A licensee can within the grounds of statute determine what happens within their premises, indeed a Licensee can refuse entry or refuse to serve anyone "without reason", however as its legally enshrined that
"Official status has a legal effect, and means that the Welsh language should not be treated less favourably than the English language in Wales." *
Hence if there is a reason for a bar or a ban, and its based on the person using Welsh, then its against statute, and leaves him open to legal action. **
*Quote taken from the Welsh Language Commission website
http://www.comisiynyddygymraeg.org/E...hlanguage.aspx
** Legal action doesn't of course include a mob of locals armed with pitchforks trying to chase you out of town...
NB. the Telegraph write up on the original incident indicates the area in question at the time of the incident was 60% Welsh speaking, so indeed he and his partners policy would disenfranchise the majority of their potential customer base.