A report recommending a radical shake-up of the licensing laws to make it easier to open a pub will be published today.
The report by the Competition Authority follows an extensive investigation into the drinks industry.
The authority has concluded that the current regime is seriously restrictive and limits competition to the detriment of consumers. It will argue that the laws governing the opening of pubs are completely out of date and a new system should be introduced as a matter of urgency.
The report's findings will be closely monitored by the drinks industry. There are fears among pub-owners that liberalising the laws will devalue existing premises. The Licensed Vintners' Association (LVA), which represents publicans in Dublin, has already warned that the pro liferation of licences in Dublin would affect its members' property rights and would not go unchallenged.
At present it is necessary to buy two existing licences and extinguish one of them to open a new pub in a rural area. It is easier to transfer an existing pub licence in urban areas, but the licensee must stay within a certain boundary, within the city.
New hotels must also buy existing licences if they want to sell alcohol. These can be bought anywhere in the Republic and transferred to wherever the hotel is built. Industry sources say such licences are usually bought in small towns and villages where the pub is an adjunct to a grocery shop and does little business. They are currently fetching about £50,000.
However, the going rate for licences in urban areas is £300,000-£500,000, although a licence - not including the property - in an area such as Temple Bar can fetch up to £1 million.
It is understood that the authority believes the current system is a barrier to entry and prone to abuse by existing operators. Industry sources estimate that there are approximately 700 pubs in Dublin, but about 6,000 outside the capital.
The authority is expected to argue that the balance is completely skewed and should be redressed through liberalising the regime. It will argue that the laws do not take into account the huge population growth in urban areas such as Dublin and Galway.
The authority began investigating the licensing regime 18 months ago. Sources said publication of the report had been delayed because earlier this year the authority began proceedings against the LVA and the Vintners' Federation of Ireland, the two organisations representing publicans. The authority has been investigating allegations of price-fixing in the trade.