Laying down laws

Licensing reform has been close to the hearts of many in this industry for a long time, and it came as a blow that this year's General Election was called before a number of changes to the licensing laws passed through Parliament.

Four items of proposed legislation disintegrated when the election was called: the Licensing (Reform) Bill, the Deregulation (Licence Transfer) Order, the Sundays (Dancing and Licensing) Bill and the extension of permitted hours on Friday and Saturday nights.

However, several pieces of legislation did pass through the parliamentary process successfully:

The Deregulation (Employment in Bars) Order 1997. This came into effect on 7 May and for the first time it allows people aged 16 and over to work in a bar, provided they do so under a Government training scheme.

The Casinos (Deregulation) Order 1997. This came into effect just before the election on 3 April and involved two amendments to the law.

Firstly, there must now be a delay of at least 24 hours between a person applying to join a gaming club and being admitted to membership, compared with the 48-hour delay previously required. Since most casinos incorporate the 48-hour rule as a condition of the liquor licence, the change means they will have to apply for a new licence if they are to take advantage of this change.

Secondly, casinos are now permitted to apply for a Special Hours Certificate enabling them to sell alcohol until 2am, providing the sale of alcoholic drinks is secondary to the provision of gaming and food. The legislation does not apply to Sundays, however.

Public Entertainment Licences (Drug Misuse) Act 1997. This act, which has yet to come into force, amends two previous acts: the Local Government (Miscellaneous Provisions) Act 1982 and the London Government Act 1963. It allows local authorities to revoke a Public Entertainment Licence if they are informed by the police there is a "serious problem relating to the supply or use of drugs at or near the licensed premises" and they are satisfied that their action will assist in dealing with the problem.

Local authorities are also given the alternative of imposing conditions on the licence, if appropriate, or of refusing to renew or transfer a Public Entertainment Licence if a police report supports this.

A court may also revoke a licence altogether if satisfied there is a serious drugs problem and that revocation will assist in dealing with it.

Where there is an appeal against the decision to revoke or refuse to renew a licence on grounds of a drug problem, the licence is suspended until the appeal is heard, unless the court decides this is unfair because of specific circumstances.

In some ways, this act could be regarded as particularly severe because there appears to be no opportunity for the applicant to require the police to give evidence or to be cross-examined on it.

Special Hours Certificates. Two recent court decisions have significantly changed the workings of Special Hours Certificates: Marsden v the Chief Constable of West Midlands and R v Stafford Crown Court ex parte Shipley, which confirmed the Marsden decision.

Following the cases, licensing justices now have to put a starting time, as well as a termination time, on the opening hours of premises operating under a Special Hours Certificate. It also means that Special Hours Certificates replace general permitted hours and are not in addition to them.

Finally, throughout the hours permitted by the certificate, the sale of alcohol must accompany the provision of music, dancing and food. The starting time for permitted hours must, in other words, be the time at which the premises opens for the provision of music, dancing and food.

The practical effect of the decision is that premises which have a Special Hours Certificate cannot simply operate as an ordinary bar during the day and then turn themselves into a special hours operation offering dancing and food after 11pm to qualify for extra hours.

The Shipley case has now been taken to the Court of Appeal. The hearing took place at the end of July, but the court reserved judgement until October.

Martin Cowell is head of the liquor licensing unit at law firm Dibb Lupton Alsop. Tel: 0345 262728.