LEADERSHIP BRIEFING - IRRESPONSIBLE DRINKS PROMOTIONS

Issue - As a result of competitive pressure, the retail price of on-licence alcohol in Oldham Town Centre has been dwindling. This issue has become particularly acute over the Christmas & New Year period. The credit crunch would suggest that it is not going to be a short term issue and heavy discounting is still taking place. Some bars have run special promotions, which have attracted extensive local and national media coverage and comment.

Features - The features of the drinks promotions that we are concerned with are where alcohol retails for prices less than 75p per alcoholic unit (i.e. a pint with 2.5 units in, would be less than £1.88); `as much as you can drink for (say) £8' offers; `buy one get one free' or half price drinks. We are particularly concerned about the effect of these between 9pm and 5am.

Powers - The Local Authority does not have any powers to control the price of alcohol products. However, the Authority does have powers to ensure that appropriate operating procedures and preparations are in place to ensure public safety and prevent crime, disorder and public nuisance when such promotions are in place. It is also important to ensure that any action taken does not create a market distortion.

Proposal - It is proposed that the licences of all 19 Town Centre late night venues be reviewed so that additional conditions can be added. These conditions would apply when (and only when) an irresponsible drinks promotion (defined) was running. During this time, bars would be required to have a bar queuing system in order to slow down the consumption of alcohol (think of this as something similar to a post office queue) and take action to ensure that appropriate door supervision and police resource was available to deal with any problems.

Implementation - There is a statutory process that must be followed, which would be instigated by the Trading Standards Service. As soon as that statutory process starts, the issue becomes in the public domain and, given the issues, requires a careful narrative to be prepared around media and PR.

Risks - Although government have hinted in their guidance that this may be an appropriate course of action, no other authority has ever done it (to our knowledge). It would be unprecedented and, therefore, there would be significant interest in the precedent that it might set. The local trade may be more compliant, but it is likely that the national trade, their representative bodies and other interested parties would be fierce opponents of such action. We would also face criticism (potentially) from those that advocate a free market approach and be asked questions about why, at a time of economic strife, we are seeking to burden lawful business with more regulation.

It would seem probable that some of the affected bars (many of which are owned by national chains) would challenge the reviews through the court process, which - whilst we would have subsequent opportunities to withdraw - may prove costly and any withdrawal difficult to manage reputationally. That having been said, our line to Government should be that the route cause of this problem is poorly thought out legislation, that we are trying and struggling to make work in practice.

Alternative - The only viable and lawful alternative is to do nothing (other than continue with our line that these promotions are irresponsible). That approach has its merits, but might not be politically acceptable.

Tony Allen

Group Manager (Trading Standards & Civil Resilience)

5/2/09