Alcohol Licensing Advertising

Gordon Henderson Excerpts

Tuesday 18th June 2013 Westminster Hall

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

It is a real pleasure to serve under your chairmanship, Mr Streeter. Earlier this year, the Government held a consultation on licensing notices. In essence, Ministers are considering scrapping the statutory requirement for those applying for an alcohol licence to advertise that application in their local newspaper. In this debate, I intend not only to raise the concerns of my local newspapers and of those in the constituencies of many right hon. and hon. Members, but more importantly to speak up on behalf of the thousands of people in my constituency who rely for much of their local news on our local newspapers.

[Karl MᶜCartney (Lincoln) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Streeter. I thank my hon. Friend for securing this debate. May I emphasise that he is speaking on behalf of not only thousands of his constituents, but certainly mine in Lincoln, and thousands of my colleagues’ constituents across Lincolnshire who are served by the Lincolnshire Echo, and who obviously have the same concerns?

[Gordon Henderson]

I welcome the intervention of my hon. Friend—a corridor friend—and I note how subtly he plugged his local newspaper. As it happens, I was about to say that my local newspapers include the Kent Messenger, Kent on Sunday, the Sheerness Times Guardian and the Sittingbourne News Extra. I have many local newspapers in my patch.

One of the most important sections in a local newspaper is the page set aside for statutory notices. To many people, that section is second only to the obituaries column, which is always the first to which they turn. The publication of statutory notices, such as for planning and alcohol licence applications, is an important revenue stream for hard-pressed local newspapers, all of which face increased competition from the internet.

An applicant for an alcohol licence is required to publish a notice in the local newspaper. From the same date, the applicant must also display a notice prominently on the premises for 28 days. Those requirements were designed to ensure that local communities were fully informed about, and given the opportunity to object to, alcohol licence applications, or to a pub, club, restaurant or off-licence applying to change the hours of its licence.

[Gareth Johnson (Dartford) (Con)]

I congratulate my hon. Friend on securing the debate. Does he agree that notices that go into local papers can be noticed by not only objectors to applications but their supporters, so the drinks industry should not fear such notices?

[Gordon Henderson]

I welcome the comment from my hon. Friend, whose constituency in Kent is also covered by the Kent Messenger, which he forgot to mention. He is right and, as I shall say later, newspapers not only carry the notices, but articles or editorials on the subject as well.

In the Home Office document, “A consultation on delivering the Government’s policies to cut alcohol fuelled crime and anti-social behaviour”, the section on reducing the burden of regulation on responsible businesses has a proposal to remove the requirement to advertise in local newspapers. Paragraph 9.21 asserts:

“The way people consume news locally is changing, both in its frequency and form. Local residents have opportunities to learn about applications online or by notices on the premises themselves.”

I have some sympathy with that view: there is no doubt that an increasing number of people have access to the internet, and people can read notices posted in a shop window, but I have some deep reservations.

To take the latter point first, reading a notice posted on the premises depends on the person wishing to read the notice knowing that it is there in the first place. It is of course possible that somebody might spot the notice by chance, and I suppose that the immediate neighbours of a proposed venue might notice one, but they would have to be pretty observant. New alcohol outlets or changes in licensing hours can frequently have an effect on the character or amenity of a wider area than the proposed site, but those who do not live in the vicinity are unlikely ever to see a public notice and will have no knowledge of an application.

On the suggestion that people can view applications online, I accept that for many people it is true that we live in a digital age. Indeed, in 10 or 20 years’ time, every home in the land might be connected to the internet, all local newspapers might deliver online editions and everybody might have access to the public notice section of their local authority website, but we do not live in the future. This is not 10 or 20 years’ time; it is now. Today, research shows that there is a real digital divide, in that 11% of adults in Britain still do not have access to the internet. More importantly, that figure is far higher among some income groups, geographic areas and age groups, particularly the elderly. For some elderly people, the digital divide means only the space between their fingers. Ironically, they take an interest in what goes on in their community, are likely to oppose an application for yet another pub, club or off-licence, and are more likely to read their local newspaper.

[Karl MᶜCartney]

I want to back up my hon. Friend’s point. Is he aware that national, representative, independent research by GfK National Opinion Polls has found that eight times as many people read a newspaper in the past week as had looked at their council’s website? In fact, 29% of adults had not accessed the internet at all in the past 12 months.

[Gordon Henderson]

I thank my hon. Friend for drawing that to my attention. I was aware of it, but I am trying in my speech to push aside all the statistics and to deal with the issue on behalf of real people with real concerns.

Another important consideration is that communities would lose one of their greatest assets. Local newspapers

“perform an incredibly important function in our democratic system.”—[Official Report, 12 November 2012; Vol. 553, c. 575.]

Those are not my words; that is what my right hon. Friend the Prime Minister said in relation to the Leveson inquiry. Indeed, the Leveson report said that local newspapers’

“contribution to local life is truly without parallel.”

The Newspaper Society estimates that the proposal could cost the already struggling local press industry between £6.2 million and £7.9 million a year. The Leveson report recognised that many local newspapers are no longer financially viable, but local newspapers report on stories such as local politics, occurrences in local courts, local events, local sports and the like, all of which would be thought too parochial to be reported by national or even regional media. In fact, it is through local journalism that some important issues are picked up by the nationals and brought to the nation’s attention. Leveson went on to say, of the local press, that

“their demise would be a huge setback for communities and…would be a real loss for our democracy.”

My concern is about not only the effect that the proposal will have on my elderly constituents and the local newspapers that they love to read, but alcohol licensing. We must ask ourselves why we have such stringent rules about who is allowed to sell or serve alcohol. It is because alcohol is a drug, and a very dangerous drug at that. Alcohol abuse can lead to addiction and often contributes to crime and antisocial behaviour. That is why it is controlled.

The Government are determined to cut alcohol-fuelled crime and antisocial behaviour, which is a highly laudable aim that I support. However, I find it hard to understand how reducing the alcohol industry’s requirement to get licences meets the aims of the Home Office’s policy of reducing the harmful effect of alcohol abuse on society. How will scrapping the statutory requirement to advertise alcohol licence applications in our local newspapers help ensure that those who sell alcohol are right and proper people to do so? How will loosening the current regulations ensure that we clamp down on the sale of alcohol to minors? How can the community find out about new licensed premises in their area or, even more importantly, applications for longer licensing hours, if they do not have access to the internet? The answer to that last question is their local newspaper.

Research shows that people take time to browse a newspaper and that many adult regular readers read the public notices section of their local paper. Publishing applications in local papers does not require readers to institute an active search for information; it is there in front of their eyes when they open their local newspaper. Public notices in local newspapers are published in a context that no other medium can deliver—a lively and engaging marketplace, both in print and online, which offers up issues such as the licensing of pubs and clubs for regular attention and debate. As I said to my hon. Friend the Member for Dartford (Gareth Johnson), we should remember that as well as printing the advertisement, local newspapers often run feature articles about contentious applications.

Let us ask ourselves another question: does the proposal save taxpayers’ money? No, it does not, because it is businesses, not local authorities, that pay for the advertising.

[Gareth Johnson]

As the cost of these notices is not picked up by the taxpayer, there is no downside for the taxpayer in having such notices. Quite clearly, though, there is a huge downside for the taxpayer and the whole local community if newspapers such as the Dartford Messenger are not supported and therefore go out of business.

--- Later in debate ---

[Gordon Henderson]

I agree with my hon. Friend. The cost of those advertisements is not a great burden on the businesses. It might be argued that the proposal would save taxpayers’ money. Fewer people will object to the proposed nightclub because they will not know it is proposed, which will save councils’ time. However, that is a rather cynical view, and not what the Government are aiming for. Indeed, the Government profess to want the public to be more involved with local decisions.

The Home Office’s impact assessment focuses on the small cost savings to the alcohol industry that might be achieved by scrapping the requirement. That assessment puts the cost of a relevant advertisement in a local paper at £450 plus VAT. It is worth pointing out, though, that the figure is disputed by the newspaper industry, which says that the cost is much lower than that. As someone who has had an off-licence and a restaurant in the past, I can say that I would never have paid £450 plus VAT for an advert in my local newspaper. However, even if that is the cost, it is not a huge burden to a small business, and it would hardly make a dent in a larger business’s overall advertising budget.

At a newspaper conference in December 2012, the Secretary of State for Communities and Local Government repeated his intention of sticking to the commitment that he made when taking up office, which was not to remove statutory public planning notices from local papers during the lifetime of the Parliament. How is alcohol licence advertising any different from statutory planning advertising?

To conclude, removal of the notices from local papers will erode the public right to know, and will damage local democracy. It will lead to licensing matters being decided without local knowledge and debate, and to the death of many local newspapers. I hope that the Minister will take into account my points when considering the results of the consultation and drop this proposal.