12.—(1) The licensing authority shall determine an application for a licence by deciding to—

(a) grant the licence or a variation of the licence, or

(b) refuse to grant the licence.

(2) A variation referred to in subsection (l) (a) may be a variation of the term of the licence or of a condition to which the licence is to be subject, or the inclusion or omission of a term or condition.

(3) The licensing authority shall, as soon as practicable after determining an application, advise the applicant in writing of its decision.