Fireworks and Pyrotechnics Articles (Scotland) Bill: business and regulatory impact assessment

9. Competition Assessment

9.1 It is not considered that the measures will impact on competition in the fireworks market in Scotland. The new measures will not make it more difficult for a new retailer to enter the consumer firework sales market. They may, however, result in the consumer firework sales market being a less lucrative sector to enter and could result in a reduction of new business entering the market in Scotland.

9.2 The temporary storage licences required for non-specialist retailers to sell fireworks at certain times of the year are administered and granted at a local authority level. Further restrictions on the days that fireworks can be sold to the general public will have minimal impact on the days that temporary storage licences can be granted to retailers to sell fireworks on permitted days of the year, as the restricted days align with existing traditional firework selling periods. Licences for specialist fireworks retailers are also administered and granted locally. These businesses will be required to comply with restrictions and permitted days when fireworks can be supplied to the general public. It is recognised that this will have a significant impact on specialist firework traders should their business become unviable. They will, however, continue to be able to sell fireworks throughout the year to professional firework display companies, as well as community groups and organisations organising a public firework display (and also F1 fireworks).

9.3 It is also recognised that Scottish businesses could be at a competitive disadvantage if the measures did not apply to businesses based outwith Scotland that sell fireworks to Scottish consumers, such as through online sales. Therefore, measures relating to the supply of fireworks, such as the firework licensing system and restricted days that fireworks can be supplied to the public, will apply equally to retailers based in and outside of Scotland if any part of the supply – including the physical transfer of fireworks to consumers – takes place in Scotland. Retailers based outwith Scotland will be required to comply with Scots Law, as is the case for existing legislation where there is a policy difference between Scotland and other parts of the UK, for example alcohol minimum unit pricing. The measures will not limit the ability of retailers in Scotland to supply consumers outside Scotland.

9.4 The proposed legislative changes in relation to pyrotechnic articles will not have an impact on competition in this market. The proposed legislation will not make it more difficult for a new retailer to enter the pyrotechnic sales market.