrative cost to the courts and other State agencies and will not be constructed as revenue raising measures.

These permits will be available to holders of a publican’s licence or a hotel licence, and they will also be subject to District Court approval.

There will be the same requirement for notice to be given to a range of agencies, such as fire authorities, and allowing for the consideration of local people to be taken on board.

Potential grounds for objections include, for example, whether there is an undue threat to public order or public safety in the area and that the premises is unsuitable to be a nightclub or late bar.

Any required planning conditions must be complied with and nightclubs and late bars will be required to have both CCTV outside their premises and security personnel who are registered with the Private Security Authority.

For a nightclub, at least a fifth of the floor area must be given over for a dancefloor and a live band or DJ must be playing.

And the opening hours for late bars would remain at 2.30am.

Our late night venues and nightclubs are at the heart of night time culture.

Nightclubs are an integral part of the life of a city.

We do not just experience music on the dancefloor.

Clubbing is culture which drives creativity and shapes attitudes.

Unfortunately, we have seen the numbers of nightclubs in Ireland reduce significantly in recent years.

Some estimates have suggested that we only have 80 nightclubs, down from over 500 twenty years ago, to 300 in 2009 and only 80 today.

And the nightclubs which remain often do not have the infrastructure or facilities which are expected across Europe and the UK.

I know so many of us have been to events - to see DJs or bands in clubs - on weekend breaks and holidays and wondered why we couldn’t do the same at home.

To support Irish nightclubs - and ensure that our night-time culture is equal to that in cities across modern European cities - I am proposing that nightclubs would have the option of staying open until 6am, with the requirement that alcohol cannot be served after 5am.

I do not anticipate that all holders of a nightclub permit will avail of this option.

Instead, I believe it would be suitable for a very small number of nightclubs in our larger cities which cater for higher populations and tourist numbers.

These are just a few of the significant reform measures contained in the General Scheme of the Sale of Alcohol Bill 2022, which Cabinet has approved today.

In even getting to this point, my department and I have carried out extensive consultation with representative groups from the hospitality and night time economy sectors, public health bodies, consumers and the wider public.

This consultation showed a strong demand for reform.

I fully understand the desire for reform, because I share that desire.

I say that as someone who has worked in a family bar, in a family restaurant and in late bars and nightclubs in town, many of which are, unfortunately, closed, including the Bernard Shaw and the Twisted Pepper.

I have worked in bars and clubs abroad.

I know how passionate many in this sector are - those who own their own businesses, are promoters or DJs, or artists, manage different events or are otherwise involved.

I have also been known to dance on occasion - but unfortunately not for some time, for a variety of reasons!

I know how valuable night time culture is - not just in economic terms, but in how it shapes who we are collectively.

It needs to be supported, and I believe this legislation will be a significant step in doing that.

But I know a reform as significant as this requires careful consideration.

That is why, as well as publishing the General Scheme of the Bill today, I have also referred it to the Oireachtas Justice Committee for its consideration as part of the legislative process.

We will have further consultation ahead of presenting a full Bill to the Oireachtas next year - and I also plan to have this Bill enacted next year.