Publicans will be encouraged to act in a "socially responsible manner" if the proposed changes in pub licensing laws are enacted, according to a Galway-based economic consultant.

The Intoxicating Liquor Bill promised by the Minister for Justice, Mr O'Donoghue, will also address the shortage of licences in certain urban areas, Mr Richard Donovan of CEA Economic Consultants in Galway said this week.

Mr Donovan, who has represented the Vintners' Federation of Ireland on the issue, said the proposals as outlined by the Minister earlier this week were far more favourable than the alternative - complete deregulation.

Deregulation would infringe publicans' property rights; would encourage hit-and-run entry, where entrants to the trade would be more likely to engage in "socially irresponsible" behaviour; and could even affect the price of pints, his company said last year in a detailed submission to Government on the VFI's behalf.

The draft Bill aims to remove what the Minister has described as "anachronistic" restrictions on entry to the licensed trade.

Applicants will no longer have to prove a population increase in urban areas to justify a licence; and the requirement on those who wish to open a pub in a rural area to buy two licences will also be abolished.

The prohibition on granting a licence within one mile of an existing premises will also be lifted, under the draft legislation.

Mr Donovan said the abolition of the "one-mile rule" would increase mobility and allow publicans to respond to population shifts and changes. The value of all licences would become viable, by reducing oversupply in certain rural areas. Those publicans who wished, could "leave the trade with dignity".