Could Tax be a showstopper?

THEIR voices come through loud and clear.

Opposition politicians say plans for hefty extra fees are a "tax on fun" that will deter the organisers of big temporary events like music festivals from stepping on the public stage.

Countryside representatives warn that the charges are a "kick in the teeth" for rural communities who rely on the annual cash injection of agricultural shows and the visitors they attract.

Local authorities question how the fees will be implemented and say that a move aimed at leveling the licensing playing field across England and Wales is in fact creating more confusion.

But the question is: just how could extra fees of up to £50,000 affect temporary large events, many of which form annual landmarks on the York and North Yorkshire calendar?

The Government has recently published a table of fees that will be applicable to "exceptional" events that require licensing for alcohol sales, public entertainment, indoor sport or live music.

Only events that attract more than 6,000 people at any one time will be subject to the fees that begin at £5,000 and will be enforced by the local council.

The changes are part of an overhaul of the licensing system, following a new Act of Parliament last year that, among other things, brings licensing of pubs and bars under local authority control.

Festivals that involve the building of substantial temporary buildings will mainly have to pay up and Government Ministers say the extra health and safety work needed to check these structures, sometimes done by subcontractors, justifies the cost.

Local authorities have been directed to issue the new standard charges from February 7 to cover their inspection costs, despite uproar from some quarters.

Organisers of the Great Yorkshire Show, which attracted almost 125,000 people last year, and the Leeds Festival at Bramham Park, near Wetherby, which welcomed 50,000 music fans, will see a big extra bill from the plans.

But other events, such as the York Festival of Food and Drink, travelling circuses and theme parks that visit York's Knavesmire each year and even shows like the Thirsk Festival could also be affected.

City of York Council staff fear that successful new events, such as the Spirit Of The Horse festival which will return to Bustardthorpe Field in May, could struggle under the weight of extra costs.

Despite the storm of criticism, a spokeswoman for the Department of Culture, Media and Sport told the Evening Press that the steps are essential to ensure that visitors to large-scale events are safe.

She emphasised that only particular activities needed to be licensed, while most outdoor sports, flower shows and much of what goes on at agricultural shows, will not attract any fee or require a licence.

"Under current proposals, which we have just finished consulting on, events with over 6,000 people would have to pay an additional fee, she said.

"Everyone who has ever been to a large pop festival, for example, would expect huge temporary stages and arenas to have been checked by experts. We want to make sure licensing authorities have sufficient funding to carry out their checks without having to cut corners and compromise safety.

"Under current laws all major events already have to have a licence, often at a cost of many thousands of pounds, which is set by the local authority.

"We are changing this because there is currently a 600 per cent variation in what local authorities charge.

The new system will, for many, be more affordable, and there is nothing to stop local authorities subsidising events if they choose to do so.

"We have consulted with those who have an interest in this issue and we are taking all their views into account before reaching a final conclusion. Licensing Minister Richard Caborn was meeting representatives today.

"While bars and public entertainment at such events may require a licence, it would seem unlikely that this would trigger the extra fee."

Nevertheless, many rural spokespeople remain concerned at the extra costs. Vale of York Tory MP Anne McIntosh said the tax would be a "kick in the teeth" for areas hit hard by foot and mouth disease.

She said: "This seems to be a very regrettable move on the part of the Government and seems consistent with their lack of understanding of the countryside. It will hit the bigger shows hardest, but I'm sure even some smaller ones attract 6,000 people. I do criticise them very harshly, they have really done nothing for the rural community. These shows have done everything to keep themselves going with very little help centrally."

A spokeswoman for the Countryside Alliances said the tax blow could affect the "heartbeat" of rural communities and pledged to lobby the Government to bring costs down for hard-up areas. She said: "Many areas depend on these events for social interaction and so by hitting such events in the pocket the Government could be destroying the heartbeat of local communities." Her words were echoed by Dorothy Fairburn, of the Country Land and Business Association (CLA), which has a base in Easingwold.

She said the financial health of at least 20 of Yorkshire's annual agricultural shows would be severely affected. "The agricultural show is a traditional rural community event attracting visitors from the cities too. Many shows are struggling to make financial ends meet and are increasingly dependant on voluntary helpers and sponsorship. "Some of the smaller shows have disappeared from the calendar altogether.

"These shows are a vital way of demonstrating the importance of farming and the rural economy to a wider audience, as well as being the social highlight of the year for many who live in the countryside.

"We shall fight these potentially damaging proposals," she added.

Peter Woodall, general secretary of the successful Ryedale Show, which made a profit of £11,000 last year (not as previously stated in an earlier story), said the fees will hit smaller shows the hardest. It's not just our show, we are fairly strong in terms of putting money aside over the years," he said. "But little shows just can't stand a bad year. If it rains two years in a row they are in trouble."

It is clear that members of rural groups are unhappy with the burden of extra costs, but those running big budget music events that attract hundreds of thousands of people seem less concerned.

Mean Fiddler's director of festivals, Melvin Benn, who is responsible for the Leeds Festival, said the move was "disappointing". But he added that the extra costs would not stop the massive music event going ahead in 2005.

He said: "When I talk to my colleagues across Europe, they're amazed that not only do we have to pay for licenses, but that local authorities and central government don't contribute to festivals. On the continent, they will put money into events, while in the UK, festivals happen despite the government and local authorities.G

It is certain that over the next 12 months all eyes will be on the Government to see how much they decide to charge event organisers and how much discretion is given to local authorities to help protect fragile country events and traditional shows. Ministers have already admitted that the charges "have a slightly arbitrary quality" and may be adjusted with experience. Some will be asking: "how painful is that experience going to be?"

Counting the cost

THE Department for Culture, Media and Sport consultation document states that only "exceptionally large events of temporary nature requiring premises licenses" will pay the extra tax.

Ministers have finished consulting local authorities, businesses and other interested parties on the level of the fees, but the new costs will not begin until November at the earliest.

Local authorities will be given the power to levy additional fees on events that attract more than 6,000 people at any one time which may give rise to "exceptional problems".

The whole package of fees will form part of the Licensing Act 2003, which became law last year and comes into effect in February. They may be subject to change.

They will replace fees that were set by individual authorities across England and Wales, which Government bosses said varied by up to 600 per cent.

The proposed fees are:

6,000 - 9,999 visitors = £5,000

l10,000 - 19,999 = £7,500

l20,000 - 29,999 = £10,000

l30,000 - 39,999 = £15,000

l40,000 - 49,999 = £20,000

l50,000 - 74,999 = £30,000

l75,000 and over = £50,000

Updated: 11:05 Monday, January 10, 2005