Police Reform and Social Responsibility Bill

Viscount Astor Excerpts

Thursday 16th June 2011 Lords Chamber

[Viscount Astor]

My Lords, I added my name to the amendments moved by my noble friend Lord Clement-Jones and also to the clause stand part. I do not intend to go through the basket of amendments that the noble Lord has moved but will confine my remarks to clause stand part and to one amendment in particular, Amendment 240Q, which relates to proposed new Section 172A(3)(a) in Clause 120(3), where it says “begin no earlier than midnight”.

This amendment and this clause are so important because it seems to me that the Government are attempting to change the policy of late-night bars and how they operate. They are in effect saying, “We are going to make it very easy for anybody to close everything at midnight”. For operators who have a 3 am licence, it is an incredibly important part of their business, for a number of reasons. In fact, that is often the bit of the business that makes the whole operation profitable. In my experience there has been no great push from the police to bring everything forward to midnight. Indeed, as the noble Lord, Lord Clement-Jones, said, in many areas the police would prefer it to be 3 am because people start leaving from midnight onwards and there is a gradual trickle of people going home, as opposed to the ugly rush there would be at midnight, leading to all kinds of problems of disorder. At 3 am most people have gone, with a few stragglers remaining. Equally, there does not seem to be any evidence that local authorities have been pushing to bring everything back to midnight.

I ask my noble friend the Minister to explain whether this really is a change of government policy by the back door, because that is what it looks like to the industry—if so, the Government should be honest and open and say what it is—or an attempt merely to give more powers to close down operators who are seen to be operating either out of their licence hours or breaking their licence conditions. There is no evidence so far in the industry that local authorities have any problems with operators who should be closed down. It is quite easy for local authorities to close down an operator, although there is concern about the legal costs of doing so. But most operators regard their licence as so important to their business that the last thing they want to do is jeopardise it. We need some explanation from my noble friend of what really is meant by Clause 120, as well as a satisfactory reply to deal with the concerns felt by many operators in the industry—and indeed not forgetting the poor customers.

[Lord Brooke of Alverthorpe]

My Lords, if the analysis of the noble Viscount, Lord Astor, regarding a change in government policy is correct, I welcome it. It is what the public want and, although some in the business sector will be unhappy about it, I think that overall this set of amendments would undermine the Government’s attempt to respond to the clamour which has increasingly grown up among the public at large and has been reflected in some of the work done in the consultation. Therefore, I hope that the Government will not backtrack and that they will dig in firmly and hold to their course on this. The public will certainly support them in that.

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[Baroness Browning]

My Lords, I suspect from what I have heard in this debate that I am going to end up having “nanny” in front of my name. However, I shall be a benign, jazz-loving nanny, so perhaps that will be all right.

An early-morning restriction order is an uncommenced power that already exists under the Licensing Act 2003 and will allow licensing authorities to restrict sales of alcohol in the whole or part of their area for any specified period between 3 am and 6 am. The fact that it is an uncommenced order made us look again at what needed to be improved in the previous legislation.

I was asked whether this was a change in policy on the part of the Government. These orders are a power that local authorities can use to restrict the supply of alcohol from licensed premises and clubs and at temporary events for a period of one or more nights beginning at or after midnight and ending at or before 6 am. We are committed to ensuring that licensing authorities and enforcement agencies are given the right tools to address alcohol-related problems, and we see this as a necessary tool to enable them to have more flexibility to deal with specific problems within their areas. At the same time, we need to balance this measure by promoting a healthy night-time economy to benefit businesses and the communities that they serve. I am confident that this proposal will provide the licensing authorities with an additional tool to deliver these aims. It will be up to them to decide whether they use it at all and how they use it.

I want to prevent any concerns that EMROs applied from midnight will unfairly penalise responsible premises that regularly trade between the hours of midnight and one o’clock. Those are not quite the same as the hours that the noble Lord mentioned in respect of his small jazz club but there are premises that go on beyond midnight. I acknowledge that the majority of retailers trade responsibly. However, I say to my noble friend Lord Astor that residents and residents groups have told us that the night-time economy generates a significant amount of alcohol-related anti-social behaviour and that these problems typically surface from midnight onwards. Indeed, not all serious crime is as a result of alcohol but 15 per cent of serious crime is committed after midnight.

There will be exemptions from EMROs set centrally by the Government in secondary legislation. These will ensure that retailers who operate responsibly are not unfairly penalised by the introduction of an EMRO, and we will of course be consulting on this. For that reason, I ask my noble friend not to press that particular amendment.

[Viscount Astor]

May I ask my noble friend a question before she leaves that subject because I know that she has a huge number of amendments to reply to? She spoke about crime committed after midnight, which is certainly true, but does she accept that the statistics show that the majority of crime is committed much later than that—at two, three or four o’clock in the morning? Therefore, to say that midnight is the cut-off which would help that is not correct or particularly fair to those operators. Does she also accept, which is very important, that if there is a tendency by the Government and local authorities to determine that midnight will be the new relevant hour, the effect will be to put half the operators out of business, which will create a much greater problem of social disruption and crime than there is at the moment?

[Baroness Browning]

I understand the point that my noble friend is making but I reiterate that this is a flexible option for local authorities. They will know where the hotspots are and whether things happen on a particular night of the week. They will have the flexibility to make sure that if they intend to exercise the option—it will be optional—to introduce an EMRO, they can scale the EMRO according to the problem that presents in their locality. It does not have to start at midnight or finish at 6 am but it is between those hours that an EMRO can apply. Just on that point, because I sense that noble Lords feel that this is a draconian measure, it strengthens the licensing authorities’ powers in the sense that it gives them an additional tool in the box, but to get that balance right it has the flexibility that I hope will not create the concerns that businesses might feel, as represented today. My noble friend Lord Clement-Jones mentioned that the full council would not decide to make an EMRO. It is the case with the existing legislation, and will still be the case that the decision will be made by the full council. That has not changed at all in the updating of the legislation.

Moving on to Amendments 240PA to 240SA and the question of private clubs, I recognise the intention of noble Lords to remove private club premises certificates from the effect of an EMRO. There are, of course, clubs and clubs. I am sure that in any private club, of which noble Lords are members, propriety is observed in their proceedings, whatever the time of the day or night. I see noble Lords trying not to catch my eye on this, so they may know. It is important to note that antisocial behaviour and crime and disorder are not necessarily attributed to one premises but a cluster of premises in a concentrated area. There is no evidence to suggest that clubs do not contribute to these types of problems in the night-time economy. The Government do not want to penalise those businesses that operate responsibly and as such, if the licensing authority decides to impose an EMRO in the local area, businesses, including all clubs, will be able to make a relevant representation and provide evidence that they do not contribute to late-night crime and disorder and anti-social behaviour.

At this point, I should say to my noble friend Lord Astor, that on many occasions as a Member of Parliament I went out on Friday and Saturday nights with the police in small Devon market towns where they have perhaps one or two clubs and some late-night licences. Although I completely admire the work that the police and other agencies do at that time of night, it has not been my experience as a Member of Parliament that all anti-social behaviour, including things that are well in the frame of criminality occur after 2 am or 3 am. I was prompted to go out with the police on one occasion because between the hours of midnight and one in the morning, small shopkeepers regularly complained that their shop fronts were kicked in. I would say to my noble friend that within the scope of EMROs and the procedure to be followed in a licensing authority introducing an EMRO into the area, there will be plenty of scope for businesses to make their case, if they feel that they have one. None the less we feel that it is an important tool that licensing authorities will welcome.

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[Lord Clement-Jones]

My Lords, that is deeply reassuring to us lawyers, but I am afraid it is not very reassuring to the owners of businesses because they will simply have to place themselves in the hands of my colleagues and myself in challenging these orders on the grounds that no reasonable council would have imposed them. That is a very tall order.

[Viscount Astor]

Far be it from me to try to deprive my noble friend of business, but does he agree that one of the problems is that almost no operators can afford judicial review unless they are part of a large chain?

[Lord Clement-Jones]

Absolutely. That is only going to add to the burdens on business. Although I accept that the Minister has gone as far as her brief will allow her, I seriously ask her to give further consideration to this. I was delighted to hear what the noble Lord, Lord Stevenson, had to say about his enthusiasm for live music, but the reason why he was talking about it was the potential impact on small venues and live music in areas where local councils have decided that they do not like what is happening in other places—not necessarily in the small clubs but in the large boozers, so to speak. That is sweeping up everybody into one single pot with one remedy. Although I have heard quite a lot today from the Minister that was reassuring about the ability to deliver flexibility, I do not think we have heard quite enough yet. The least convincing response was on TENs. If you have a TEN, and an EMRO is opposed, you can have a bit of a consultation on it, but actually the remedy is to move your event in time or space. That seems pretty onerous and jolly unfair if you are a local community group and you have to shift yourself in that way after an EMRO has been imposed.

I look forward to further dialogue with the Minister and very much hope that we will continue that, even before Report, on certain areas of these reforms of the Licensing Act. In the mean time, I beg leave to withdraw the amendment.

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[Lord Clement-Jones]

My Lords, I should like to speak to Amendments 240XF, 240XH and 241ZZA, while supporting Amendments 241 and 241Y. These amendments seek to remove the lines of the Bill which give councils the power to charge licensees for more than just cost recovery in the licensing system. Businesses in the sector are concerned about the cost implications of the amendment in the other place on fees. In already difficult economic times, licensees will be facing significantly increased costs, which will be particularly difficult to bear for small businesses.

The wording of the Bill is extremely vague, stating that businesses will not only be liable for costs associated with local authorities discharging the licensing function but also the general costs of the licensing authority and other associated authorities, such as the planning department. These amendments seek to delete the provision that would allow licensing authorities to reclaim not only the cost of carrying out activities relating to licensing but also any other general costs. This wording would effectively give local authorities power to charge licensees for a whole host of alternative activities even if they are not related to the cost of administering the licensing regime.

The legislation does not explain what safeguards will be in place for businesses. There has to be a transparent process where local authorities would need to demonstrate why their chosen fee level is appropriate. Businesses would have to have an opportunity to feed into this process and to appeal the decision if the local authority was looking to set fees at a level that was disproportionate. There should also be a national cap on the level at which fees can be set to avoid local authorities applying disproportionate charges.

While the measure would have a significant impact for all premises, there is the concern that it could disproportionately affect smaller businesses. It could be the case in certain areas of particularly high licensing fees that independent businesses find themselves priced out of the local market and therefore unable to compete with larger chains. That would be to the detriment of the consumer who would find that their choice is limited. With reference to the off-trade, a significant number of licensed premises are grocery retailers, so this decrease in competition locally would impact on far more than just the ability to buy alcohol. Any increase must consider the effect on smaller businesses.

Amendment 240XH is designed to ascertain the Government’s intention on the introduction of a cap of the amount that local authorities can charge. Subsection (3) of the new clause to be inserted in the Licensing Act 2003 under Clause 122(2) provides,

“the fee is to be determined by the licensing authority to whom it is to be payable”.

Subsection (4) of the new clause allows the regulations to provide a constraint on the amount up to which local authorities can charge but this does not necessarily mean that such a limit must be set. Businesses have a real concern that some councils may charge excessive amounts based on their costs, which will be difficult and expensive to challenge. We know already that the level of enforcement activity varies around the country and such variation is not necessarily driven by need. Not all councils are driven by the Hampton principles of good enforcement and over-zealous enforcement can be expensive and unproductive. The wide range of fees collected by councils under the old public entertainment licence regime was one of the drivers of their being subsumed into the Licensing Act 2003. A repeat of the problems, discrepancies and costs to businesses should not be repeated. A national cap, such as that imposed in the Gambling Act 2005, is a not unreasonable request and should be specifically included in the Bill.

Amendment 241ZZA builds on previous amendments to ensure that safeguards are in place in the legislation to prevent businesses facing excessive and unfair licensing fees.

[Viscount Astor]

Amendment 241, to which my noble friend Lord Clement-Jones referred, is in my name and concerns fees. Subsection (7) of the new clause to be inserted in the Licensing Act under Clause 122(2) states:

“In determining the amount of the fee, the licensing authority must seek to secure that the income from fees of that kind will equate, as nearly as possible, to the aggregate”.

Paragraph (a) of subsection (7) states that,

“the licensing authority’s costs referable to the discharge of the function to which the fee relates”.

I do not see any problem with that clause, which seems enormously sensible and would collect most of the costs. However, paragraph (b) of subsection (7) refers to,

“a reasonable share of the licensing authority’s general costs”.

That seems to be a recipe for confusion because there will be endless arguments about, first, what is a reasonable share and, secondly, what are the licensing authority’s general costs. I thought that when local government—there are many noble Lords here who are more expert than I am on it—determined fees and collected them, those fees related to the actual things that it was doing. The idea that this can cover general costs, as my noble friend says, would enable a local authority to say that general costs in many other areas—whether for collecting refuse or whatever—could somehow relate to this and then collect the fees. So there is a concern.

I hope that my noble friend can give me some comfort that this will not allow local authorities, which, as we know, are always short of money, to use this to collect fees, which would mean a greater burden on the industry than there should be. [Interruption.]

[Lord Brooke of Sutton Mandeville]

My rising is not normally greeted with that amount of drama and my observations will not in any way warrant that dramatic attention. As a footnote to what my noble friend Lord Astor said, it seems that a local authority in assessing its costs in terms of this process will have both fixed costs and marginal costs. Although I totally understand that he is arguing for marginal costs, there presumably has to be some way in which the fixed costs are recovered as well.