Check your compliance

Opinion

7 Aug

With changes ahead for alcohol licensing,
lawyer Pervinder Kaur explains what it could mean
and has some helpful advice...

The Justice Select Committee has reported back on the Sale and Supply of Alcohol Act (Community Participation) Bill (Bill). The Bill aims to increase the influence of local communities on alcohol licensing decisions in their area and proposes certain changes to the alcohol licensing process provided for in the Sale and Supply of Alcohol Act 2012.

Under the current law, the licensing authority or licensing committee is
not allowed to take into account any inconsistency between a relevant local alcohol policy (LAP) and the renewal of the licence or the consequences of
its renewal. However, the Bill (under clause 12) would allow the licensing committee to take new LAP into account when considering renewals – including the ability to decline licence renewals if they are viewed as inconsistent with any location or licence density provisions.

“In my view, the changes are targeted at high- to medium-risk premises.”

In practical terms, what this means is that the licence renewal for an existing bottle store may be refused because a school, childcare and/or a kindergarten (sensitive site) has opened next door since its licence was last renewed and a new LAP stipulates that no off-licence will be granted where the site boundary is adjacent to a sensitive site. Under the current law, the newly established sensitive site cannot be taken into account because the bottle store existed before it.

The use of the word “may” in clause 12 of the Bill suggests some discretion may apply in refusing to renew a licence. The Justice Select Committee has not suggested any changes to the proposed clause 12 of the Bill. Therefore, it will proceed to the second reading as is.

I understand that the reasoning behind the Bill is to increase community engagement and address alcohol-related issues. But is the Government’s current approach to tackle alcohol-related harm appropriate? Or is it unfairly shifting the imbalance towards an industry that is a significant contributor to the country’s economy and which would likely bear the brunt of these changes, namely – removing appeal rights against the LAP, removing the requirement for objectors to have greater interest than the public generally, and granting the ability to refuse to renew a licence if inconsistent with the LAP provisions?

Albeit it is acknowledged that a licence is a privilege and not a right and the licensing committee has the powers to refuse to renew a licence if there
are issues with the way a premises is being operated.

This said, it seems unlikely that low-risk businesses such as wineries, cellar doors, restaurants, and clubs operating in their local communities would encounter problems with their renewals as a result of the changes proposed by the Bill. This is because the licensing committee’s assessment, at the time of renewal, would be guided by public objections or concerns raised by the reporting agencies in relation to the location or premises density. If there are no such concerns, then the licensing committee would likely approve the renewal.

In my view, the changes (in particular clause 12) are targeted at high- to medium-risk premises, especially bottle stores and/or taverns, so as to restrict such premises in certain areas of the local community. Community organisations often view these premises negatively and hold them responsible for causing alcohol-related harm and the Bill is the Government’s response to address those concerns.

I believe the upcoming changes to the alcohol licensing laws now make it more important than ever for licensees to implement effective systems that reduce alcohol-related harm in their establishments. This should not be a
mere checkbox exercise. It is necessary for licensees to have appropriate systems, staff, and training to ensure their premises are operating in compliance with the law.

A compliant and well-managed premises is less likely to face objections or concerns from its local community and/or reporting agencies and more likely to have its licence renewed. It is also important that licensees are engaged with and aware of their local community’s concerns relating to alcohol sale and supply.