Clause 64 - The additional conditions for
Licensing Bill [Lords]
3:15 pm
Dr Kim Howells (Parliamentary Under-Secretary, Department for Culture, Media & Sport; Pontypridd, Labour)
Clause 64 sets out the additional conditions that a qualifying club must satisfy for the supply of alcohol. Additional condition 3, which is set out in subsection (4), is that
''no arrangements are, or are intended to be, made for any person directly or indirectly to derive any pecuniary benefit from the supply of alcohol by or on behalf of the club to members or guests, apart from—
(a) any benefit accruing to the club as a whole, or
(b) any benefit which a person derives indirectly by reason of the supply giving rise or contributing to a general gain from the carrying on of the club.''
Amendment No. 304 would undermine completely the basis for distinguishing between the use of licensed premises and qualifying club premises. A key reason for preserving the special position of the club movement is the way alcohol is supplied to members of clubs. The critical point is that they club together to purchase the stock. They do not purchase alcohol from the club—as members, they already own it—but it is supplied to them by or on behalf of the club. It is true that money changes hands, but that is to ensure equity among members in the distribution of the alcohol that has been purchased for club use. I shall give an example to make that clear. The procedures are designed to be fair to Joe, who drinks six pints a week, and Harry, who drinks 10. Obviously, they are both moderate drinkers. No profit is made by anyone involved in the supply.
Amendment No. 304 would allow a profit to be made and would render a qualifying club indistinguishable from a commercial entity applying for a licence in respect of any premises such as, for example, a pub or a nightclub. It would remove entirely the justification for special treatment under the Bill. It would allow anyone to set up as a proprietary club and to benefit from the lighter controls that apply to qualifying not-for-profit clubs, from which they benefit as a result of their special nature. The amendment would allow clubs to sell alcohol without a personal licence holder or designated premises supervisor. They would be in direct competition with pubs and other licensed premises, from which they would be more or less indistinguishable.
The condition that prevents an individual from making a profit from the supply of alcohol is a key safeguard for local residents, protects the industry from unfair competition and, critically, provides a basis for the preservation and continuation of the special status of not-for-profit qualifying clubs. On that basis, I hope that the hon. Gentleman will withdraw the amendment.