The New Zealand liquor and hospitality industries are welcoming the introduction of the Sale and Supply of Alcohol (Improving Alcohol Regulation) Amendment Bill, announced today by Associate Minister of Justice, Hon Nicole McKee.
“Alcohol is a legal product that the vast majority of New Zealanders consume responsibly,” says McKee. “But over time the law regulating it has become increasingly complex, bureaucratic, and disconnected from the harms it is supposed to address.
“The Sale and Supply of Alcohol (Improving Alcohol Regulation) Amendment Bill is a necessary correction to make the licensing process fairer, make it easier to host events, and cut a heap of other red tape affecting everything from hairdressers to major concerts.”
Key changes in the Bill include:
Limiting objections to licence applications or renewals to only those living or working in the same council area, or within 1 kilometre of the proposed licensed premises.
Giving licence applicants a right of reply to licensing objections to ensure a fairer process.
Preventing licence renewals from being declined solely because a local alcohol policy has changed.
Allowing clubs to apply for on-licences if they wish to serve the wider public.
Allowing certain restaurants with on-site retail areas to sell alcohol for customers to take home.
Streamlining special licence requirements to make it easier to host events.
Creating a permanent mechanism allowing licensed premises to open and serve alcohol outside licensed hours to televise major events such as the Rugby World Cup.
Exempting hairdressers and barbers from needing an on-licence to supply their customers a limited amount of alcohol such as a beer, glass of wine, or gin and tonic.
Extending cellar door tasting provisions beyond wineries so other producers such as breweries and distilleries can charge for tastings without needing an on-licence.
Allowing licensed premises to meet their legal obligations by stocking either low-alcohol or zero-alcohol drinks.
Clarifying responsibilities for rapid alcohol delivery services to ensure alcohol is not delivered to underage or intoxicated persons.
The hospitality sector will have an opportunity to propose additional changes during the select committee process.
New Zealand Winegrowers
Philip Gregan
Philip Gregan, Chief Executive Officer of New Zealand Winegrowers, says the changes will help to simplify the licensing system for many businesses.
For example, the proposals will allow winery cellar doors or restaurants with an on-licence to stock zero-alcohol wines to meet their licensing obligations.
Currently, the licence holder is required to stock “low alcohol” products containing no more than 2.5% alcohol. With the significant growth in zero alcohol wines (as well as beers and spirits), these proposals would now allow zero alcohol products to meet the licensing requirements.
“We often hear from our members about the challenges involved in alcohol licensing,” says Gregan. “While it is important that there are guardrails in place around the sale and supply of alcohol, many of the current requirements have become overly bureaucratic and technical.
“The vast majority of New Zealanders consume alcohol responsibly, and the regulatory framework should reflect that”.
Gregan says the proposals would also reinstate procedural requirements in the law that ensure that objections to licence applications or renewals have an appropriate level of connection to the application.
“The current law allows someone from anywhere in the country to object to a licence application or renewal,” he says. “This is a sensible change that ensures that a business cannot have its licence impacted by unconnected objectors.”
Hospitality NZ
Kristy Phillips
Hospitality NZ Chief Executive, Kristy Phillips, says the proposed changes are common-sense amendments.
“Members regularly raise with us their concerns around the licensing process which have been held up with vexatious objections from outside the applicant’s territorial authority,” she says.
“Applicants have been unable to reply to concerns raised by objectors during a hearing, and existing licenses have been impacted by a change in their local council’s local alcohol policy (LAP).
“The proposed amendments require an objector to be based in the local community where a premises operates, so they understand the community the license holder is applying to operate in.
“The amendments also enable written right of reply during a hearing, and offer certainty for businesses renewing their alcohol licence even if the LAP has changed.”
Phillips says while these changes do not fix the alcohol licensing system, she believes they return some balance into what has become an arduous process.
“We’re also pleased with the proposals around enabling greater flexibility for the screening of televised events outside of usual licenced hours, rather than requiring a legislative process, and the sensible amendments around allowing zero-alcohol beverages being able to satisfy requirements to provide low-alcohol options – something that reflects changing consumption behaviours.”
The Brewers Association of New Zealand
Dylan Firth
The Brewers Association of New Zealand says the reforms represent a practical step toward modernising New Zealand’s alcohol laws.
Executive Director Dylan Firth says the proposed changes recognise how consumer behaviour and the hospitality sector have evolved.
“One of the most positive changes in this Bill is the recognition that zero-alcohol products are now a major part of consumer choice.
“Allowing licensed premises to meet their legal requirement by stocking either low-alcohol or zero-alcohol options reflects the way New Zealanders are increasingly choosing moderation,” says Firth.
The Bill proposes allowing venues to stock zero-alcohol beverages as an alternative to low-alcohol products to meet responsible service obligations, improving access to alcohol-free options for consumers.
“The growth of 0% beer and other alcohol-free products has been one of the most significant changes in the beverage sector over the past decade. Updating the law to reflect that reality supports both responsible drinking and consumer choice.”
The Brewers Association says it also welcomes provisions extending “cellar door” tasting rules beyond wineries to other producers such as breweries and distilleries.
“New Zealand breweries are increasingly investing in visitor experiences and beer tourism. Allowing breweries to charge for tastings under off-licences simply puts them on the same footing as wineries and supports regional tourism and local producers,” says Firth.
The Association says the broader focus of the Bill on simplifying licensing processes and reducing unnecessary compliance costs would also be welcomed by many in the hospitality sector.
“Hospitality businesses across the country are under significant pressure. Any practical improvements that reduce unnecessary bureaucracy and make the system easier to operate are positive steps.”
However, Firth said the reforms should be seen as one step in a broader process of modernising alcohol regulation.
“There are still a number of areas where the licensing system could be improved to make it more consistent, more efficient, and more supportive of responsible businesses.”
“We strongly support the Ministry for Regulation review and look forward to its recommendations later this year. This Bill is a useful step in the right direction, but it should also be the start of a broader modernisation of how alcohol licensing works in New Zealand,” he says.
Spirits New Zealand
Robert Brewer
Spirits New Zealand says it welcomes the proposed changes to alcohol law but believes there is more that could be done to continue to bring back a common sense approach to licensing rules.
“We are aware that although the proposed Bill makes great strides in acknowledging the need to reduce harmful drinking at the same time as not over engineering licensing processes there is still some way to go in this regard,” says Spirits NZ CEO, Robert Brewer.
“In fact we believe, in terms of the original purpose of the Sale and Supply of Alcohol Act, the sections relating to licensing and the role of District Licence Committees are virtually broken.
“We supported the initial thrust of the Act when it delegated responsibility for alcohol licensing to local communities. Unfortunately over time this has caused a dislocation of intent and instead of getting nationally consistent application of licensing regulations, both on and off premises are faced with piecemeal and inconsistent approaches from licensing authorities.”
“This not the fault of the authorities themselves but is more a reflection of an out-of-date and out-of-step set of rules that do not acknowledge any difference between ‘good’ and ‘bad’ licence holders and business operators.”
Brewer says this is easily remedied by, firstly, reducing the number of District Licencing Committees to promote more national consistency and then establishing a set of operational criteria defining a “good” licenced operation and then enshrining these criteria in regulation.
“In this way we reduce the administrative burden on Councils, Licencing Inspectors, Police and business and promote better trading practices thus supporting harm reduction.”
For the full Sale and Supply of Alcohol (Improving Alcohol Regulation) Amendment Bill explanation of proposals, click here.
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