Sexual Entertainment Licence Exemptions

George Howarth Excerpts

Tuesday 10th September 2013 Westminster Hall

[Diana Johnson (Kingston upon Hull North) (Lab)]

It is a pleasure to serve under your chairmanship this morning, Mr Howarth. I congratulate the hon. Member for St Austell and Newquay (Stephen Gilbert) on securing this debate and on setting out so clearly the current provisions and the particular problems with them that he has found in his constituency. Like him, I have never visited the establishments we are discussing; it will be interesting to hear whether the Minister has.

Lap-dancing clubs are a relatively new phenomenon in the UK, with the first clubs opening in about 1995. It has taken quite some time to refine the regime for controlling their operation. As we have heard in today’s debate, various licensing regimes have not been able to stop the proliferation of lap-dancing clubs, which is now a genuine concern for members of the public.

Although I think we are all agreed that we do not want to ban such establishments, it is quite right that the licensing regime recognises their special nature and the problems that they cause to local communities. It is perfectly understandable that people have concerns about the opening of such establishments in their local areas.

Such establishments are a part of the sex industry, and there are a number of valid reasons why people object to their existence. We have heard today about some of the problems in Newquay. I think all hon. Members would agree that it is vital for communities to have their say if and when applications are made for such clubs to open.

When such clubs first appeared in the UK in about 1995, there was no specialist licensing regime. The opening of sex shops and sex cinemas required specialist licences from the council, which had a range of powers to limit the availability of such establishments. There was also a specialist category of licence for sex encounter establishments, but that legislation applied only to London at the time. In all cases, while councils were responsible for specialist sex licences, magistrates retained powers over alcohol licensing.

That dual licensing approach was ended, as we have heard, by the Licensing Act 2003, which aimed to bring all licences for premises selling alcohol under one regulatory framework, under the direction of the local authority and guided by the four principles of licensing. They are the prevention of crime and disorder; public safety; the prevention of public nuisance; and the protection of children from harm.

While the intentions behind the 2003 Act were good, its application caused problems. There seemed to be widespread confusion as to whether a premises needed to declare adult entertainment as an integral aspect of the application and whether a council could take a position on the opening of such venues in its licensing statement. Several communities found that they could not prevent such premises from opening, and the application of the four basic licensing criteria seemed to vary extensively in relation to the opening of such establishments.

At this point I would particularly like to pay tribute to the work of my hon. Friend the Member for City of Durham (Roberta Blackman-Woods) and of the campaign group Object. They did fantastic work to raise awareness of the operation of the 2003 Act regarding lap-dancing clubs and suggested a way to control such venues.

In government, Labour listened to those concerns. We realised that the 2003 Act had given rise to unforeseen consequences, and we therefore changed the law. Changes to the control of lap-dancing clubs were introduced under the Policing and Crime Act 2009 by the then-Home Secretary Jacqui Smith, and we now have the present regime.

Under the powers contained in the 2009 Act, councils could decide to designate strip clubs, lap-dancing clubs and other similar establishments as sexual entertainment venues. Those in turn were controlled under the Local Government (Miscellaneous Provisions) Act 1982, in a way similar to that suggested by my hon. Friend and supported by groups such as Object.

However, the new powers are adoptive, meaning that councils may adopt them if they choose to do so. If they choose not to, lap-dancing clubs will continue to be licensed by the 2003 Act. It would be helpful if the Minister could set out how many councils have adopted the new approach. It would be interesting to know, given that the legislation was framed to give councils an option of taking that route, whether the vast majority have chosen to do so.

If councils use their discretion and adopt the new powers, both the council and local residents will have a much greater say over the operation of lap-dancing clubs. It will mean that the operation of such clubs will have to be reviewed annually; allow local people to object to the opening of a club if it is deemed inappropriate for the character of an area; and, even without objections, allow a local authority to reject an application on the basis that it is inappropriate given the nature of an area. The powers also allow a local authority to set a limit on the number of lap-dancing clubs in an area; limit the opening of such clubs to specific areas; and impose a wider set of operating conditions than can be imposed under the 2003 Act.

As I have said, it is down to councils to decide whether they want to use those powers. I am pleased to see that a number of Labour councils have been at the forefront of using the powers to ensure that local residents get a say in controlling such nightclubs. In particular, I commend Swansea’s Labour-controlled council, which has conducted an extensive consultation and decided that the maximum number of lap-dancing clubs in its city should be zero, reflecting the wishes of residents. It was interesting to hear about the situation in Newquay, with the five lap-dancing clubs before the change in legislation reduced to one using those provisions.

On the issue of infrequency and the loophole in the legislation, the hon. Member for St Austell and Newquay has set out clearly what that means on the ground to local communities. He is not alone in raising those concerns about the exemption. I would like to pay tribute to the Fawcett Society in particular, which has been highlighting that issue over a few months.

I can appreciate hon. Members’ concerns about such venues. Not only is it a concern that such venues can operate outside the normal licensing regime that other establishments have to comply with, and circumvent the controls that councils would place on their operation if they were subject to a licence, but it is understandable that people will have concerns about having lap dancing going on in, say, their local pub. The fact that such premises could be normal pubs for most of the time only makes it even more inappropriate that they are able to host such entertainment once a month.

Labour thinks that the issue needs to be reviewed and would be happy to work with the Government on that. The hon. Gentleman has suggested some positive ways of addressing the problem. I would be grateful if the Minister could tell us whether local authorities are monitoring and keeping a record of the use of the exemption. Do the Government plan to review the issue?

I look forward to what the Minister says about the matter. I know that the Government are keen to reduce regulation and do not want to see bureaucracy placed in the way of businesses; I have heard the Minister talk at length about that. However, in the present case, is he satisfied that there is sufficient regulation? I know that in recent legislation, the Government have reduced the bureaucracy relating to obtaining temporary event licences. Would he like to pursue that route, as suggested by the hon. Member for St Austell and Newquay?

The Minister, who is responsible for all licensing policy, will recall that one of the central commitments of the alcohol strategy was to rebalance the licensing regime in favour of local communities. It seems that the flouting of provisions related to the licensing of lap-dancing clubs needs to be addressed by tilting the balance back to the local community. Indeed, not only was that general claim about giving the community more power contained in the alcohol strategy, but it was followed up by the launch of a consultation that was supposedly intended to

“introduce stronger powers for local areas to control the density of licensed premises”.

Of course, that was before Lynton Crosby seemed to get involved in the whole alcohol debate, so I have a feeling that we might not be hearing much more about the alcohol strategy that the Government are to pursue, but I would be grateful if the Minister could say something about whether he is still committed to the aims that were set out just a few months ago.

Any changes that the Government have made seem to fly in the face of the commitment to give more power back to local communities. I want to raise with the Minister the announcement from the Department for Communities and Local Government, which seems to involve local communities losing their right to object to a change of use under planning law and potentially making the opportunity more available to businesses to set up lap-dancing clubs. As I understand it, they could turn a restaurant into a lap-dancing club without having to go through the normal planning applications. Would the Minister like to comment on whether that is really allowing communities to have their say?

I pay tribute to my hon. Friend again, and to my right hon. Friend the Member for Leeds Central (Hilary Benn), for their work in relation to the “Save our High Streets” campaign, which has been so effective at highlighting the dangers of some of the Government changes, which could make the opening of lap-dancing clubs more likely. Labour is very serious about looking hard at what happened with the Licensing Act 2003 and the changes that were made more recently, and about ensuring that the law actually does what local communities want it to do. As I said, I am very willing to look, with the Minister, at ways in which we could work on a cross-party basis to ensure that that happens.

Could I deal with one other issue? I am referring to the women who work in lap-dancing clubs. Some women choose to become erotic dancers—they make that choice themselves—but, like in the rest of the sex industry, there are many people working in this part of it whose choice is not so free. We know that the sex industry is responsible for a great deal of human trafficking and modern-day slavery. The Government have spent a lot of time over the summer talking about the proposed Bill to deal with modern slavery. Any progress in that area would of course be welcomed by hon. Members on both sides of the House, but as always the detail is rather sketchy, particularly about the support for victims. Perhaps the Minister can use this opportunity today to explain how that Bill would fit with the licensing regime, what interface there would be with regard to licensed premises that are found to have women working in them who have not made that choice about entering employment in the sex industry, and how that would fit with any provisions in the modern slavery Bill.

[Mr George Howarth (in the Chair)]

The debate can run until 11 o’clock—that time is available—but in the event that it does not, I will suspend the sitting until 11 o’clock.

--- Later in debate ---

[Mr Browne]

I do not have the precise numbers for what has been done or not done by each local authority. The decision is for local authorities to make, which brings us back to the point that I made a moment ago: even if I had a list, the Government do not presume to tell local authorities what approach they should take as long as they act within the confines of the law, as drafted and enacted under the previous Government, who took the view that it was right to give local authorities some discretion. One could say that that was rather uncharacteristic, because the previous Government, particularly the previous Prime Minister, tended to manage things tightly from the centre. That is the position however, and this Government are inclined to take the view that local councils should make judgments that they believe to be wise on behalf of the local community. One council may take one approach and another council the opposite approach, but that does not mean that one is right and one is wrong; they might both be right, because the demands of the two different communities may be different.

There is a balance to be struck between licensing conditions that are rigorous and appropriate and imposing unnecessary bureaucratic burdens on legitimate businesses. The hon. Lady criticised me for my belief—and the Government’s belief—that we should not impose unnecessarily onerous burdens on business in a way that makes it less likely that they will create new prosperity and new jobs in their communities. I am pleased that under this Government well over 1 million new private-sector jobs have been created and the economy is beginning to turn a corner, despite the predictions of the official Opposition that at this stage we would have strongly rising unemployment and a flatlining economy. The official Opposition never seem to realise that the reason why the country is getting off its knees and back on its feet economically is because we have not followed their approach in government, which was a very regulatory, very prescriptive, very centralised approach, which—

[Mr George Howarth (in the Chair)]

Order. The Minister is entering into an interesting discourse on the ideological framework behind all of this—I rather think we are heading towards John Stuart Mill—but he should confine his remarks to the matter in hand.

[Mr Browne]

Thank you for your guidance, Mr Howarth. That is an extremely flattering comparison with someone who is arguably the father of liberalism. I apologise; I was drawn down that path by the hon. Lady’s observations, but no doubt I strayed too far along it.

The Government want to ensure that the licensing conditions are rigorous and appropriate, but not so tightly prescribed that there is no room for flexibility or initiative or to respond to particular local demands. It is right that venues seeking to provide regular and frequent events of such nature are subject to tight and appropriate licensing conditions.

The specific exemptions to which my hon. Friend referred apply only, as he said, to those establishments that need not comply with the framework of regulations because they accord with three stipulations. First, there have not been more than 11 occasions on which relevant entertainment has been provided within 12 months. In other words, the exemption would not allow an establishment to put on such entertainment on a monthly basis over a year; it would need to be less frequent than that on average. Secondly, no such occasion lasts for more than 24 hours. It seems hard to imagine that an event of that type would last for more than 24 hours, but perhaps that shows a lack of imagination on my part, because that stipulation is in the legislation. Thirdly, no such occasion begins within the period of one month beginning from the end of any previous occasion. A person running such an establishment could not, for example, use their maximum quota of 11 exemptions on 11 consecutive Saturdays in the summer months. That would not be appropriate.

The exemptions are hard to abuse. They are narrow in range and represent intentionally limited circumstances. A venue cannot, for example, hold a regular event—even a monthly event—without falling foul of the regulations.

[Mr Browne]

I am grateful for my hon. Friend’s intervention, because he makes an important point, which might not have been considered by Ministers and those drafting the legislation on their behalf in 2009. I shall come on to that point in a moment, because I want to address it head on. Before I do so, however, I shall complete what I was saying before his intervention.

The reason for the narrowly drawn exemptions is because the Government recognise the virtue in flexibility—interestingly, when the legislation was drafted the previous Government recognised this—as we want businesses and local communities to have discretion and room for manoeuvre. Whenever legislation of this type is drawn up, one-off occasions that may not have been envisaged by the House come to light, and it can be frustrating not to have flexibility built into the system for such circumstances. Exemptions were included because it was recognised that not all premises that provide “relevant entertainment” should be classed as sexual entertainment venues. It was argued during the passage of the 2009 Act that premises such as a pub hosting a one-off birthday party at which a strippergram has been booked, for example, should not require regulation in the same manner as lap-dancing clubs that offer entertainment every night, or even every week or month. Most people would recognise that distinction.

Premises that hold infrequent events continue to be regulated under the Licensing Act 2003. Hosting regular sexual entertainment without the relevant licence would represent a significant breach of licensing conditions, so there is a licensing framework, but it is not as prescriptive as that in the 2009 Act. The previous Government and this Government view that as the right balance to strike. However, we now get to the nub of the point made by my hon. Friend in his speech and in his intervention, which is whether it is possible for ingenious bar owners to use the exemptions in a way that gives them more scope to provide regular entertainment of a sexual nature than was envisaged by Ministers and Parliament when the legislation was introduced in 2009.

My hon. Friend said that an individual could own four or five venues in one town and put on a sexual entertainment evening every Saturday night through the summer season—May to September—at one of the venues, advertising it in the others. The individual could do that within the flexibility afforded to him or her by the 2009 Act, and could make a virtue to holiday makers of the entertainment being offered at the end of their week-long holiday, even promoting it as part of a series of activities across the four or five bars. If other people in the town who were running sexual entertainment evenings or events had straightforwardly registered and complied with the Act but did not seek to operate within the flexibility afforded, competition could be created between them and those complying with the Act but using the exemptions in a way that was not envisaged by Ministers and Parliament.

Perhaps such individuals’ behaviour is not as assiduous and deliberate as I have described, but it goes beyond the spirit of the exemptions. It happens in Newquay and, I suspect, in other parts of the country where large numbers of people go on holiday, particularly young visitors, including groups of young males—or in some cases perhaps not so young. In those places a judgment is made about the market for such entertainment.

I am happy to extend to my hon. Friend the offer of a meeting with officials and, subject to his discussion with them, perhaps a meeting with me as well, not to consider, for the reasons I and others have given, how to scrap the exemption, because we see virtue in flexibility—and there would be a risk of unintended consequences if we removed it altogether—but to discuss whether the flexibility is subject to abuse and there is scope to make changes so that it is exercised in line with the spirit of what Parliament intended when the legislation was enacted in 2009. I want to sound a cautionary note to my hon. Friend, as we need to see how this can best work in practice.

The Government legislate and seek to introduce regulations the whole time, and there is pressure on the parliamentary timetable, so I cannot make my hon. Friend a specific offer this morning, but I recognise how well informed he is: he has raised a genuine concern, which is shared by many residents in Newquay, and no doubt in other parts of the country. We want a licensing regime that has flexibility but which is not abused. I am not saying that anyone is abusing it by breaking the law—but if they do so they should face the consequences—but that they are abusing it, not so brazenly, in respect of the spirit of the legislation. The safeguards that the previous Government sought to put in place to protect residents no longer have the intended effect.

As I say, I extend the offer, if my hon. Friend would like to accept it, to have such a meeting with officials, to explore a range of areas including whether there is potential for other licensing regimes or changes that the Government might consider to licensing more generally that could apply in these circumstances. We wish to ensure that communities receive the protection that they need and that local councils, acting on their behalf, are able to make decisions that people running sexual entertainment venues are required to respect and abide by, rather than bypass.

I thank you, Mr Howarth, for chairing the debate, and I thank the hon. Member for Kingston upon Hull North for her party’s interest in the issue which, I believe, reflects Parliament’s interest in ensuring that we have the right legislation. Most of all, I thank my hon. Friend for his assiduous service on behalf of his constituents. We look forward to hearing further representations as he strives so admirably to serve the people of Newquay in his capacity as their Member of Parliament.

[Mr George Howarth (in the Chair)]

The debate has been dispatched with such efficiency that the sitting is now suspended until 11 o’clock.