Policing and Crime Bill

My Lords, I thank all noble Lords who have participated in this debate and note the strength of feeling in a number of quarters on these issues. Amendments 36, 37, 43, 52, 53 and 54 seek to address issues related to the optional nature of these provisions and the exemption of infrequent events. I am sympathetic to the concerns expressed by noble Lords on this matter. However, the Government continue to believe that it is appropriate that these provisions remain optional for local authorities and that they contain an exemption for infrequent events. Keeping the provisions optional for local authorities recognises that while the presence of sex establishments can raise concerns in many communities, the issues are not necessarily relevant to all communities. A number of local authorities chose not to take action under the provisions of the 1982 Act and some local authorities may choose not to take action under the provisions of the Bill. However, I listened with care to the contributions of noble Lords, particularly those of the noble Baronesses, Lady Gould and Lady Gale. I appreciate the concern that these provisions could provide a postcode lottery for local people. Therefore, I commit to bring forward an amendment at Third Reading to address concerns regarding the lack of a statutory duty on local authorities to consult with local people on adopting these powers when they come into force. This, of course, means consulting with the police and local communities. I hope that this will overcome the fear that lap-dancing establishments can be established against the wishes of, or in ignorance of the wishes of, local communities. On Amendment 43, we do not agree that premises which provide relevant entertainment on a one-off or infrequent basis, such as a strippergram booked for a birthday party in a pub, should be classed as sexual entertainment venues and regulated in the same manner as lap-dancing clubs that offer relevant entertainment every night, or even every week. For this reason, the exemption should remain for such infrequent events, which will continue to be regulated under the Licensing Act 2003. Amendment 52 also appears to address concerns regarding the exemption by introducing the concept of a personal licence. However, this amendment is unnecessary and is not workable in practice. Currently, sex establishment licences, although granted to a named individual, regulate the provision of entertainment or services at particular premises. Therefore Schedule 3 to the 1982 Act is designed—as the noble Lord, Lord Brooke, said—for granting or refusing licensing and issuing of conditions based on the location and character of known premises. While the local authority could impose general conditions on a personal licence, it would be unable to impose conditions specific to a particular premises. On the approach proposed by the noble Baroness, a person would need both a personal licence and permission under the 2003 Act if they wished to provide more than six events at premises that were not sex entertainment venues. This would be likely to cause significant confusion about which legislation was responsible for regulating the provision of relevant entertainment in these circumstances. While the Government firmly believe that the exemption for infrequent events is a proportionate measure and should remain in Clause 27, I can reassure noble Lords that should it become clear that it is being exploited in a way that is obviously against the wishes of local people, they will have the power to tighten the exemption or remove it altogether. Amendment 42 would render these reforms virtually useless and prevent local people having a greater say in the regulation of many existing venues and other venues that may open in the future. That amendment goes even further than the changes that the industry has been calling for. It is the Government’s intention that where a local authority adopts this legislation, all venues in the area offering relevant entertainment should be regulated under Schedule 3 to the Local Government (Miscellaneous Provisions) Act 1982. The transitional arrangements mentioned by the noble Lord, Lord Skelmersdale, will set out the process for migrating existing businesses to the new regime set out in secondary legislation. In line with the commitment we made in Committee the Government are publishing a consultation on these arrangements that outlines proposals for dealing with existing lap-dancing clubs. The Government are sensitive to the concerns of industry about the impact that these reforms may have on existing businesses. Noble Lords have expressed these concerns today and in Committee and we have met with industry representatives on this matter. However, we are conscious that the concerns of industry must appropriately be balanced with the legitimate concerns of local communities, which these reforms aim to address. Therefore, given that we know of instances whereby under the existing regime lap-dancing clubs have been allowed to open despite widespread local opposition, we are proposing that all lap-dancing clubs be required to apply for a sex establishment licence if they wish to provide relevant entertainment. This will give local authorities when they adopt this legislation the necessary powers to deal with local concerns regarding existing businesses. We recognise that existing businesses will need time to comply with the new regime. Therefore, we are proposing a transitional period of one year from the time that the local authority adopts the legislation. During that period, existing venues will be allowed to continue to operate under their existing permissions so that they have time to comply. In the consultation paper, we made clear our intention that the new category of sex establishments introduced by Clause 27 will replace the existing and largely overlapping category of sex-encounter establishments which applies in the London boroughs, where they have adopted the relevant provisions. We intend to repeal the sex-encounter establishment category in its entirety, using the power to make consequential provisions under Clause 111. Clearly, we would not wish to have two definitions that attempt to regulate the same or similar types of activity in this area. The consultation will run until 14 December and we will look carefully at the responses before making any final decisions. I hope that I have explained why the Government are not able to accept Amendment 42 and that noble Lords will not move it. The Government also have reservations about Amendments 45 and 46. As I explained in Committee, requiring businesses to renew their licences on an annual basis will not be overly burdensome or result in premises losing their licences arbitrarily. Sex shops and sex cinemas are already subject to annual renewal requirements and I am aware of no evidence that this has been problematic. It is true that, where the legislation is adopted, lap-dancing clubs and similar venues will be required to apply for a sex establishment licence and will have to renew that licence each year. The potential costs to industry are set out in the impact assessment that we have published. However, while it is right that we acknowledge the potential impact on business, we should not forget the benefits to local communities. Lap-dancing clubs offer entertainment that is fundamentally different from that offered by other entertainment venues such as nightclubs and pubs. The annual renewal process ensures that local people have the opportunity to raise concerns on an ongoing basis and allows the process of considering a licence for renewal to take into account any changes in the context or circumstances of communities. The grounds on which local authorities can refuse to renew a licence are set out in paragraph 12 of Schedule 3 of the 1982 Act. If a local authority decides to refuse to renew a licence on any grounds, it must explain the reasons for doing so. There is no evidence that a local authority will refuse to renew a licence unless it has good reason. However, if an applicant is not satisfied with the reason provided, they can seek a judicial review. On these grounds, I hope that noble Lords will not press Amendments 45 and 46. I will respond to a point made by the noble Lord, Lord Skelmersdale. We will consider whether to use the power to remove the exemption in consultation with local authorities. If they indicate that there is a serious problem with the exemption, we will be able to use that power to ensure that problems are not replicated across the country. I hope that that meets with the approval of the noble Lord. The decision to change the name to "sexual entertainment venue" goes some way to meeting concerns. It would be difficult to claim that lap-dancing clubs do not have a connection with sex, at least in the male mind, in the same way that "sex cinema" and "sex encounter venue" do. However, "sexual entertainment venue" is a more neutral term that I hope will be less offensive and avoid giving the impression that sex is for sale at those venues. I hope that the amendments put forward by the Government address the concerns that have been raised by noble Lords.