INIA welcomes proposals to lower SEOs

“Encouraging operators and entrepreneurs to invest in new club nights without the difficulty of exorbitant startup costs (SEOs) ultimately encourages calculated risk-takes and employment in the trade.”

A decrease in cost for Special Exemption Orders lies among proposals for reducing bureaucracy in the licensing of SMEs.

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A Review and Audit of Licences Across Key Sectors of the Irish Economy was presented to the Cabinet Committee on Economic Recovery and Jobs by the Minister for Jobs, Enterprise and Innovation Richard Bruton TD and the Minister of State for Small Businesses John Perry TD and the report forms part of Action Plan for Jobs 2012.

The report found that the system for granting SEOs is “administratively burdensome”.

SEOs are valid for one night only and must be renewed monthly via Court appearance.

“The licence and court fee cost for a nightclub open for three nights every weekend would be €62,000 per year. This is probably the highest direct fee cost identified for a single enterprise,” notes the report which recommends rationalising the application process for late-night events and reducing the use of court time in seeking SEOs.

Irish Nightclubs Industry Association Chairman Barney McGill believes that the report further highlights the underlying issue that the INIA has been making for a number of years now (especially with regard to the cost of SEOs).

“In my opinion, lowering the cost and reducing the burden of applying for SEOs would be a step in the right direction and should encourage business,” he told Drinks Industry Ireland, “Encouraging operators and entrepreneurs to invest in new club nights without the difficulty of exorbitant startup costs (SEOs) ultimately encourages calculated risk-takes and employment in the trade.”
He added that the court services have shown a significant decline in SEOs between 2010 and 2011.

“I am sure it will be the same, if not worse, if this is not dealt with a sense of immediate intent.

The trade has dealt with a barrage of difficulties over the last five yaers such as increased costs and price reductions in order to ‘compete’, staff redundancies and the phenomenon of ‘home drinking’ he said.

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