Scarce permit
In the Netherlands, government permits are sometimes limited in number. Think of operating licenses for coffee shops, amusement arcades, events, or catering establishments.
When the number of available permits is smaller than the number of interested parties, we speak of scarce permits. This raises complex legal questions about distribution, equal opportunities, and transparency.
At Westhoff Van Namen, we guide entrepreneurs and institutions in obtaining, retaining, or challenging scarce permits. We advise on distribution procedures, objection and appeal possibilities.
Amusement Arcade Permit
To operate a Gaming Arcade, you also need an operating license from the Mayor. This license gives the entrepreneur the right to operate the premises and establishment where gaming machines may be placed.
The number of permits to be issued may be maximized in the Amusement Arcade Ordinance. This could potentially lead to a situation of scarce permits and require the application of a distribution methodology to potential candidates.
Coffee Shops
The number of permits issued in a municipality to a coffee shop operator may be maximized or have a ceiling.
Such a ceiling can lead to a situation of scarce permits, requiring the competent authority to apply a specific distribution methodology and offer a fair chance.
For coffee shops, there is an additional special aspect, as a tolerance declaration does not grant the right to sell. The Opium Act remains in force, which could mean that no distribution methodology needs to be applied or that there would be no scarcity.
Market Stall Permit
This permit is required to place a permanent or temporary stall at a market. Scarcity arises here due to physical limitations: there is simply not enough space in a market square to accommodate all interested parties. Additionally, municipalities can establish a maximum number of pitches through their General Local Ordinance (APV). This creates a situation where the government is obliged to implement a distribution policy that complies with the principle of equality and the principle of transparency.
Terrace Permit
A terrace permit gives catering entrepreneurs permission to operate a terrace on public property. In urban areas, public space is scarce, and municipalities must make choices about who may use this space. The scarcity here is thus partly natural (limited space) and partly policy-based (rules on traffic safety, accessibility, and livability). The distribution of these permits must take place objectively and non-discriminatorily, with clear criteria and a limited duration.
Mooring Permit
This permit is necessary to moor a boat in a fixed location, for example in a harbor or at a quay. The scarcity here is mainly physical: the number of available berths is limited by infrastructure and nautical safety. Municipalities must take into account the principle of transparency and the principle of equality when granting these permits, and may not grant permits for an indefinite period.
Event Permit
An event permit is required for organizing a public event. Scarcity arises here through policy choices: municipalities set a maximum number of events per period to limit nuisance, traffic congestion, and safety risks. The distribution of these permits must comply with the principle of equality, and the criteria must be made known in advance. Here too, permits may not be granted for an indefinite period.
Parking Permit
Parking permits give residents or businesses the right to park in regulated zones. In densely populated areas, the number of parking spaces is limited, leading to physical scarcity. Municipalities often use waiting lists or lottery systems to distribute these permits. The distribution procedure must be transparent and must not result in disproportionate favoritism for existing permit holders.
Capped Subsidy
Subsidies are not permits in the classic sense, but can be scarce when there is a budget ceiling. If there are more applications than available funds, the government must employ a distribution policy that offers equal opportunities. This can be done via order of receipt, lottery, or a comparative test. The distribution must comply with the principle of equality and must not lead to arbitrariness.
Environmental Permit
An environmental permit is required for building, renovating, or changing the use of real estate. Although this permit itself is not scarce, scarcity can arise when the zoning plan sets a maximum on certain functions, such as the number of homes or catering establishments. In that case, the environmental permit must also comply with the requirements of transparency, equal opportunities, and limited duration. The concurrence with scarce permits means that here too a
Sex Establishment Permit
This permit is required for operating a sex establishment. Municipalities often set a maximum number due to social, spatial, and safety reasons. The scarcity is thus policy-based. The distribution of these permits must comply with the principle of transparency, and the government must offer all interested parties equal opportunities to compete for the available permits.
