The AERC's History and how it Operates
Origins
The Council owes its origin to the Licensing (Alcohol Education and Research) Act 1981 
. This Act was introduced by the Government to wind up the Licensing Compensation Scheme, which had been established early in the 20th century as a mechanism for reducing the number of pubs in the hope that this would reduce drunkenness and drunken offences.
The Compensation Scheme
In the 1890s a government enquiry had been impressed by statistical evidence that there was a causal link between the number of licensed premises in a particular area and convictions for offences of drunkenness. The inquiry recommended that the number of premises should be reduced over a seven-year period. To achieve this, each petty sessional division was required to set a committee of local magistrates and councillors. Their task was to determine how many licensed premises were needed in the neighbourhood and to prepare a plan for reducing any surplus number. Acting on recommendations of the compensation committees the licensing justices would refuse to renew these licences at the annual Brewster sessions. A licensee who lost his licence in this way would be compensated by a sum equal to the difference between the value of their premises with a licence and without one. To raise the compensation money the committee would be empowered to impose a levy on the licensees whose licences were renewed.
Although it was intended that the scheme should be wound up after seven years, once it had been enshrined in legislation bureaucratic inertia took over and it was re-enacted in successive Licensing Acts. It was left to local committees to determine whether they should use their powers. Few did but most committees held residual funds from times when they had been active. When the Errol Committee on Liquor Licensing reported in 1974 it concluded that the compensation scheme was obsolete and recommended its abolition. The Committee noted that the amounts held by the local committees totalled £3 million. It recommended that the funds should be liquidated and applied for purposes to be determined by the Secretary of State after consultation with the drinks industry. This recommendation recognised that the compensation funds were derived from the levies imposed upon brewers and other members of the industry.
After several years of negotiation between the Home Office and the then Brewers Society agreement was reached whereby:
- half of the money would be used to establish a trust fund for the purposes of alcohol education and research;
- one quarter would be given to a further trust to benefit the licensed trade charities; and
- the remaining quarter would be distributed in the form of repayments to persons with an interest in premises that had paid into the compensation funds.
The Licensing (Alcohol Education and Research) Act 1981
Once agreement had been reached in mid-1980 events moved quickly. By the end of the year Mr Robert Banks MP introduced a Private Member's Bill on behalf of the Government. This provided for the abolition of the compensation scheme and for the local funds to be distributed according to the agreement. The Act received Royal Assent in July 1981.
In particular the Act provided for the establishment of the Alcohol Education and Research Fund, to be administered by the Council. Section 7 of the Act provides that the Fund is to be vested in and administered by the Council and applied for such charitable purposes as the Council may from time to time determine from among the following:
- (a) The education of the public as to the causes and effects of, and means of preventing, excessive consumption of alcohol.
- (b) The care and rehabilitation of persons convicted of offences involving drunkenness.
- (c) The provision of treatment and other help for persons dependent on alcohol or given to excessive consumption of alcohol.
- (d) Research into matters relevant to any of the purposes mentioned in paragraphs (a) to (c), and the publication of the results of such research.
The Act provides additionally that, in determining how the Fund is to be applied for the purposes of (b) and (c) the Council shall give priority to support for novel schemes for achieving those purposes. This qualification was inserted as a reassurance that the Fund was notto be channelled into what was seen to be the bottomless pit of alcohol treatment.
Establishment of the AERC
Towards the end of 1981 the Home Secretary, the Right Hon William Whitelaw MP (later Lord Whitelaw) appointed Lord Windlesham to chair the Council. The remaining 14 members were appointed shortly afterwards. As now the members of the Council were drawn from a number of disciplines with a professional interest in the care and treatment of those with alcohol problems. In addition, in recognition of the origin of the Fund there have been 3 members from the drinks industry, chosen from nominations made by the Brewers' Society (now the Brewers' and Licensed Retailers' Association), the Wines and Spirits Association and the Scotch Whisky Association.
The Council held its first meeting on 31 March 1982, when it agreed to appoint Mr Peter Beedle as its first secretary. He had recently retired from the Home Office after a distinguished career, which had included heading the drugs division.
Since 1982 there have been six chairmen and four secretaries. As Chairman, Viscount Colville, Mr Christopher Chataway MP, Mrs Teresa Banks, Baroness Flather and Dr Noel Olsen followed Lord Windlesham. Mr Richard Hurley, Mr Francis Jasper and Mr Leonard Hay followed Mr Beedle as the Council's Secretary. In 2003 the post of secretary was replaced by that of Director. The first Director was Professor Ray Hodgson.
Management of the Fund
Throughout its history the Council has been careful to invest the Fund wisely, and in this it has benefited greatly from the financial expertise of the drinks industry members.
The liquidation of the licensing compensation funds, which was finally completed in 1997, produced a total of £3,118,599.
For several years the responsibility for investing the Fund has been placed in the hands of professional fund managers. Since 1997 Baillie Gifford and Co of Edinburgh has managed the Fund. The value of the Fund is now £10 million and in the current financial year it is estimated to produce income of £500,000. The responsibility for monitoring the fund is vested in the Council's Finance and General Purposes Committee.
As a registered charity the Council is subject to the supervision of the Charity Commission, and is required to submit its accounts and an annual return to the Commission.
How the Council Operates
The Council meets normally three times each year, in February, June and October.
In 1996 the Council adopted a Code of Practice to regulate its policies and procedures. The Code was revised in 2000 and copies can be supplied on request.
Committees
Three functional committees, each of which meets three times a year, assist the Council.
The Research Committee considers applications for research grants and is responsible for monitoring research grants and disseminating their findings. It is also responsible for developing the Council's policy in this area.
The People and Organisations Committee considers applications for development and studentship grants. It is also responsible for disseminating findings. It is also responsible for developing the Council's policy in this area.
The Finance and General Purposes Committee is responsible for looking after the Council's finances and the efficiency of the office procedures.
The Council's Relationship with the Government
The Council enjoys a good deal of independence, but has the status of an Executive Non Departmental Public Body (NDPB) or Quango. Under the Licensing (Alcohol Education and Research) Act 1981 its members are appointed by the Secretary of State, currently the Secretary of State for Health. The Council is also expected to comply with government policies in relation to NDPBs, especially concerning reporting and accountancy.