Call To Allow 'Responsible' Price Promos In Pubs, Bars And Clubs

Pricing restrictions on pubs, bars, and clubs in Jersey should be removed and the responsible use of promotions should be allowed, according to the competition regulator.

The JCRA has carried out a review into alcohol pricing and promotions.

It was requested by the Attorney General 'following changes in the market and in international best practice.'

The on-licence trade, like pubs and bars, aren't currently allowed to offer 'buy one get one free' deals.

Off-licences can't sell alcohol below the Minimum Unit Price (MUP) of 50p per unit.

A market study found that Jersey's pricing restrictions are 'unique' and restrict competition - and that prices in pubs, bars and clubs were 'relatively higher' in Jersey.

It also found that removing those restrictions and using promotions 'responsibly' could encourage competition and benefit consumers, from an economic perspective.

The regulator has recommended removing or easing restrictions on promotions - saying they limit their ability to complete or attract certain customers.

The study included looking at similiar markets, including in Guernsey and Scotland.

"The Guernsey experience showed that responsibly applied price promotions support competition without leading to excessive drinking or anti-social behaviour.

The Scottish experience was one of higher prices and lower consumption following the introduction of MUP (Minimum Unit Pricing). It was also associated with lower alcohol-specific deaths and had limited unintended consequences."

The JCRA is also recommending other ways of not distorting competition as much - like, for example:

• Raising alcohol duties
• Revoking the licences of businesses that don't use promotions responsibly
• Extending minimum unit pricing to pubs, bars, and restaurants
• Offering more education on the risks associated with excessive drinking

The advice when it comes to off-licences is to review the impact of minimum unit pricing after the Covid-19 pandemic has passed to cover the economic, health, and social impacts.

"I welcome this report and thank the Jersey Competition Regulatory Authority for their work, as well as all those who contributed to the process. The report has set out a number of findings and recommendations that will need to be taken into account when considering whether changes should be made to the Guidance.

It is important to highlight that the Report concerns economic analysis, and that other considerations, such as public order and crime prevention, also need to be taken into account in relation to the Guidance.

I will be referring the Report to the Licensing Assembly for its consideration in due course." - Mark Temple QC, Attorney General.