NEW licensing laws are going to put a 15 per cent hole in the profits of a North-East pub chain, its boss said last night.

The Government's new legislation means all drinking venues have to reapply to their local council for a licence.

Alistair Arkley, chairman of Teesside based New Century Inns, fears attempts by certain councils to stretch the rules will have serious impact on margins.

He believes the total cost for licensing all his 48 pubs would top £100,000.

"The costs are very substantial indeed," he said.

"Already we have incurred bills in excess of £70,000 and we fully expect the final total to run into six figures.

"They could equate to ten to 15 per cent of our total profits last year."

He has also has expressed concern over caveats imposed by councils on behalf of the police and fire authorities. These include subjecting rural pubs to the same policies used for city centre pubs, such as ensuring they have door staff, CCTV and a 9pm curfew on beer gardens.

"In the main, we are having a sensible dialogue with the authorities," he said.

"But there are some examples coming to light which certainly indicate that some councils are trying to stretch the limits of the new regulations by imposing requirements which are impractical or simply unreasonable.

"In our experience, we are seeing examples such as moves in North Yorkshire to introduce into country-type pubs security measures, including CCTV and 'door control', which might be entirely justified in city centre locations but would be entirely out of place in a quiet rural setting."