7. Written evidence from the Federation
of the Retail Licensed Trade NI
The Federation of the Retail Licensed Trade
(the Federation) is the only trade association which represents
the members of the licensed trade in Northern Ireland. It represents
well over 1,000 licensees, over 70% in total. The licensed trade
in Northern Ireland employs around 34,000 workers (approximately
5% of the workforce), accounts for wages of around £300 million/year,
and the value of the alcohol market in Northern Ireland is around
£950 million/year. It thus provides a significant level of
employment and subsequently income tax to the UK Treasury, and
a considerable level of tax through alcohol sales. In addition,
the sector contributes around £2 million/year to the arts,
sports and charities.[5]
The Federation would make the following points—
Organised crime, in the form of protection money
or "donations" and racketeering, is something which
everyone in the trade is aware goes on, but which is never spoken
about, other than occasional anecdotal stories.
Direct areas where the licensed trade is affected
are as follows—
— Shebeens (illegal drinking
venues)—our members tell us that these are widespread throughout
Northern Ireland
— Taxis selling alcohol—there
are a number of organised taxi delivery/sale operations which
operate on a large scale, either selling directly out of the boots
of cars, or delivering to homes through the night; deliveries
to the underage are a particular problem
— Robberies (of off-sales and
of drinks delivery consignments)
— Counterfeit alcohol—there
is a specific problem with counterfeit Smirnoff; counterfeit product
is sold widely from markets, door-to-door, from ice-cream vans
etc. It can be poisonous and sales to the underage are common.
Bottles and security features are changed from time to time, but
the counterfeit product can be exceptionally good.
— Door supervisors—Northern
Ireland does not fall under the Security Industry Agency, so it
is left to the 26 local councils to regulate door supervisors
(or not) via the Entertainments Licence. The Federation provides
training but councils have varying requirements surrounding vetting,
police record checks etc. Some councils are active, most are not.
Licensees can come under pressure to employ particular individuals
(with paramilitary and/or criminal links) and, in the absence
of something akin to the SIA, it can be difficult to refuse.
The trade fears that the current Department
of Social Development consultation Liquor Licensing: The Way
Forward has not taken account of the potential for the proposed
changes to increase avenues for organised crime, both "political"
and "conventional", to flourish further or to launder
money:
For example, the proposal to remove the cap
on the number of liquor licences will make it easier for anyone
to enter the trade and set up new premises and thus enter a largely
cash business, and the deregulation of registered clubs, including
the repeal of the Registered Clubs Accounts Regulations which
were set up 10 years ago to ensure that money couldn't be laundered
through clubs.
A question on the issue was tabled in the House
of Lords by the Lord Maginnis of Drumglass. It reads
"To ask Her Majesty's Government whether
the Assets Recovery Agency in Northern Ireland has been consulted
about the proposed abolition of the surrender provision for liquor
licences in Northern Ireland; and whether they have made any assessment
of the impact of the abolition on the level of criminal activity.
[NIO] (HL3273)"
The Federation feels that the response from
the Secretary of State for Northern Ireland was less than satisfactory.
Given the specific expertise of the Assets Recovery Agency or,
indeed, the Organised Crime Task Force, in this area we are concerned
that it was not directly consulted in the drafting of the strategy.
The licensed trade in Northern Ireland currently
faces immense pressure—with a smoking ban a year away, a
licensing review proposing wholesale changes to the fundamental
nature of and investment in the industry, increasing margin and
business pressures from competition from supermarkets. All of
this has lead to a real uncertainty and lack of confidence in
the industry. Licensees are understandably concerned that they
face these business pressures, whilst the illegal trade apparently
continues to grow and flourish.
Nicola Carruthers
Chief Executive
2 March 2006
5 Sources: NI Statistics & Research Agency, Cenus
of Employment 2003; DHSSPSNI "Reducing alcohol related harm
in Northern Ireland"; MINTEL 2004. Back
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