PUBLICANS in Scotland are demanding millions of pounds in compensation after their trade association published figures yesterday suggesting that alcohol sales in pubs, hotels and restaurants had dropped by 11 per cent since the smoking ban.
However, Andy Kerr, the Scottish Executive’s Health Minister, immediately challenged the survey’s findings. He said: “I have not met a single person who wants to turn the clock back and reintroduce smoking in restaurants and pubs. Indeed, feedback to me has been quite the opposite.”
Only two pubs are thought to have gone out of business as a result of the ban introduced in March. But the Scottish Licensed Trade Association said that the effects of the ban had been softened by hot summer weather and the World Cup.
Only 365 of the association’s members responded to the survey, representing a tiny fraction of the estimated 10,000 pubs, hotels and restaurants in Scotland. Despite the dire predictions, anecdotal evidence indicates that most pubs and restaurants have experienced little effect on trade, while many have benefited.
Amid predictions that thousands of jobs would be in jeopardy by the end of the winter, the association called for its members to be compensated for what it called an “ill-judged and hasty government policy”.
Paul Waterson, the trade association’s chief executive, said: “This ban will put some hard-working licensees out of business and many bar staff out of jobs. We were told that business would improve as a result of the ban, something we never believed.”
He added: “If this measure is going to save millions in health costs, as we are told, it would be good to have some of this back in compensation for our members who may lose everything.”
Mr Kerr insisted, however, that it was too early to say precisely what the impact in Scotland would be. “There is no evidence to suggest that pubs, cafés or restaurants will go out of business as a direct result of the smoking ban,” he said.
According to the survey, nearly half of all pubs, restaurants and hotels said that they had suffered a decline in alcohol sales since the smoking ban; only 12 per cent said that alcohol sales were up.
Among those reporting an effect on alcohol sales, there was an average drop in trade of nearly 11 per cent. The association said that it was particularly surprised by a drop in food takings, with just 18 per cent saying that food sales were up, compared with 21 per cent who reported a fall.
However, by far the biggest effect was on regular customers, many of whom are refusing to give up smoking and are staying at home instead. Forty-six per cent of licensees said that they were seeing fewer visits from regulars, while only 5 per cent reported an increase.
Mr Waterson said: “What we’ve always said is that the traditional Scottish pubs, very often the social centres of their communities, would be under threat and I think that has been held up in these figures.”
The figures, which will be viewed with anxiety by publicans south of the Border, where a smoking ban in England and Wales comes into force next summer, were based on a survey of the association’s 1,800 members last month.
This year the trade association gave warning that a 7 per cent drop in trade would lead to the closure of about 140 pubs and 2,500 job losses. However, it said yesterday that this prediction appeared optimistic.
John Grieve, 59, landlord of the Commercial Inn in Coldstream, said that he had had a 65 per cent drop in takings within a month of the ban. “This pub is on the verge of closure right now. Why else would I be doing it if it wasn’t for the smoking ban?” he said.
However, many pubs, particularly those serving food or with outside areas, appear to be coping with the ban, and some have had an increase in trade.
