The Justice Select Committee has reported on the Sale and Supply of Alcohol Act (Community Participation) Bill.
This Bill singled out licensing as a focus to strengthen community involvement and reduce alcohol harm.
"The beer, wines and spirits industry supports local communities' ability to influence alcohol regulation in their region. This includes licensees, customers, and the community have their say on how best to minimise alcohol harm and to ensure the highest standards of on and off licence possible," said NZABC (New Zealand Alcohol and Beverage Council) Executive Director Virginia Nicholls.
However, the proposed changes will not achieve this aim.
Nicholls added that the Select Committee had not heard the feedback from community groups, including small business owners, beer, wine and spirit suppliers, and those who drink beer, wine and spirits safely and responsibly.
She continued that the Justice Select Committee had ignored the concerns of small business owners and long-standing responsible licensees who may lose their businesses due to these changes.
"This is a massive blow to small business owners facing skill shortages, rapidly escalating costs and increasing excise tax. Off-premise faces increased crime, and on-premise is negotiating fair pay agreements."
The Bill proposes the removal of the party's ability to appeal Local Alcohol Policies (LAPs) to the Alcohol Regulatory Licensing Authority (ARLA), which will restrict the appeal rights in the community.
Nicholls said that this ignored the ability to challenge decisions that unduly impact trading rights or may not be based on evidence.
"Councils do not always get things right, and losing the general appeal right to ARLA removes an important check on Council powers."
Removing the appeal provisions will not necessarily speed up the LAP process since most delays are caused by using legitimate judicial reviews, which have nothing to do with the current Act, explained Nicholls.
If the LAP allows for proximity provisions to sites such as schools or a church, this will force the closure of a pre-existing on or off-licence, irrespective of whether it was well run or valued by the community.
"A neighbourhood restaurant which has operated responsibly for years may find themselves under the proposed new regime, having their license refused because a new medical centre has opened along the road."
The new Bill requires DLCs to establish procedures so that hearings avoid unnecessary formality and cross-examination.
This will be important that a fair procedure and process occurs for all parties involved and is consistent nationwide.
The Bill increased the number of groups and individuals who can object to an application. The NZABC does not support amendments that broaden the national community groups who do not have a link to the local community to provide submissions, as this would allow interest groups with no connection to local issues to participate in decision-making for local businesses.
Nicholl further explained that public interest groups could object to any application nationwide. This would prolong the application process and result in less efficiency. Some opposed licence applications take over a year to progress through objection, reporting and the DLC hearing process.
Nicholl gave the example that an Auckland-based group, fundamentally opposed to off or on-licences, could object to an application in Southland. This group is not part of the Southland community and, in principle, should not have standing to object to an application that does not impact its community. This does not align with the Bill, which clearly states that it aims to 'influence alcohol regulation in their area'.
Furthermore, in practice, the changes in who can object to applications and how hearings are run have the potential to result in an increased number of licensing hearings. This would increase some of the costs involved in participating, particularly for parties attending hearings and administrating the application and hearing process.
"The vast majority of on-and off-license operators act responsibly and need surety, and reducing alcohol harm would be better achieved by updating the Act and regulations."
Nicholls added that since 2010, the number of licences nationwide has declined by more than 23 percent, and research has indicated that most New Zealanders drink responsibly, with New Zealanders now drinking more than 25 percent less than in the late 1970s. Harmful drinking, particularly among younger drinkers, has also fallen.
