19. Written evidence from Northern
Ireland Federation of Clubs
I am writing on behalf of the Northern Ireland
Federation of Clubs the representative body of almost 600 registered
clubs in Northern Ireland having over a quarter of a million members.
I have had an opportunity to read the uncorrected
minutes of the evidence provided by Mrs Nichola Caruthers of the
Federation of Retail Licence Trade to the Northern Ireland Affairs
Committee on 8 March 2006 in connection with the issue of organised
crime in Northern Ireland.
I am aware that the members of the committee
are likely to have an input into the ongoing review of liquor
licensing legislation in Northern Ireland and because of that
I am compelled to write to you because Ms Caruthers' evidence
may have left members of the Committee with a misleading picture
of the operation of registered clubs in Northern Ireland.
Could I stress at the outside that the legislation
governing the operation of registered clubs in Northern Ireland
is different from that governing the operation of public houses,
restaurants, hotels, etc. There are two different statutes in
force, one for general licensed premises and one for registered
clubs. There are distinct and important differences in the relevant
legislation governing each sector. In particular the surrender
principle about which the FRLT are very concerned does not appear
in Club law.
For various reasons Ms Caruthers' organisation
is vigorously opposed to the changes in the licensing regime relating
to public houses, hotels and restaurants. However, the clubs Federation
is very much in favour of the proposed changes to the licensing
regime governing the registration of clubs for reasons which I
will make clearer below.
Initially however I wish to comment on the responses
given by Ms Caruthers to certain questions put to her by the committee.
In answer to question 236 Ms Caruthers responded
by suggesting that "A lot" of the registered clubs in
existence today originated as "shebeens". This is a
slur on the reputation of registered clubs in Northern Ireland.
Ms Caruthers did not provide a shred of evidence to support her
contention.
In answer to Question 247 she referred to the
issue of money laundering and implied that if the accounts regulations
currently imposed on registered clubs were relaxed then this would
open the door to money laundering activity. Again this suggestion
was wholly unsupported by empirical or other evidence.
It is a fact that the proposal to relax the
club accounting regulations came from the PSNI. In that regard
please see Pages 32 and 33 of the liquor licensing consultation
document which deals with the accounts of registered clubs. It
states:
"In 2004 the PSNI acknowledging the efforts
of registered clubs to improve their accounting procedures, proposed
that the regulations should be reconsidered with a view to relaxing
them."
"the Government believes that registered
clubs can act as a centre for the community in many areas and
provide a resource which is useful in terms of taking forward
neighbourhood renewal".
"the PSNI have advised that the climate
in which the regulations were introduced has changed for the better
and that such an intense level of scrutiny is no longer necessary".
Furthermore when Sir Hugh Orde and Mr McQuillan
gave evidence to your Committee, neither suggested that registered
clubs were currently a source or likely to be a source in the
future for money laundering activity. In fact the Organised Crime
Task Force's own paper headed "Way Forward—Serious
& Organised Crime in NI" indicates that the focus of
the taskforce's energies is presently on hotels, pubs and taxis
and nowhere is the clubs sector mentioned as a source of money
laundering activity.
Our own consultations directly with the PSNI
indicate that registered clubs in general do not cause problems
in terms of nuisance in their locality, under age drinking, racketeering,
paramilitary involvement or money laundering. In the alternative,
clubs make a massive contribution to their local communities.
Not only are they a major employer in Northern Ireland with employment
provided for approximately 6,500 people province wide but any
profits generated in registered Clubs cannot be creamed off by
businessmen but remain in the club to enhance the facilities available
giving benefits both to its members and those in the wider local
community.
The Federation believe that it is very important
to draw to the attention of your members the above facts so that
they can make a distinction between the two licensing systems
in Northern Ireland which are currently under review. It is also
vital that they are aware that the PSNI are in favour of relaxing
the onerous accounting regulations imposed on clubs.
Our Federation are strongly in support of the
proposals for changing the licensing law regarding registered
clubs. We believe the proposed changes will produce positive benefits
for clubs in their membership and we hope that members of the
committee will wholeheartedly support the said proposals in any
dealings with the liquor licence review team.
John Davidson
Chairman
8 April 2006
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