Authors of NI liquor licensing review say department’s response will do ‘almost nothing to address fundamental problems’ with system
Communities Minister Gordon Lyons has published his department’s response to the Report of the Independent Review on Liquor Licensing in Northern Ireland, including the Surrender Principle.The surrender principle in liquor licensing is a rule that requires a new alcohol licence to be granted only after another one is surrendered, effectively capping the total number of licences.The University of Stirling-led Review, which was required under section 23 of the Licensing and Registration of Clubs (Amendment) Act (Northern Ireland) 2021, was published on 21 February 2025.The authors of the review argued that the current ‘surrender’ principle is doing little to protect or invigorate the pub sector and is associated with a continuing drift of licences from pubs to shops.Among 26 wide-ranging recommendations, they proposed amending the law to prevent objections to new licence applications from potential competitors.A number of the recommendations have been accepted or partially accepted by the department.Others have not been accepted, or the department believes they are already satisfied under the current regime.In an Oral Statement to the Assembly, Mr Lyons said: “Alcohol is not an ordinary commodity, its sale is rightly subject to regulation through a licensing regime which dictates who can sell alcohol, where, when and in what circumstances.“The purpose of these controls is to ensure that the right balance is struck between facilitating the responsible sale and consumption of alcohol and protecting public health, public safety and public order. In this way, the licensing regime also plays a role in assisting our hospitality sector, in terms of its sustainability and attractiveness to customers.The minister continued: “Our licensed premises are vital to the Northern Ireland economy. They support tourism, provide employment, and serve as important social spaces in our communities.“That is why I have decided not to accept the authors’ recommendation for targeted reform of the Surrender Principle. These changes could have significant and unintended consequences on the economic viability of our hospitality sector at a time when many are operating below viability thresholds.“However, this is not a rejection of progress. The report has also provided my Department with the opportunity to consider how the regime can be further improved and modernised.“The role the licensing regime can play in supporting market diversity and innovation will also inform my Department’s response to recommendations on local producers’ licences introduced in 2022, that will be taken forward following the completion of a statutory review.”Commissioned and funded by the Department for Communities and led by Dr James Nicholls and Professor Niamh Fitzgerald, researchers spoke to more than 200 people – including interviews with businesses, police, regulators, health services, and elected officials.They also visited pubs across Northern Ireland, meeting hospitality and retail owners and staff, and carried out in-depth research in eight varied communities, involving community focus groups.Dr James Nicholls.Dr James Nicholls said: “We are disappointed that action is not being taken on concerns expressed by stakeholders, or on key issues of principle that emerged from the wider analysis. It is the Minister's prerogative to maintain the status quo, but it is unfortunate that an opportunity to address now very well-documented issues seems to have been passed over.”Dr Niamh Fitzgerald, Director of the Institute for Social Marketing and Health, said: “The Department for Communities’ response is detailed and lengthy, but contains almost no meaningful engagement with the detailed and practical recommendations set out.“The response will do almost nothing to address the fundamental and deep-seated problems that we uncovered with the current licensing system’s design, operation and impact.”Dr Niamh Fitzgerald.However, Hospitality Ulster welcomed the Minister’s statement confirming that he will “not accept” recommendations for the targeted reform of the Surrender Principle.While acknowledging the importance of a constructive debate on licensing reform, Hospitality Ulster has consistently highlighted that the surrender principle has supported a varied and independent offering, unlike in Great Britain where around 47% of pubs are owned by nine companies.It has also provided financial stability for business owners, and security for banks and financial institutions, maintaining market stability, and supporting public health objectives, it’s claimed.Colin Neill, Chief Executive, Hospitality Ulster.Colin Neill, Chief Executive of Hospitality Ulster, said: “The surrender principle remains essential to supporting an independent rich sector, providing stability for business owners and supporting wider public health goals.“The recommendations of this report only added to the uncertainty felt by hospitality operators, risking investment, jobs and the long-term sustainability of our pubs and their rejection is good news for the industry.“At a time when many pubs are struggling to survive, it is right that the focus should be on supporting those businesses, not on the hypothetical creation of new ones or expensive unnecessary quangos.“This decision allows us to focus on the real issues that are threatening the survival of pubs across Northern Ireland, and it is not the lack of additional pubs.”
