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[1] In 1991, members of the Royal Air Force Association Club applied to Dumfries & Galloway Council for relief in respect of rates for their licensed social club premises on the ground floor of 20 English Street, Dumfries. The club premises were quite separate from premises on the upper floor occupied by the Royal Air Force Association, a registered charity. As a charity, the Association qualified for mandatory rates relief. However the Club's application had to be determined on its own merits.
[2] During 1991 to 1993, there was an exchange of correspondence and views about the Club's application for relief. As was noted in a Report by the Council's Director of Finance dated 9 December 1993:
"3.5 It is not clear if the Club has charitable status. Notwithstanding that, to qualify for mandatory relief the premises must be wholly or mainly used for charitable purposes. There is case law on this point which confirms that relief is confined to uses directly related to the achievement of the objects of the charity; use for the purpose of getting in, raising or earning money for the charity is not deemed to be used ( sic ) for charitable purposes. In the light of this it is my view that the Club is not entitled to mandatory relief.
3.6 This leaves the question of discretionary relief. It is the current policy of the Council not to grant such relief to licensed clubs. Members will recall that this policy was reaffirmed at their last meeting when an application from Langholm Hall User Group was considered and refused. If relief is granted in this case, it is likely that the Council will have to consider applications from many other licensed clubs throughout the Region."
[3] The Club's application was duly considered by the Council's Central Services Committee at a meeting on 21 December 1993. The application was refused. The Committee also re-affirmed the Council's general policy of refusing relief to licensed social clubs. The minutes of the meeting recorded the decision and re-affirmation of policy as follows:
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