The biggest change in Northern Ireland’s licensing laws in over a quarter century was made at Stormont last year. This was a move that the government claimed would modernize the way alcohol was purchased and consumed.
The legislation also allowed for extended opening hours and ended restrictions during Easter weekend. It also changed the way that alcohol producers and breweries could sell alcohol on-site.
Two independent breweries, however, who lobbied for changes, said that the new rules regarding on-site sales are so restrictive they were unable to take full advantage of them.
Hospitality Ulster has, however, supported the new rules and stated that it believes they are a fair compromise among different types of businesses. Meanwhile, the Department for Communities announced it would soon be requesting a review of the system.
Bullhouse Brew Co opened its permanent taproom in East Belfast in June. Boundary Brewing will follow in September.
Both companies chose to go through the long process of getting a traditional pub license.
William Mayne, Bullhouse Brew Co. said that “the local producers license is very restrictive.”
You are allowed to open them only twice per week, or 104 times per year. However, you can only do this between 16:00 and 22:00.
“People come in to look for other products, such as guest beers. We also do collaborations with English breweries and want to bring their beers to the UK. Without them, we wouldn’t be able to do this.”
Matthew Dick, Boundary Brewing also found it problematic that the 104-day-per-year restriction was enforced.
He stated that no brewery would hire staff or invest in infrastructure if they could only be open for 12 hours per week.
“That’s crazy, it’s going to leave you with a sub-par customer experience and a missed opportunity for the brewery.”
Bullhouse and Boundary purchased licences from pubs that had closed elsewhere in Northern Ireland and went through the long and expensive legal process of moving them all to Belfast.
This is due to the surrender principle of the Northern Ireland licensing laws. It was not changed by the new legislation.
This means that there is a limit to the number of licenses available in Northern Ireland. To open a pub, or off-licence, you will need to get a license from an existing business that has given up its licence.
Because they are in high demand, Mr Mayne stated that this has led to an average price of PS100,000.
Both he as Mr Dick want to see the surrender principle removed.
“The surrender principle” is the toothpick that holds up a whole stack, said Mr Dick.
The market will become more competitive and more free if you remove it. Although it is one of my most valuable assets, I would not hesitate to give it up to equalize the playing field.
Mayne shares his belief that the system and its cost restrict independent businesses and consumers’ choice.
“Small, independent venues cannot be created under the current system,” said Mr Mayne.
“There are no small wine bars in Belfast, and there aren’t any small pubs except for historical pubs.
“A 20-seat wine bar is not financially feasible if you have to pay a lot of money for a license, especially in the centre of the city.
“Getting rid from the surrender principle would lead to the creation of many small, independent venues that would support independent producers.”
Colin Neill, Hospitality Ulster, supports both the surrender principle and the rules surrounding taprooms.
“We supported taprooms but you don’t want to create something that competes with pubs.
You get unfair competition since a pub pays its rates on turnover.
“There will always exist people who feel they don’t get what you want, but I believe the current model allows them to coexist.
“I am aware that some people will argue against the surrender principle and say that it should be a free market.
“I think it has helped keep our pub stock very high quality, if you compare it with a lot of Great Britain’s where there are huge chains and every pub looks the same.”
“If you make it a free-for all, it will lead to a race for cheap drinks. It is important to regulate it.”
M. Neill stated that the new legislation was a positive development for pubs, and deregulation was more appropriate.
Matthew O’Toole, SDLP Assembly Member, voted an amendment to the Stormont licensing law that committed the Department for Communities and the Department for Communities for a review of the surrender principle by 2024.
A spokesperson for the Department for Communities stated that the minister had delivered the largest reform to our liquor licensing laws for many years. This resulted in a more modern, flexible system.
“The sector will be able to rebuild after Covid. The long-awaited changes have allowed local drink producers to sell directly to the public for the first time.
“The department will soon commission an independent review of licensing system to examine future options. This will include consideration for surrender principle.”