Michael German: "New licensing laws are hitting small businesses"

5.34.35pm BST (GMT +0100) Thu 28th Jul 2005

Stringent new licensing regulations brought in by the government are putting the viability of community corner shops in South Wales at risk.

Businesses wishing to sell alcohol have until the 6th of August to apply for a new license. However, only 911 out of a possible 2402 premises throughout Monmouthshire have so far submitted their forms. Increased red-tape and higher licensing charges have been blamed for the low numbers of applications received by councils.

Michael German, AM for South Wales East, said: "The Government has introduced a system that is overly-bureaucratic and imposes disproportionate costs on small businesses. In contrast to pubs and clubs, which make most of their profits from the sale of alcohol, grocery shops only sell limited amounts of alcohol, yet they have to pay the same amount in licensing fees."

Local shop keeper Ann Kitcher of Bryn Stores in Merthyr Tydfil commented: "The new licensing procedure is much more complicated than the old one. We had to provide scale drawings of our premises, in addition to completing the 20-page application form. The council had to return forms to us twice before they were satisfied with them."

Local shops have been hardest hit by the new licensing system

The cost of the license has increased from £35 for three years to £191, £100 of which is now payable every year.