A report recommending the deregulation of the off-licence trade was handed to the Minister for Justice, Mr O'Donoghue yesterday and is to be presented to Cabinet shortly. Under the new system, the Minister would decide on the fee for a new licence. It is understood the commission failed to come to a consensus on the content of the report and that it contains many notes of dissension. Some members were strongly opposed to the liberalisation of the sector and, if it were to be liberalised, wanted a very significant price put on the new licences.

Other members who were in favour of liberalisation wanted no impediments to entry to the trade which were additional to those which apply to retail outlets generally and were opposed to any charge for the new licence.

In the end it was decided that deregulation would be recommended but with a charge on the licence. The commission chose not to suggest a price for the new licence but stated that it should be "meaningful".

It is understood the report also recommends that retail outlets in small rural towns should be able to buy licences to sell beer, wine and spirits for reduced rates. This is so that established shops in locations which might not support an off-licence could devote a few shelves to alcohol.

The report will now be considered by Mr O'Donoghue before being presented to Cabinet, perhaps as early as next week.