A council in Northern Ireland is pressing for changes to the region's alcohol licensing laws, arguing the current rules hamper competition and force businesses into unusual arrangements. The call comes as Lidl prepares to open a pub in Dundonald, a move made necessary by licensing restrictions.

Northern Ireland's liquor licensing system operates under a surrender principle, meaning new licences can only be granted if an existing one is relinquished. Anyone wanting to open a pub or off-licence must first acquire an active licence from a closed business and surrender it to the courts.

The Department for Communities has opened a public consultation on the effectiveness of the current legislation, with a deadline of June 23. Lisburn and Castlereagh City Council's environment committee is submitting a response seeking greater flexibility.

The council's submission states that the surrender principle can limit competition and that the council supports measures to encourage business start-ups. A council officer proposed an amendment to the consultation response saying the current regime restricts opportunity for competition.

Councillor Gary Hynds told the committee that the system is outdated and stifles entrepreneurship, making it difficult for newcomers due to high costs and the surrender principle. He said Northern Ireland lags behind the rest of the UK and Europe in this area and that the response should strengthen concerns over barriers to market entry.

Alderman James Baird highlighted the Lidl pub as a direct result of the restrictions. He noted that the supermarket's entry into the pub trade was driven by the licensing rules, adding that smaller venues are closing primarily due to lack of trade rather than a shortage of licences.

The Lidl pub, to be called 'The Middle Ale', is believed to be the retailer's first such venture, born out of the need to navigate the one-in-one-out system.