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Licence - Sex Establishment

Rotherham Metropolitan Borough Council has resolved that Schedule 3 to the Local Government (Miscellaneous Provisions) Act 1982 should apply to its area.

Therefore, that legislation is the statutory basis of the control, which can be exercised by members and officers. All references in this report are to paragraphs in Schedule 3 of the 1982 Act.


In order to discuss some of the issues, it is necessary to set out some of the basic definitions.

2. Definitions

(a) Sex Establishment means a sex cinema or a sex shop

Sex Cinema means: any premises, vehicle, vessel or stall used to a significant degree for the exhibition of moving pictures, by whatever means produced, which:

(a) are concerned primarily with the portrayal of, or primarily deal with or relate to, or are intended to stimulate or encourage -

(i) sexual activity; or

(ii) acts of force or restraint associated with sexual activity; or

(b) are concerned primarily with the portrayal of, or primarily deal with or relate to, genital organs or urinary or excretory functions;

but does not include a dwelling house to which the public is not admitted.

Sex Shop means: any premises, vehicle, vessel or stall used for a business which consists to a significant degree of selling, hiring or exchanging, lending, displaying or demonstrating:

(a) sex articles, or

(b) other things intended for use in connection with, or for the purpose of stimulating or encouraging -

(i) sexual activity; or

(ii) acts of force or restraint which are associated with sexual activity.

Sex Article means:

(a) anything made for use in connection with, or for the purpose of stimulating or encouraging:


(i) sexual activity; or

(ii) acts of force or restraint which are associated with sexual activity; and

(b) anything to which sub-paragraph (4) below applies.

(4) This sub-paragraph applies:

(a) to any article containing or embodying matter to be read or looked at or anything intended to be used, either alone or as one of a set, for the reproduction or manufacture of any such article; and

(b) to any recording of vision or sound,

which -

(i) is concerned primarily with the portrayal of, or primarily deals with or related to, or is intended to stimulate or encourage, sexual activity or acts of force or restraint which are associated with sexual activity; or

(ii) is concerned primarily with the portrayal of, or primarily deals with or relates to, genital organs, or urinary or excretory functions.

A useful layman's summary of these terms is set out in the case of Westminster City v Croyalgrange Ltd (House of Lords) as:-

Paragraph 2 defines 'sex establishment' as meaning a 'sex cinema' or a 'sex shop', which are then elaborately defined by paras 3 and 4. I think it will be sufficient for present purposes to say that 'sex cinema' means premises 'used to a significant degree for the exhibition' of what the layman would call pornographic films and 'sex shop' means premises 'used for a business which consists to a significant degree of selling, hiring, exchanging, lending, displaying or demonstrating' what the layman again would call pornographic material generally, including pornographic books, magazines, video cassettes and records and articles designed for use as stimulants in the course of sexual activity.

The word "significant" requires further consideration as it's meaning is a fundamental aspect of the definitions of sex cinema and sex shop.

3. "Significant"

In the context of this legislation the only real guidance is the case of Lambeth LBC-v-Greval (1985). The High Court stated:

The word 'significant' has more than one meaning. It is capable, in some contexts of meaning 'more than trifling'. It does not have this meaning in the present context. A higher standard is set; how much higher cannot be prescribed by any rule of thumb. The ratio between the sexual and other aspects of the business will always be material. So also will be the absolute quantity of sales. Since the fundamental question is whether the establishment is a 'sex shop' (albeit as defined by para 4), the court will no doubt find it appropriate to consider the character of the remainder of the business. The nature of the display can be a relevant factor, and the nature of the articles themselves will also be material, since the definition in para. 4 which I have not quoted in full, covers a wide spectrum of offensiveness. It would be wrong to say that in law any single factor is decisive. It is up to the court of trial to decide which considerations are material to the individual case and what weight is to be attached to them'.

This means that the "significant degree" could be based on any one or more of the turnover, profit, stock levels, floor area or display area or any other means of measuring the business in sexual articles.

4. When is a Licence required?

This is set out in Para 6

6 (1) Subject to the provisions of this Schedule, no person shall in any area in which this Schedule is in force use any premises, vehicle, vessel or stall as a sex establishment except under and in accordance with the terms of a licence granted under this Schedule by the appropriate authority.

(2) Sub-paragraph (1) above does not apply to the sale, supply or demonstration of articles which -

(a) are manufactured for use primarily for the purposes of birth control; or

(b) primarily related to birth control.

Referring back to the earlier definitions this means that a sex cinema or sex shop must be licensed. In turn to be a sex shop the business must to a significant degree, sell, hire etc sex articles or other things used for stimulating or encouraging sexual activity or acts of force or restraint associated with sexual activity.

A Local Authority may waive the requirement of a licence in any case where they consider that to require a licence would be unreasonable or inappropriate.

Licences are granted for a one year period or for a shorter period as the Local Authority may think fit. Licences may be granted subject to terms and conditions.

5. The Application

Paragraph 10 lays down conditions as to the application itself. These are some:-

- must be in writing and contain any particulars reasonably required by the authority

- public notice must be given

- notice in all cases must include publishing an advertisement in a local newspaper

- where premises are to be used, a notice must be displayed for 21 days on or near the premises where the notice can conveniently be read by the public.

- the police must be informed

- any person objecting to an application for the grant, renewal or transfer of a licence, under this Schedule shall give notice in writing of his objection to the appropriate authority, stating in general terms the grounds of the objection, not later than 28 days after the date of the application.

- where the appropriate authority receive notice of any objection, under sub- paragraph (15) above, the authority shall, before considering the application, give notice in writing of the general terms of the objection to the applicant.

- The appropriate authority shall not without the consent of the person making the objection reveal his name or address to the applicant.

- In considering any application for the grant, renewal or transfer of a licence the appropriate authority shall have regard to any observation submitted to them by the chief officer of police and any objections of which notice has been sent to them under sub-paragraph (15) above.

- The appropriate authority shall give an opportunity of appearing before and of being heard by a committee or sub-committee of the authority

-

(a) before refusing to grant a licence, to the applicant;

(b) before refusing to renew a licence, to the holder; and

(c) before refusing to transfer a licence, to the holder and the person to whom he desires that it shall be transferred

- Where the appropriate authority refuse to grant, renew or transfer a licence, they shall, if required to do so by the applicant or holder of the licence, give him a statement in writing of the reasons for their decisions within 7 days of his requiring them to do so.

6. Refusal of licences

This is set out in Para 12:

12 (1) A licence under this Schedule shall not be granted -

(a) to a person under the age of 18; or

(b) to a person who is for the time being disqualified under paragraph 17(3); or

(c) to a person, other than a body corporate, who is not resident in the United Kingdom or was not so resident throughout the period of six months immediately preceding the date when the application was made; or

(d) to a body corporate which is not incorporated in the United Kingdom; or

(e) to a person who has, within a period of 12 months immediately preceding the date when the application was made, been refused the grant or renewal of a licence for the premises, vehicle, vessel or stall in respect of which the application is made, unless the refusal has been reversed on appeal.

(2) Subject to paragraph 27 below, the appropriate authority may refuse -

(a) an application for the grant or renewal of a licence on one or more of the grounds specified in sub-paragraph (3) below;

(b) an application for the transfer of a licence on either or both of the grounds specified in paragraphs (a) and (b) of that sub-paragraph

(3) The grounds mentioned in sub-paragraph (2) above are -

(a) that the applicant is unsuitable to hold the licence by reason of having been convicted of an offence or for any other reason;

(b) that if the licence were to be granted, renewed or transferred the business to which it relates would be managed by or carried on for the benefit of a person, other than the applicant, who would be refused the grant, renewal or transfer of such a licence if he made the application himself;

(c) that the number of sex establishments in the relevant locality at the time the application is made is equal to or exceeds the number which the authority consider is appropriate for that locality,

(d) that the grant or renewal of the licence would be inappropriate, having regard -

(i) to the character of the relevant locality; or
(ii) to the use to which any premises in the vicinity are put; or (iii) to the layout, character or condition of the premises, vehicle, vessel or stall in respect of which the application is made.

(4) Nil may be an appropriate number for the purposes of sub-paragraph(3)(c) above.

(5) In this paragraph 'the relevant locality' means-

(a) in relation to premises, the locality where they are situated; and

(b) in relation to a vehicle, vessel or stall, any locality where it is desired to use it as a sex establishment.

For all but (3) (c) and (d) an applicant may appeal to the Magistrates Court. This means that a refusal or non-renewal arising from the appropriate number of sex shops or appropriateness of the grant or renewal taking into account the character of the relevant locality, use of premises in the vicinity or characteristics of the shop itself must be challenged by an application to the High Court by way of Judicial Review.

An authority can therefore conclude that the number of sex shops in a locality is equal to or exceeds the number which the authority consider is appropriate for that locality. The authority can conclude that nil is the appropriate number.

However, that decision must be taken when the application in question is made taking into account all relevant considerations. For that reason alone, I am of the opinion that a "quota" cannot be fixed. Each application must be considered on its merits when it is made. Any number must be considered for the "relevant locality". A dictionary definition of "locality" is

- a district or neighbourhood

- the site or scene of something in relation to its surroundings

- the position of a thing where it is.

Ordinary useage of the word "locality" suggest a district or part of a Town. Therefore, I am of the view that the whole of Rotherham Borough Council could not be one locality. Even within central Rotherham there will be more than one locality although it may be possible to determine a Town Centre locality.

7. Non-Renewal of licences

The provisions set out above apply to above renewals as they apply to new applications. There are a limited number of cases on renewals notably for cases heard together by the Court of Appeal in 1989. These involved Birmingham, Rushmoor, Bury and Norwich. It was held that the legislation made no distinction between grant and renewal of a licence. Therefore, although the Council's had to give weight to the fact that a licence had been granted in previous years, they were still entitled to take a fresh look. Councils were entitled to refuse to renew a sex shop licence on the basis of the locality's character even though there was no change in it provided they gave rational reasons for the refusal.

In the Birmingham case a sex shop had operated in the Bull Ring for several years. An application for renewal was not granted because the sub-committee took the view that it was inappropriate for a sex shop to be located in a shopping area where families, including children would be present and because of the presence of a church nearby.

On the other hand, Bury's decision was overturned as the Court considered that an assertion that the character of the locality had changed because 26 houses had been built was irrational.

A more recent case in 1999 involved the London Borough of Wandsworth. In this case the licence was not renewed because of the change in the locality brought about by improvement initiatives. This decision was upheld despite the fact that the applicant had improved his premises.

8. Human Rights and Licensing

As with any other discretionary process, an applicant is entitled to a fair hearing. On renewal applications it should be borne in mind that a licence is a "property" and therefore Article 1 : Protection of Property will be engaged.

This article is a qualified right:

"Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.

The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties."

Interference with the use of premises will engage Article 1 but the question is whether the interference is justified. Justification is assessed by looking at whether the interference is in accordance with the law, whether the interference is in the general or public good and whether the interference strikes a fair balance between the general interests of the community and the protection of the individual's rights.

The same considerations may apply when a person objects to the grant of a licence on human rights grounds. Here Article 8: Right to Respect for Private and Family Life may be engaged. Again this is a qualified right.

1. Everyone has the right to respect for his private and family life and his correspondence;

2. There shall be no interference by a public authority with the exercise of this right except such as in accordance with the law and is necessary in a democratic society in the interests of national security, public safety or the economic well-being of the country, for the prevention of disorder or crime, for the protection of health or morals, or for the protection of the rights and freedoms of others.

Case law, suggests that the decision to grant a licence will only infringe the rights of objectors where the decision to grant a licence will lead to an inevitable and serious violation of their convention rights.

9. Policy


In R-v-Birmingham City Council ex parte Quietlynn Ltd. the Court of Appeal assented to the proposition that a local authority might adopt a policy for the determination of applications, provided that such policy does not preclude the individual consideration of application. The policy may specify areas where applications are more or less likely to succeed and/or establish location criteria relating to the character of a locality.


This is a PDF document icon Application for the Grant of a Licence to use premises as a Sex Shop (64kb)


Licensing Section
Howard Building
College Lane
Rotherham
S65 1AX

Tel: 01709 823163; 01709 823173
Fax: 01709 823154





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