It is clear that the industry (and particularly those of us who operate on our high streets) is entering a potentially turbulent time. The changes in the licensing laws, which most of the big pub groups actively sought and lobbied for, are upon us. However, as an industry we seem ill prepared, as the pro-change leadership is invisible on TV and the media. I have been vociferous about my opposition to the uncapped expansion in licensing hours and I will continue to be so.
No-one can deny that for many pubs some extension of hours will be beneficial to customers and licensees alike (get ready for the rent rise though). However, to follow this liberalisation through to high streets in town and city centres is flawed.
Spend any time in our busy urban centres on a Friday and Saturday night and it becomes difficult to deny that there are under-age and binge-drinking problems that lead to acts ofviolence related to drink. All of us have our part to play indealing with this major public issue. Incidentally, the Home Office define serving under-age 16 and 17-year-old customers as serving "children" on that basis we have child workers and child soldiers!
There are numerous ways of us taking a lead in dealing with these issues from minimum pricing (of which I agree), tomandatory paid-for policing (of which I do not), but mostenlightened operators have a strong contribution to make to solving this problem in partnership with national and local government and, of course, the police.
And solve it we must, ahead of licensing liberalisation for if we fail to solve it and let's say crime and disorder go up, then a draconian alcohol tax probably looms.
It is, therefore, crass at this time to massively extend our licensing hours without understanding the consequences. If every pub in the UK extends their hours by say four a week, then we are creating the equivalent of more than 3,000 new pubs in the UK. This complete over supply, particularly on our high streets, will lead to many things:
Firstly, it will mean downward pressure on pricing at a time of the closest scrutiny yet of our industry. You are already seeing this with the likes of Mitchells & Butlers cutting prices in its high-street sites across the board. This is very disappointing given M&B's role as the UK's most responsible drinks retailer others will be forced to follow.
Secondly, rogue traders will multiply and with that rogue promotions. And I'm sorry, but the recently published BBPA (British Beer & Pub Association) code of conduct on promotions is both irrelevant and meaningless in the control of these. It's a compromise document when, frankly, we needed leadership.
Thirdly, and most damaging, there will be a certain increase in alcohol consumption on our high streets and consequently the potential for more not less disorder.
So we are left with a scenario of increasing high streetcompetition through longer hours and lower prices, and also no idea how to disperse customers safely between 3am and 5am. How do we get them home safely let alone our staff? Towncentres at 3am are devoid of the transport infrastructure that London takes for granted. Forget those ridiculous analogies of theatre-goers all gasping for a drink late at night. If anyone really believed that then why not just give theatres a late licence?
The truth is we can look ahead to more lurid headlines, more calls for intervention in our industry, more calls for tax rises in our sector to pay for policing and all because our industry leaders failed to look to safeguard the industry for the long-term, in favour of short-term profits.
Finally, what do I propose to do to help in the final weeks before we enter this brave new world?
Well, I would limit extra hours to one hour beyond currentterminal hours and cap pub (not nightclub) licences at 2am, at least until we see the effects of the changes to come.
More controversially, I would raise the age for legallypurchasing alcohol from all off-licences to 21. Our industry, at least, sells alcohol in a controlled environment and deals with its rogue customers. Supermarkets do not and that should be reflected in an age differential.
Finally, I would urge the Government to start the journey ofcultural change for young people, educating them to the benefits of our great industry, but make sure that they understand that they have personal responsibility for their own behaviour.
Mark Jones is the chief executive of Yates Group