THERE has been a significant slowdown in the number of pubs coming on to the market, despite the fact that there is no shortage of buyers available, according to estate agents.

Some sources believe the Competition Authority's investigation into the pub trade may be a contributory factor with pub owners holding off until it completes its work.

One issue the authority is examining is whether legislation is a barrier to preventing people from entering the market. Others say publicans do not want to sell because of the present buoyancy in the bar trade.

The developer of a pub planned for a new neighbourhood shopping centre in a Dublin suburb is said to have been offered about £1.5 million for the premises when they are completed. slow-down in supply, virtually no pubs have come on the market this year," says one agent. "It is very difficult to understand, maybe people are adopting a wait-and-see-attitude until the Competition Authority completes its work."

The authority's chairman, Paddy McNutt, declined to discuss the issue, but indicated it would be a few months before the authority produces a report. It has been suggested that the system of licensing pubs, currently strictly controlled, should be relaxed completely.

However, it is unlikely the system will become a free-for-all - which would be vigorously opposed by the industry - but some new system of licensing will be recommended. It is thought it will include the issuing of new licences, especially in fast-expanding Dublin suburbs such as Lucan, Tallaght, Clondalkin, Mulhuddart and Swords.

Thousands of houses have been built in these areas over the past decade, with many more planned.

The Licensed Vintners' Association (LVA) has made a submission on the issue to the Competition Authority, arguing that the current licensing regime is sufficient.

It argues Dublin is not "underpubbed" and quotes a 1994 study which showed there were 1,060 retail drink outlets in Dublin city and county, 686 of which were public houses.

"You also have to remember that between 20 and 30 new puns have been created in the Dublin area in the past couple of years, through transferring licences from the provinces," the association says. "Some of them are now the most trendy bars around Dublin."

Under current legislation, no new bar licences are issued, but ..licences can be transferred from rural pubs to the county area of Dublin.

To open a new bar the owner has to acquire two licences and extinguish one to take it out of the market. Country licences are currently fetching about £40,000, while city licences cost between £100,000 and £300,000.

Hotels which have a prescribed number of bedrooms can get a drinks licence once they are approved by Bord Failte. However, a single licence has to be acquired to open to the public.

"There has been a lot of hotel developments which are really bars with hotels, rather than the other way around," says one agent.

Louis Fitzgerald, whose Fitzgerald Group owns 15 pubs in Dublin, is conscious of the scarcity of pubs for sale. "Seven or eight years ago, publicans would sell to trade up to another area," he says. "Now they are happy with their lot and are staying put."

He says Dublin has changed greatly over the past 10 years and as areas improve publicans want to move there. Even Temple Bar is an example," he says. "15 years ago no publican with any sense would have bought a pub there."

Like others, Mr Fitzgerald says many of the hotels which have been built in Dublin have huge bar areas and operate more as bars than hotels. "If you build a 20-bedroom hotel in the city you can get a drinks licence," he says. "Some of the bars have a bigger floor space than the 20 bedrooms put together."

Agents say the banks and financial institutions are looking very favourably on pubs as an investment. Funding of up to 75 per cent is available to the right client.

For the bars coming on the market, cheap loans and the scarcity of supply is forcing up prices.

"What we are seeing now is really a catching up process," says one agent. "Prices were very depressed in 1994 and 1995."

Frank Fell of the LVA says simply: "When times are good, people don't sell."

He says 40-50 pubs usually change hands each year. "Normally speaking, you would expect more pubs to be for sale."

Pubs which have been sold this year have fetched good prices. Those include Terenure House, which made close on £2 million and Findlater's of Dorset Street, which fetched around £450 000 but had good development potential.

The Noggin Inn, in Sallynoggin, was recently withdrawn at auction .and in excess of £2 million is being sought

In comparison, 1996 was a very active year for sales with several businesses making exceptional prices.

These included the Harp Bar in Swords, which made £1.9 million, the Purty Kitchen in Dun Laoghaire, Co Dublin, which made in excess of £2 million and The Red Windmill in Phibsboro, which fetched close on £1.9 million.

The Vintners' Federation of Ireland (VFI), which mainly represents provincial bar owners, is reluctant to get involved in debating the issue of pub licences.

However, there is a general acknowledgment there are still far too many licensed pubs outside the major cities.

At present, the federation estimates about 10,000 exist outside Dublin, so even if another 800 licences were transferred into Dublin - bringing the number of licensed premises in Dublin to almost double its existing figure - it would make little difference in the provinces.

It has been calculated that up to 3,000 of these licences could be surrendered, but this is unlikely to happen unless a Government-backed compensation scheme is introduced.

One report has suggested that about 25 per cent of the pubs in rural Ireland have an annual turnover of less than £25,000