Sinn Fein Councillor Anne Brolly, who lives in Dungiven, said several concerned residents have approached her with the allegations.

She said: “There have been numerous allegations about a bar in the town actually staying open all night, and scheduling workers to work until 6.30 in the morning.

“Of course, these are allegations and I have no way of verifying them, but they are widespread and numerous.”

East Derry Sinn Fein MLA Francie Brolly said he was also aware of the allegations.

“Rumour has it that in one bar overnight accommodation is available. I hear it’s not five star, but it is enough.”

The pair urged anyone with concerns over licensing issues to take them to the police.

PSNI Chief Inspector Stevie Cargin said: “We are aware of public concerns regarding the licensing issues in Dungiven in recent weeks and we are taking steps to address those concerns. If people have information then they should come forward to police. All reports will be robustly investigated. We are keen to work with the licensees in the town to ensure that breaches of the regulations do not occur.”

Ms. Brolly said parents were also concerned about underage drinkers spilling out onto the streets from pubs.

The PSNI recently carried out inspections in Dungiven. .

A PSNI spokesperson said: “Underage drinking is an issue that should be of concern to everyone in the community. Licensees have a responsibility to ensure that minors are not served alcohol on their premises and equally parents have a responsibility to ensure that their children are not obtaining alcohol from bars or off-licences.”

The spokesperson urged anyone aware of incidents where alcohol is being supplied to minors or any other breaches of the licensing laws to contact the police.

During the recent inspections in Dungiven, one offence was detected, the spokesperson added.

DPP chair, SDLP Colr. Michael Coyle, said bar owners in the town were recently invited to meet with the police. He said it was important for bar owners to be aware of licensing legislation.