Industry slams passing of Alcohol Amendment Bill

Major industry groups have expressed their shock and dismay at the passing of the Sale and Supply of Alcohol (Community Participation) Amendment Bill, saying industry feedback has largely been ignored and that license holders are now open to unnecessary risk.

The Bill aims to increase the influence of local communities on alcohol licensing decisions in their area with changes to the alcohol licensing process provided for in the Sale and Supply of Alcohol Act 2012. The Bill was passed under urgency in Parliament on August 24.

Minister of Justice Ginny Andersen says the Government has delivered new legislation that will ensure the voices of communities are heard in alcohol licensing decisions, contributing greatly to a reduction in alcohol harm.

However, a range of industry groups cite concerns with the removal of “the grandparenting right” from the existing Act, which means changes to the Local Alcohol Policy can retrospectively impact existing licence holders.

Hospitality NZ Chief Executive Steve Armitage says that while it supports the harm minimisation aims of the Bill, there is concern it will create immense uncertainty for license holders and undermine otherwise successful and responsible businesses.

“While there are a number of issues we see with the bill, our primary frustration relates to allowing District Licensing Committees to take new Local Alcohol Policies into account when considering renewals, including the ability to decline license renewals if they are viewed as inconsistent with any new LAP. 

“Under this clause, if a new LAP imposed licence density restrictions or buffer zones then these could be grounds for declining renewals, without consideration of the standing of the existing licensed premise. “

The Brewers Guild says it is “shocked” at the passing of the Bill, saying it could be a devastating blow for breweries and tap rooms across New Zealand.

Brewers Association Executive Director Dylan Firth echoes these concerns. “While as a sector we agree with the core premise of the legislation to improve the Local Alcohol Policy development process, the legislation goes further and will create uncertainty of trade for businesses all over New Zealand.

“It is our view the government has in this bill, substantially devalued every single licensed business in New Zealand and placed their owner’s livelihoods and those of thousands of staff into a state of uncertainty.”

Spirits NZ Chief Executive Robert Brewer has dubbed the Bill “ill-conceived” and a risk to businesses. “This means a well-run venue which has been in a community for 30 years is under threat on licence renewal if changes to local rules suddenly affect it,” says Brewer.

“Any business owner will tell you that if your ability to trade can suddenly be affected at the stroke of a pen, even after decades of investment and hard work, then the value of your business will be also be affected.”

Robert also says other changes the new law makes will not make it any easier for communities to become involved in the licencing process. “If anything, the changes will make licencing hearings longer, more technical and more costly.”