Police Reform and Social Responsibility Bill

Lord De Mauley Excerpts

Thursday 16th June 2011 Lords Chamber

[Lord Stevenson of Balmacara]

My Lords, we on this side of the Committee support the amendment in the name of the noble Baronesses, Lady Coussins and Lady Findlay. They have given us a very graphic set of reasons why it would fit well with the intentions of the Bill. We have also heard some very scary statistics. In essence, the amendment would close a loophole. The Government may, on reflection, agree that that is the case. We understand that proxy purchasing is now regarded by the off trade, the on trade and the trading standards groups as the biggest challenge facing alcohol sales. The amendment would also bring the fine into line with the current level imposed for persistently selling alcohol to children, which is why I think that it is a good way of closing the loophole.

However, we are advised that retailers are often frustrated with the lack of action being taken against those who deliberately buy alcohol to be consumed by those who are under age. Therefore, although we support the amendment and hope that the Government will consider it favourably, there needs to be a commitment to place greater emphasis on identifying these people and seeing through the legislative consequences of the amendment, which is that action must be taken. As we have heard from the previous speaker, that is an important aspect of what we are about. However, the amendment justifies itself in its own terms.

[Lord De Mauley]

My Lords, we are legislating in Clause 119 to double the maximum fine available to punish the persistent sale of alcohol to persons under 18 from £10,000 to £20,000. The amendment seeks to go further in doubling the maximum fines available for two other offences in the Licensing Act 2003, from their current level of £5,000 to £10,000. The offences relate to where a person buys or attempts to buy alcohol on behalf of a person under 18, or where a person buys or attempts to buy alcohol for consumption on licensed premises by a person under the age of 18.

At a first glance, we can see merit in the proposed new clause. My noble friend and I are absolutely with the noble Baroness in her strong feelings about the proxy purchase of alcohol for minors, and we take this very seriously. I hope that the noble Baroness will recall how we have responded to related amendments in earlier discussions in Committee. However, it is important to maintain consistency in the sentencing framework.

In addition to the two offences that I mentioned, a number of other offences currently exist for offences in the sale of alcohol to those under 18 or the consumption by those under 18 on licensed premises. They include knowingly allowing consumption of alcohol on licensed premises by an individual under 18. For all these other offences, the penalty is a maximum sentence of £5,000—level 5 on the standard scale in the sentencing framework.

In our view, however, the offence of persistently selling alcohol to children is distinct and distinguishable from the other offences in the Licensing Act and merits separate treatment in the Bill. It is far the more serious offence, not simply a one-off sale to or involving a person under the age of 18. This is reflected in the higher fine that the courts can impose for it. The offence of persistent sales to a person under 18 was created specifically to target irresponsible businesses rather than individual offenders. Indeed, there is an alternative to criminal prosecution for such premises—a punitive period of closure.

The fine for the offence of persistent sales, which stands at £10,000, was always intended to be set above the level 5 fine in the sentencing framework. The fine was high to reflect the seriousness of the offence and to reflect the intention of targeting irresponsible businesses.

In the Government’s view, increasing the maximum fine for the offence of the proxy purchase of alcohol for children, but not for others where individual adults have been responsible for providing or attempting to provide alcohol to children, could blur the existing distinctions in fines under the sentencing framework between offences targeting individuals rather than premises. In summary, we believe that the existing penalty for the proxy purchase of alcohol—a fine not exceeding £5,000—is sufficiently punitive for an offence by an individual. Yes, it is a serious offence, but not one that should be singled out for the provision of a greater fine than those for similar offences in the Licensing Act 2003 relating to the provision of alcohol to minors.

For these reasons, and having thought about it carefully, we believe that the offence of persistent sales of alcohol to children is sufficiently separate and easy to distinguish from the range of other alcohol-related offences in the Licensing Act. We want to send a clear message to irresponsible businesses that the persistent sale of alcohol to children is totally unacceptable. This is why we want to double the fine. All that I have said, however, should not be taken to mean that we will not look at the other alcohol-related criminal offences and consider whether further changes should be made in cases such as those that noble Lords have raised. Indeed, the Government are committed to a full examination of sentencing policy across the board. I can also say that we will look at the points raised by noble Lords in the context of the alcohol strategy that will be published later this year. For the reasons that I have outlined, we ask that the amendment be withdrawn.

[Baroness Coussins]

My Lords, I am grateful for the support expressed by other noble Lords for the amendment. I cannot say that I accept the logic that proxy purchase is an offence of such a different order from persistent sales to children as the Government suggest. I stress that I am not seeking to make the maximum fine the same, but just to apply the same principle of doubling that fine as a signal that the harm and potential harm behind that offence is recognised.

I do not accept that my amendment would blur the distinction between the offences. However, I am encouraged by the Government's signal that the dangers of proxy purchase will be looked at again in the context of the revised strategy that we are expecting in the autumn and of a more widespread look at sentencing policy in general. Perhaps we can return to the issue, because it will continue to cause harm, and there is a higher incidence of proxy purchase than of persistent sales to children. The issue will not go away but, for the moment, I am content to withdraw my amendment.

--- Later in debate ---

[Lord De Mauley]

My Lords, I start by thanking all noble Lords for their thoughtful and constructive comments in connection with these clauses and amendments.

Clauses 121 and 122 address problems in the system of fees under the Licensing Act 2003. Local government has been calling for action on both these points ever since the Act was introduced. Clause 121 introduces the suspension of licences or club premises certificates for failure to pay the annual fee. Currently, an authority must pursue unpaid annual fees through the courts, and there is no other sanction for non-payment. The sanction of suspension will provide a considerable added incentive to licence holders to pay the fee on time. Clause 122 introduces locally set licensing fees. The purpose is to ensure that licensing fees properly recover the cost to licensing authorities of discharging their functions under the Act. Although this clause was introduced on Report in another place, it was not a decision taken in haste. We needed time to ensure that the clause achieved full cost recovery for licensing authorities in a way that is fair to fee payers, licensing authorities and council tax payers.

There are a number of amendments in this group, and I hope noble Lords will bear with me as I attempt to give each amendment the response it deserves. Amendments 240Z and 240XC would remove the requirement on local licensing authorities to provide a receipt. Amendment 240XA aims to reduce the burden of the requirement by requiring that the receipt must be provided only if it is requested. I recognise that these amendments aim to reduce what may look like excessive bureaucracy. At the outset, it is worth emphasising that the clause requires the provision of a receipt only in a case in which a licence or certificate has been suspended and is then reinstated when the fee is paid. We do not expect this to be a frequent occurrence, as we expect licence payers to be assiduous in avoiding suspension. It is not unreasonable for the licence holder to expect clarity as to whether the licence has been reinstated because carrying out licensable activities without a licence is a serious offence. The maximum penalty on summary conviction is six months’ imprisonment, a fine of up to £20,000, or both. Amendment 240XA is a compromise solution whereby licensing authorities will be required to provide a receipt only on request. Having considered it, I believe that this amendment would actually increase the bureaucratic process in terms of the correspondence relating to whether or not a receipt is required, with, I suggest, only marginal benefit.

Amendments 240XB and 240XD would greatly extend the grace period that applies in cases of dispute or administrative error. The period of 21 days is not set in stone as a matter of principle. However, three weeks seems to us a reasonable length of time in which to resolve a dispute or administrative error. It would allow evidence to be provided that the fee has already been paid or that the supposed due date was not the anniversary of the licence. I cannot yet see a case for extending this period by five more weeks, and I would be concerned that it would considerably weaken the sanction of suspension.

Amendments 240XE and 240XG remove references in Clause 121 to the Secretary of State’s powers to prescribe fees. I understand absolutely that the intention is to emphasise the Bill’s contribution to the localism agenda. However, the references which the amendments seek to remove are cross-references to the existing powers to set fees centrally. They are a necessary part of the mechanism by which Clause 122 introduces a power for the Secretary of State to provide that fees are set locally. So the result of the amendments would actually be that the clause no longer provides for locally set fees.

Amendments 240XF and 241 would remove the reference to the licensing authority’s general costs from the description of what fees must cover. I emphasise that there is no intention that locally set licensing fees will fund the general costs of local government in the everyday sense of the phrase, which means that they could raise money from fee payers for something unrelated, such as to help build a new swimming pool or, as my noble friend Lord Astor suggested, to collect refuse. That would mean that licensing fees had become a form of discretionary local taxation. This is certainly not permitted by Clause 122 through the insertion of Section 197B of the Licensing Act, specifically subsection (3), which defines general costs and limits them to costs referable to the discharge of functions under the 2003 Act.

Amendment 241ZA also seeks to reduce the costs that can be recovered by licensing authorities through locally set fees. In this case, it seeks to remove the costs incurred by the licensing authority under the Act, but in a capacity other than that of a licensing authority. The costs referred to are those of the responsible authorities that are part of the licensing authority. These costs were intended to be taken into account by the current centrally set fees. Not to permit these costs to be covered by locally set fees would be to impose a new burden on local government and would therefore be contrary to established government practice and the intention of the clause. Our intention in introducing locally set licensing fees is that they should cover the cost to licensing authorities of discharging their functions under the 2003 Act. The current fees, set centrally, were also intended to cover the general costs as they are defined in this clause, and the defined costs of a licensing authority acting as a responsible authority. To remove these costs would mean that fees did not achieve what they are supposed to do.

Amendments 240XH and 241ZZA seek to ensure that the power to set fees locally is constrained and subject to guidance. I can assure your Lordships that we do indeed intend to make locally set fees subject to constraints. Specifically, we intend to make each fee subject to a nationally set cap, and we will consult on the level of that cap. However, to impose a requirement for the imposition of unspecified constraints would be both excessive and, I suggest, ineffective. A future Secretary of State may, for example, have a legitimate reason to utilise the power to make different provision in respect of different authorities, or not to impose additional constraints on a particular authority. However, it must be remembered that such an authority would still be subject to the limitation that income from fees equates as nearly as possible to costs.

Amendment 241ZZA introduces a duty on the Secretary of State, when providing for locally set fees, to issue detailed guidance. Again, I can assure your Lordships that it is our intention, after consultation, to issue guidance covering all these points. However, I suggest that it is excessive to require all these specifically in the clause. Section 182 of the 2003 Act already requires the Secretary of State to issue guidance to licensing authorities on the discharge of their functions under the Act. It also enables her to make such revisions to the guidance as she considers appropriate. The addition of a new duty, that of setting fees, would therefore justify such a revision, and it is our intention to do so.

Amendment 241ZB seeks to ensure that the costs of social services and trading standards, in their roles as responsible authorities, can be taken into account within locally set fees even when they are located in an upper tier authority. Currently, the clause has the effect that these costs are recoverable only in a single tier authority, such as a unitary authority. I thank noble Lords for drawing attention to this. I know that many noble Lords will be concerned about the addition of any further costs that will be recovered by fees.

It should be noted that the amendment specifies that the costs that should be recovered are those of these two public bodies, but only in their roles as responsible authorities: for example, in considering applications and, in rare cases, applying for a review. This is expected to be a very marginal cost in the context of overall fee income. It does not incorporate the wider costs of these public bodies in dealing with licensed premises. We intend that locally set fees should cover costs that are not covered by the current centrally set fee levels. For example, the costs of the environmental health authority in respect of its wider statutory duties connected to licensed premises are not covered; only the marginal costs that arise from the 2003 Act are. Having said all that, I see sense in the intention of Amendment 241ZB and, if I may, I shall reflect on it further.

Amendment 241Y seeks to remove the provision in the Bill for regulations to be made providing that club premises certificate holders can make a free minor variation before a late-night levy is introduced in their area. It is consequential on a number of amendments that have the combined effect of removing members’ clubs from the application of the late-night levy. I hope that we will be able to discuss it later, alongside those amendments. For the reasons that I have given, I therefore ask that noble Lords do not press their amendments today.

[Lord Clement-Jones]

My Lords, briefly, before my noble friend replies on her amendment, I welcome the Minister’s useful clarification of the definition of general costs. I shall certainly reflect on that before the next stage. The technical references were extremely helpful. The Minister was also very helpful in talking about the guidance on how fees are calculated and will be dealt with by local authorities.

I welcome the support of the noble Lord, Lord Brooke, for my amendment. It was like the first swallow of summer or something of that sort. On my Amendment 241ZZA, the Minister said that guidance will be published, which is helpful. However, as far as one can see there is no appeal mechanism in the proposed new section that is already incorporated in the Bill. Is it possible for guidance to deal with how that sort of thing should be dealt with as well?