HOW TO GET A LIQUOR LICENCE FOR YOUR SHOP

The price of a Liquor Licence has dropped dramatically over the past twelve months from approximately €150,000 to €70,000. This decrease may bring the possibility of an off licence within reach of some currently non licensed retailers and this guide by solicitor, Lorraine Compton, who has practised in Liquor Licensing Law for over 25 years, is intended to give you some idea of what that entails. 

 

What planning permission is required to sell alcohol?

The Planning and Development Regulations 2005, which came into effect on 14 July 2005, mean that it is no longer possible to use a bare retail planning permission for a premises to be licensed with a full off-licence, i.e. an off licence which sells wine, beer and spirits. In other words, if you have a shop which has a planning permission for retail or supermarket use with no reference to off licence use and you decide that you would like to put an off licence into this shop, you will have to apply to the planning authorities for a change of use from retail to retail and off licence use. If you are intending to build a new store in which you wish to open an off licence you will have to ensure that the planning application you are lodging includes a specific reference to off licence use.

 

The wording of the Regulations provides that there will be no need for a change of use application to an off-licence where you intend to sell wine only, where the sale of such wine is “subsidiary to the main retail use”. What this means essentially is that there would be no need for a change of use in order to sell a small quantity of wine. However, if you were proposing to turn half your shop into a wine store this would clearly not be subsidiary to the main retail use.

 

How do I get a full off-licence for my shop?

A full spirit, beer and wine retailer's off-licence allows for the sale of wine, beer, spirits and cider for consumption off the premises. This type of licence must be obtained by way of an application to your local District Court. A person applying for a full off-licence must at the same time extinguish one existing licence and that licence can be a publicans licence or another off-licence from anywhere in the State. In order to purchase the consent of the holder of an existing licence to the extinguishment of their licence you can expect to pay approximately €70,000 at present. Notice of the hearing date of an application must be published in a daily newspaper at least three weeks before the court date.

 

What factors will MY local District Court consider in hearing an application for a NEW OFF-licence?

The Court must be satisfied as to the good character of the person applying for the licence, the fitness or convenience of a new premises, its suitability for the need of persons residing in the neighbourhood and that a demand exists for a further off-licence in the neighbourhood. If the person applying for the licence is a company, the Court will require to see the Certificate of Incorporation of the Company and also the Memorandum and Articles of Association, which the Court will check to see whether there is an appropriate power to carry on an off-licence trade. If the business is run by an individual, there must be evidence that the individual is a fit and proper person to carry on the licensed trade. You will also have to prove the title to your property in Court. The important thing to bear in mind here that the person or company who applies for the licence must be the same person as who owns the title to the premises. If you are holding the title under lease, you will also have to show the Court that the user clause in the lease specifically allows the sale of alcohol.

 

How do I know if my proposed premises is suitable?

In relation to the suitability of the premises, in licensing cases the Court must ensure that the premises complies with other laws relevant to planning and building control. You must prove to the Court that you have the required planning permission for your building and the type of business you are carrying on and that the building complies with all fire safety regulations. As indicated above, a retail planning permission is no longer sufficient for a full off-licence, you must obtain a specific planning permission for off-licence use. You will require an architect in Court to give evidence confirming that the appropriate planning permission and fire safety certificate is in place. Your architect must also prepare a set of detailed licensing plans for the Court and the Gardai. You may find that your building needs some modification before it can be considered a fit and suitable premises to be licensed. This is something you should bear in mind when considering the cost of an application.

 

THE VOLUNTARY CODE ON DISPLAY AND SALE OF ALCOHOL IN MIXED TRADING PREMISES

In order to avoid the commencement intolaw of section 9 of the Intoxicating Liquor Act 2008 which required the display and sale of all liquor (except wine) to be confined to a part of the premises which is structurally separate from the remainder of the premises and accessed by a door, gate or turnstile, the Irish retail industry has agreed a voluntary code on the display and sale of alcohol with the Minister for Justice. 

Most District Courts when considering new off licence application will require evidence that the layout of the shop conforms to the requirements of the voluntary code. Any retailer who is not familiar with the requirements of the code can either log on to the Responsible Retailing of Alcohol in Ireland (RRAI) website at www.rrai.ie or email Lorraine Compton at lorraine@comptonaylmer.ie to be sent an explanatory note and checklist to see if their premises complies.

Do I have to carry out work to my shop and buy a licence before I find out if the District Court will grant me a licence?

If you plan to make substantial modifications to your building in order to incorporate your off-licence, it is often better to apply to the Court for a Declaratory Order, which effectively is an approval in principle to the granting of a new licence. This means that you can put all the necessary proofs and witnesses to support your case before the Court and you ask the Court to grant you a Declaratory Order for a new off-licence in advance of carrying out any of the work and modifications. If the Court grants you the Declaratory Order, you then do your work and order your fittings in the comfort of knowing that you will get your licence. Another advantage of this procedure is that you can negotiate a contract with an existing licence holder to extinguish his licence conditionally on the Declaratory Order being granted. This means that you will not actually have to go through with the contract if your Court application is unsuccessful. This procedure can also be used in respect of your title to the property for example, if you are taking a lease of premises, you can take the lease conditionally on the grant of your Declaratory Order which, if it is not granted, you then need not proceed to take the lease.

 

What about objectors?

If the Gardai or local residents object to the application, this may cause a delay and an increase in the cost of the application process. The Court will not be able to hear the application on the date on which it is listed but will be given a special date for the hearing of the objectors’ case. If it is local residents that are objecting, the needs of persons residing in the neighbourhood will become a significant factor for the Court to consider. An objection may be brought on the grounds that there is already an adequate number of licensed premises in the neighbourhood or that a shop selling alcohol will be inappropriate in a particular area. 

 

Do you want to sell wine only?

For licensing purposes “wine” is defined as wine imported into the State and includes sherry. A wine retailer’s off-licence is the licence which should be obtained by convenience stores and shops for the sale of wine and sherry for consumption off the premises. Since July 2008, in order to obtain a wine licence for your shop, you must apply to your local District Court for a wine retailer’s off licence certificate, which will enable you to obtain a wine licence from customs and excise on payment of a fee of €500. This licence must then be renewed annually through customs and excises.

 

The Court procedure required to obtain a wine retailers off licence certificate is virtually identical in all respects to the procedure referred to above for a full off licence application to the local District Court with the exception that the applicant for this type of licence does not need to extinguish an existing licence ins substitution. 

 

What staffing issues should be considered before licensing a shop?

The staff age profile of many shops can be very young. Under the Intoxicating Liquor Act a person under the age of eighteen cannot sell alcohol. In practical terms, this means that if a customer wants to buy a number of articles for example, a carton of milk, a paper and a bottle of wine, then a sixteen year old operating the cash register cannot complete that sale. The sixteen year old could take money from the customer for the milk and paper and ring those sales up on the register, but a staff member over the age of eighteen must deal with the purchase of the alcohol.

 

Before applying for a licence and adapting your shop floor for the sale of alcohol, you must consider the question of staff. Would there be an adequate number of over eighteen year old employees to carry out the licence trade? The situation could be dealt with by supplying two or more separate cash registers, one dedicated to alcohol sales for older employees and the other for all sales excluding alcohol. Notices to this effect should be clearly displayed so customers are aware of which till they should be going to. You must also consider issues such as employee lunch breaks. If the only over eighteen employee on your licensed premises pops out for half an hour, then no alcohol can be sold at that time. If a particular employee phones in sick would you have an adequate staff level to stand in for them, so customers would not have to be refused alcohol sales that day?

 

© Compton Aylmer 2009

 

The Information in this document is provided subject to the disclaimer contained on the Compton Aylmer website. The material is provided for information purposes only and does not constitute legal or any other advice.

 

For further information contact Lorraine Compton, email: lorraine@comptonaylmer.ie or tel: 01 234 2678.