Select Committee on Merits of Statutory Instruments Eighteenth Report


A.  Draft Local Authorities (Alcohol Disorder Zones) Regulations 2008

Summary: These Regulations set out how Alcohol Disorder Zones (ADZs) are to be designated and administered and how the levy for their operation is to operate. We reported on an earlier draft of these Regulations in our 8th Report: since the Government laid the original draft of these Regulations in December 2007 they have withdrawn and relaid them a number of times. The Explanatory Memorandum laid with this draft responds to a number of the questions raised in our earlier report, but we remain of the impression that the system is unduly bureaucratic and without a clear explanation of how ADZs offer benefits additional to the other methods for combating alcohol-fuelled disorder that are already available to the local authorities. The House may wish to seek further information on how the complex charging structure is to be implemented in a practical and transparent way, and on the number of authorities likely to make use of the policy.

These draft Regulations are drawn to the special attention of the House on the ground that they may imperfectly achieve their policy objectives.

1.  The Home Office have laid these draft Regulations under sections 15-17 and 20 of the Violent Crime Reduction Act 2006 and sections 13 and 105 of the Local Government Act 2000, together with an Explanatory Memorandum (EM) and a Regulatory Impact Assessment (RIA). We reported on a previous draft of the instrument in our 8th Report of this session.

2.  Alcohol Disorder Zones (ADZs) are a manifesto commitment, enacted by sections 15-20 of the Violent Crime Reduction Act 2006. These Regulations set out how ADZs are to be designated and administered and how charges within them are to be levied. Much of the detail on how the system will work is included in guidance, now published online.[1]

3.  Although the EM is significantly better than that laid with the original draft of these Regulations, we are still left without a clear idea of how ADZs offer benefits additional to the other methods for combating alcohol-fuelled disorder that are already available to the local authorities. The RIA is that provided for the Bill in 2005, and we question how robust the Home Office's estimates of the anticipated benefits can be if extrapolated from these figures. We made further comment on these issues in our report on the original draft, published in our 8th Report.

4.  The Home Office estimate in the RIA that 30 areas will commence the ADZ process in the first year, but only 6 will move to the charging regime. The Home Office have not supplied projections for subsequent years, which they say will be reviewed after the first year of implementation. The Local Government Association (LGA), which wrote to us about the original draft of the Regulations (Appendix 1 to the 8th Report), expressed "serious misgivings about this policy", questioning in particular how they are to recover set-up costs in the anticipated 80% of cases where the issues are resolved before the charging regime can be initiated, and whether they will be liable for the costs incurred by other agencies if the income from ADZ charges is inadequate. The Explanatory Memorandum (pages 33-39) shows that other significant consultees hold the same view.

5.  We are left with the impression that the system will be unduly bureaucratic and without a clear idea of how ADZs will fit in with the other items in the local authorities' toolkit for combating alcohol-fuelled disorder. We were not clear why this policy was required in addition to voluntary measures such as Business Improvement Districts, or enforcement action such as suspending the licences of delinquent bars, or charging delinquent individuals under existing legislation.

6.  Our further enquiries failed to gain a clear assurance on two points which the House may wish to pursue in more detail during the debate:

  • the temporary nature of ADZs - the documentation states that ADZs are a temporary measure of last resort but, although Regulation 22 requires there to be three-monthly reviews of the action plan, there is no measure to set a finite time limit to this additional, if carefully ring-fenced, source of income to the authorities.
  • the charging system is arcane - as well as offering significant scope for discounts and exemptions, the basic method of calculation is highly variable. Regulation 16 sets out a formula comprising two indicators (rateable value and hours open) but these factors can first be weighted and then added or multiplied. Under Regulation 16(6) the basis of calculation can differ within the zone as long as all premises of the same description have their scores calculated in the same way and under Regulation 16(4) a higher charge may be levied if local authorities think that premises are using a higher level of non-baseline services. The level of charge is not capped as long as it reflects the actual enforcement costs, but the Guidance also states that the charge should be limited to what a viable business can pay (Chapter 6 page 23).

7.  Many of the comments on the revised Guidance still raise questions about how particular terms may be interpreted (see current EM pages 31-39). Our concern is about the transparency and practicality of this proposal: we suspect that, if implemented as set out, this charging structure could result in a large number of individual premises contesting the level of their charge in comparison with that of their competitors, which would result in a significant diversion of local authority resources from addressing the alcohol disorder problem.

Conclusion

8.  We wonder how many local authorities will make use of this policy given its complexity, and we draw the Regulations to the special attention of the House on the ground that they may imperfectly achieve their policy objectives.




1  See http://police.homeoffice.gov.uk/news-and-publications/publication/operationalpolicing/ Alcohol_disorder _zones_guid1.pdf?view=Binary Back


 
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