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Licence costs 'could close pubs' Licence costs 'could close pubs'
(about 1 hour later)
Smaller bars and rural pubs face closure under a new licensing scheme which could quadruple their fees, the licensed trade is to warn MSPs.Smaller bars and rural pubs face closure under a new licensing scheme which could quadruple their fees, the licensed trade is to warn MSPs.
The industry claims the proposals could result in "unjustified" costs.The industry claims the proposals could result in "unjustified" costs.
The justice secretary is to tell the justice committee the rise will cover extra costs of enforcement, paid for by the industry instead of taxpayers.The justice secretary is to tell the justice committee the rise will cover extra costs of enforcement, paid for by the industry instead of taxpayers.
The proposals would see some pubs facing a maximum fee of £2,000 for their licence application.The proposals would see some pubs facing a maximum fee of £2,000 for their licence application.
The system will require a new network of Licensing Standards Officers, who will police the licences and monitor the impact of pubs and offsales on communities in terms of anti-social behaviour.
This statutory instrument... could impose an unjustified cost of £20m on the 20,000 licensed premises in Scotland over the next 18 months David DanielPunch Taverns
The Scottish Government said it was appropriate that businesses which would profit from the licences should pay the costs of administration.
However, the trade estimates that the cost to the sector will rise from £5m a year to £20m.
It said an unfair burden would fall on smaller and rural pubs, leading to closures.
David Daniel of Punch Taverns, which owns 500 premises in Scotland, is among those urging the committee to drop the plans.
"As a member of the Scottish Parliament I am asking you to reject this statutory instrument, which could impose an unjustified cost of £20m on the 20,000 licensed premises in Scotland over the next 18 months," he says in a submission.
He said the increases did not reflect the cost of administration of the licence system.
Tory MSP Bill Aitken, convener of the committee, has tabled a move to block the increases.
But Mr MacAskill will argue that the new fees will end years of the licensing system being subsidised by the taxpayer.
Fee income at present covers only 63% of the licensing system's running costs and the rest is met from other council resources.