The Licensing (Scotland) Act 2005 came into force last Friday and marks the most radical shake up of licensing laws in decades, becoming fully implimented by September 2009.

A premises licence will come into operation and will incur a one-off payment linked to the rateable value of the property, as well as a personal licence.

Moray Council's Licensing Board has set payment levels between £800 and £2,000, with an annual fee between £220 and £900, at 90% of the maximum level suggested by the Scottish Government.

However, Ken Asher, secretary of the Moray and District Licensed Trade Association, said the charges may result in the closure of some bars.

He added: "The big thing is the cost. It will be astronomical and almost double what we were lead to believe it would be.

"It will certainly put some of the littler pubs out of business.

"Maybe in five or six years time we'll wonder what all the fuss was about, but until then we don't know.

"When the March applications come in, I think that will iron out any problems for other people, but there will be hiccups."

Ron Shepherd, chairman off the council's licensing board, said one of the aims of the changes was to make the process self-funding, – but rural pubs and hotels may suffer.

He continued: "You could have a big rural hotel that does most of its business at weekends – and then there are the supermarkets – and considering the amount of alcohol they sell they could both well pay the same amount."

Applicants for a premises licence will need to include a detailed operating plan of how the business will be run along with a layout of the building prepared by an architect or similarly qualified person.

Paul McBain, owner of KeyStores in Forres, has over 20 years experience in the licensed trade in Moray.

Secretary of the local licensed trade association, Ken Asher, discusses the changes in the licensing laws with Kareen McHardy, landlady at the Thunderton in Elgin. NS

He said: "We have to submit a plan of the shop showing where the spirits are going to go and that has to be approved with Moray Council.

"I'm sure they will need more people to police this and that's where all the money is going.

"But I don't think it will affect the business.

"Good retailers will continue to be good, and bad retailers who will continue to be bad."

He added that there would be additional costs of training his 15 staff as well as architect and solicitors' fees.

Kareen McHardy, landlady of the Thunderton in Elgin, said she hoped there would be no problems when her licence comes up for renewal in October, and is keeping her "fingers crossed" that the new laws will not effect her business.

Brian Findlay, partner with DM Hall chartered surveyors in Elgin, said the detailed premises plans were designed to discourage impulse-buying of alcohol.

He said: "Clearly, specialist cross-discipline knowledge will be required and – in the same way as solicitors have geared up to provide assistance with applications and operating plans – responsible surveyors have put provision in place to make sure the layout plan requirements can be fulfilled in a professional manner."

The council has set up a dedicated email address: liquor.licensing@moraygov.uk and a phone line service where licensees can have their specific questions answered.

Special surgeries are also being held to help applicants find their way through the new system.

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