Inside Track By Mark Stretton
Regime change is never easy. A great deal of uncertainty surrounds two new pieces of law, covering the sale of alcohol and smoking in public places, respectively, both of which have obvious and dramatic implications for the licensed retail and foodservice industry. The first, and more advanced, is the Licensing Act 2003, due to "go live" in November. The Tories are primed, according to reports, to use an obscure parliamentary procedure known as "praying" in a last-ditch attempt to block reforms. This will have the effect of forcing another Commons vote on the Act within the next few weeks. Both the Tories and Liberal Democrats are preparing to vote against the Act en masse, which combined with rebel Labour backbenchers, could derail the whole Act. It is unthinkable that, after so much industry investment – both in time and money –in preparation for this new era, the whole thing could be canned. It remains to be seen if this will be the case but it is worth reflecting how we got here. Part of the problem has been the execution of these laws, chiefly the woeful communication regarding the aims of this legislation, namely the balance between liberalisation and control. In particular the myth of widespread and unchecked 24-hour drinking has dogged the process, prejudicing public support. There has been a communication vacuum, which has been filled by the Tories, Liberal Democrats, the media, police, legal and medical professions, all of whom have spoken out against reforms, displaying various degrees of ignorance regarding certain aspects of the Act. Underlying these arguments has been the niggling notion that the industry is profiting from "binge drinking" and fuelling alcohol-related disorder. It is now widely accepted that there is something of an image problem. Fresh thinking is needed to counter this perception. For those involved in the sale of alcohol, particularly pubs, bars and nightclubs, image is everything. Social responsibility is perhaps the biggest single challenge facing this market. As one leading executive recently said, if positive steps are not taken to readdress the balance "we will be divided, sliced and slaughtered". It is time to grip the issue aggressively. While the trade bodies have almost certainly been working feverishly behind the scenes lobbying those that matter, their public relation offensives have proved inadequate. Alan Bowes, executive chairman of London & Edinburgh, has called for the formation of a "multi-million pound" fighting fund to finance an advertising and PR campaign. A wide range of coordinated initiatives should be explored. As has been written here before, companies should consider mirroring the media industry’s formation of a social responsibility forum, where the leading players come together to pool best practice, form operating policies and develop effective communication strategies. The issue of problem drinking and related disorder is not going away. It is why M&C Report, together with sister title The Morning Advertiser, is organising a seminar involving leading executives, politicians, police and local government. As the clock counts down to a new licensing era, this issue is reaching a critical phase. It is to be hoped that moves to de-rail this Act are not successful but whatever happens action is needed. The scale of the task should not be underestimated. Smoking is also back on the agenda. It looks like the government, with the election out of the way, has hardened its line. Current proposals will be scrapped with Patricia Hewitt putting forward plans for an outright ban. The White Paper fudge, which proposed a ban for venues that served food but an exemption for drink-only pubs plus member’s clubs, has served its purpose. The prospect of wet-led, smoky, working-class boozers becoming more toxic post a "ban" while food pubs clean up, is simply not tenable. And the industry has said as much. It will be interesting to see if the government yield’s to the industry’s plea for more time. This is a massive upheaval, which should be reflected in the timelines. Speakers already confirmed for this November's Alcohol retailing and Social Responsibility include Tim Martin, the founder and chairman of JD Wetherspoon, Professor Ian Gilmore, chairman of the Royal College of Physicians Alcohol Committee, Steve Thomas, chief executive of Luminar, Tim Rycroft, government affairs director at Diageo, Mark Jones, executive chairman at Ultimate Leisure and Jon Collins, chief executive of BEDA. For more details call Elizabeth Brown on 01293 867612. As part of its wide-ranging Responsible Drinks Retailing campaign, William Reed Publishing and its leading business journals for the on and off trade this month announce a major new initiative aimed at tackling one of the biggest challenges facing the drinks retailing industry. On 22 November M&C Report, The Morning Advertiser (MA) and Off Licence News (OLN) will hold the first Alcohol Retailing and Social Responsibility seminar pulling together key figures from the industry, from government, police and local authorities. The aim will be to objectively discuss and debate the issues surrounding drinks retailing and to highlight the measures that the industry should now be contemplating to counter the current negative image that has engulfed parts of the hospitality market. Speakers already confirmed for this event include Tim Martin, the founder and chairman of JD Wetherspoon, Professor Ian Gilmore, chairman of the Royal College of Physicians Alcohol Committee, Steve Thomas, chief executive of Luminar, Tim Rycroft, government affairs director at Diageo, Mark Jones, executive chairman at Ultimate Leisure and Jon Collins, chief executive of BEDA. The conference will be followed by the Responsible Drinks Retailing Awards, held jointly between the MA and OLN, recognising best practise across both the on and off-trade. M&C Report wholly supports this awards programme not because of any moral stance but simply because social responsibility - and dealing with Britain’s perceived drink problem - has emerged as perhaps the biggest single challenge facing pubs, bars and nightclubs. All operators in this market have to face up to the pressures from government, the public, and their investors to act responsibly - and, almost as importantly, to be seen to be acting responsibly - in the way the run their businesses.