'Another industry blow' Brian Taylor's blog

The move will see some premises facing a �2,000 bill for their licence.

Justice Secretary Kenny MacAskill said the move would put communities before profit margins and fairly link the charges to the size of businesses.

Holyrood's justice committee agreed not to block the new measures, which will come into force in autumn 2009.

At present, all pubs pay an initial fee of �172 for a three-year licence, with further fees for renewals.

Clearly the licensed trade want that subsidised something-for-nothing system to continue Kenny MacAskill Justice Secretary

Under the new regime, premises with a rateable value above �140,000 would pay the maximum charge of �2,000.

Strongly defending the measures at the committee, Mr MacAskill said they would dispense with the "outdated and dogmatic" mindset that selling alcohol was a right.

"It is not," he added. "It is a privilege."

The licensed trade estimated that costs to the sector would rise from �5m a year to �20m.

David Daniel of Punch Taverns, which owns 500 premises in Scotland, said the increases did not reflect the cost of administration of the licence system.

Paul Waterston of the Scottish Licensed Trade Association said pubs were already under pressure because of the smoking ban and the use of alcohol sales by supermarkets as loss-leaders.

'Subsidised' system

"The last thing licence holders need is these fees coming in," he said.

Patrick Browne, of the Scottish Beer and Pub Association, added: "I think there will be marginal businesses that will no longer continue to trade after September 2009, and I think increased costs will be passed back to the customer."

The justice committee's convener, Tory MSP Bill Aitken, decided not to press a motion to block the increases, amid concern that the increases had been brought forward at the last minute.

Mr MacAskill also said the new fees would end the current taxpayer-subsidised licensing system, under which 63% of running costs were met from fees.

He added: "Clearly the licensed trade want that subsidised something-for-nothing system to continue. But the government does not and I would suggest the public do not want it either."