The review of the Sale and Supply of Alcohol Act (Community Participation) Bill has singled out-licensing as a focus to strengthen community involvement and reduce alcohol harm which is supported by the beer, wine and spirits industry.
“This was both timely and appropriate to review the Act, which is a decade old, and our drinking culture continues to improve. It is always good to look at how the sector’s key legislation supports this,” said NZABC Executive Director Virginia Nicholls.
“The Bill in its current form at Select Committee will more than likely make it harder for communities to have a say.”
Nicholls explained that the government pushed the Bill through to the first reading in parliament in six weeks, meaning there was no consultation with the community and the beer, wine and spirits industry.
The proposed changes will significantly impact responsible business operators and exaggerate existing problems with the current licensing process. Throughout the country, these processes are determined by District Licensing Committees (DLCs) in keeping with the relevant Local Alcohol Policies (LAPs).
The Bill proposes to keep LAPs with the 67 different Councils around the country.
“If the LAP allows proximity provisions to sites such as schools or health facilities, the changes will enable DLCs to decline the renewal of an existing license which will remove the viability of an established business. This has no regard to the licensee's record," Nicholls said.
Nicholls emphasised that a neighbourhood bar that has operated responsibly for years may find itself under the proposed new regime, having its license refused because a new preschool has opened along the road.
The Bill removes the ability of parties to appeal the LAPs, which includes local communities and the beer, wine and spirits industry,y to the Alcohol Regulatory and Licensing Authority (ARLA), under which their licensing decisions are decided.
Nicholls clarified that the NZABC does not support removing businesses' and individuals' rights to appeal a local body decision on a local alcohol policy, stating that these decisions may be wrong in specific scenarios.
“Removing the appeal provisions will not necessarily speed up the LAP process since most delays are caused by the use of legitimate judicial reviews, which have nothing to do with the current Act.”
The Bill proposed changes to the processes DLCs follow, resulting in DLC hearings being more involved.
Nicholls shared that NZABC did support a review of the rules and guidelines for District Licencing Committees, enabling them to investigate and represent community expectations when granting alcohol licences.
However, in a DLC hearing, the Bill restricted who could question and cross-examine witnesses at a licensed hearing.
“We support a fair procedure and process, and part of this is to continue with cross-examination for both parties.”
Furthermore, Nicholls shared that the Bill also broadened the category of people who can object to a license application. The result is that someone with no relationship to the community in question could object.
The NZABC stated that most on-and off-license operators acted responsibly and needed surety. Reducing alcohol harm would be better achieved by updating the Act and regulations.
Since 2010 the number of licences nationwide has declined by more than 23 percent, with research suggesting that the vast majority of New Zealanders drink responsibly, with the country drinking 25 percent less than they did in the late 1970s.
Nicholls stated that the industry needed an evidence-based approach to selling and supplying alcohol that addressed unhealthy drinking behaviours while safeguarding the involvement of communities, including responsible licensees.
