Commercial Law - News

Drinks industry could face tougher regulations

Wednesday, September 10th, 2008

The Department of Health (DoH) has begun a public consultation which could result in the alcohol industry’s current voluntary code being replaced by tougher, mandatory regulations.

The current voluntary code, the Social Responsibility Standards, was introduced in 2005 to coincide with the implementation of the Licensing Act. Its aim is to promote good practice and it has been signed by 16 trade associations.

An independent review of the effectiveness of the code was carried out for the Government by KPMG.

The review found that those within the industry felt too much blame was being placed upon them for the harm caused by alcohol. They felt it was a multi-faceted problem with an underlying cultural issue.

However, those outside the industry saw the code as having little impact because it is not enforceable. They felt it was not fit for purpose and was overridden by commercial considerations.

KPMG conducted observation studies over a five-day period of nearly 600 premises in eight different locations across England. The report says: “We have concluded that currently the Standards are not being consistently adopted and applied across the whole of the alcohol industry.

“In the current trading climate the commercial imperative generally overrides adherence. Inducements to people to drink more and faster, to allow under-age people entry to restricted premises, and blatantly serving intoxicated people are evidence of this conclusion.

“The Standards are currently having negligible impact in either reducing bad practice or promoting good practice on the ground. They lack focus, they are a confusing mix of regulatory and voluntary provisions, and they are not cross referenced to the Licensing Act.

“In driving responsible practice they are ineffective because of a lack of consistent monitoring and enforcement.

“We have concluded that the Standards should be strengthened and enforced more effectively by Government, industry and other agencies working more closely in partnership at a national and local level.”

The consultation proposals put forward by the DoH would oblige retailers to offer drinks in small as well as large measures, restrict happy hours and irresponsible promotions, and display alcohol in separate areas in off-licences – not by the checkout.

They would also need to give point of sale information on units and train staff to recognise and refuse alcohol to underage or drunk customers.

Health Minister Dawn Primarolo says the Government now wants the views of the public, the drinks industry and other interested parties.  “There are significant choices to make, for example, on whether industry should do more, whether they have the right incentives, and what the Government can do to reduce alcohol-related harm.”

Contact Paul Slot, our licensing expert, for practical advice on all aspects of pubs, clubs and restaurants licensing or visit our special pubs and clubs licensing website.


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