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CJEU: Paying costs relating to the management & enforcement of a licencing regime

The aim of facilitating access to service activities would not be served by such a requirement, even if the payment is refundable if the application is refused.

Mr Timothy Martin Hemming and others hold licences authorising them to operate sex shops in Westminster. Within that locality, Westminster City Council is the local authority responsible for issuing licences for such establishments.

National legislation requires an applicant for the grant or renewal of a licence to pay a reasonable fee determined by the local authority. In the present case, the fee in question is made up of two parts, one related to the administration of the application (non-refundable if the application is refused), and the other (considerably larger) for the management of the licensing regime (refundable if the application is refused).

For the year 2011-12, the total fee was £29,102 (approximately €37,700), of which £2,667 (approximately €3,455) was allocated to the administration of the application, while the remaining £26,435 (approximately €34,245) 2 related to the management of the licensing regime (that amount being refundable if the application was refused).

Mr Hemming submits that Westminster City Council infringed the Services Directive3 by requiring the payment of the second part of the fee. Under that directive, any charges which applicants may incur from their application must be reasonable and proportionate to the costs of the authorisation procedure and not exceed them.

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