Red tape and the economic doldrums have blocked plans to relocate the Peak Cafe to the Matilda Hospital on the Peak. The Lands Department has refused to allow the venture because it considers it unsuitable to have a venue serving alcohol on hospital grounds. But patients and their visitors are already allowed to consume alcohol on the premises, which provides small fridges in the rooms, if they bring it with them. The idea to move the Peak Cafe to the hospital arose last year when the owners controversially lost their original government lease to a higher bidder. The former Peak Cafe site is now occupied by the Peak Lookout restaurant. Last year, members of the hospital management said they were positive they would be having a Peak Cafe and declared themselves 'very excited' by the prospect. Asked for her response to the plan falling through, a Matilda Hospital spokeswoman said it would be 'unprintable' and blamed the situation on the authorities. But a spokeswoman for the Peak Cafe said they had decided not to proceed with the plan under the prevailing economic climate anyway. Under the plan, the Peak Cafe would have opened to the public in an area of the hospital now being used as a staff canteen with views over Aberdeen. The Lands Department spokesman said the application they received was to expand the staff canteen.