Seymour said the sector was “hit hard” by the Covid pandemic and the “dumb rules” made it harder to bounce back.
The review heard from a food truck business that considered setting up in Australia because the process in New Zealand was so bureaucratic.
Seymour said when the vendor explored this option with Australian regulators, they were given one contact and a clear pathway to set up the business.
Meanwhile, in New Zealand, they had to meet with 13 officials from eight central and local government agencies.
The vendor said the pathway to set up was “incredibly confusing and complex”.
High-profile restaurant closures in recent months have included Auckland waterfront restaurant Harbourside Ocean Bar Grill and Karangahape Rd cafe and bar Verona.
What are the sector’s problems?
The review identified multiple problems with how the sector was regulated, including businesses having to provide the same information multiple times, often to the same regulator.
Seymour said businesses sometimes had little certainty about timeframes, with some decisions taking “too long”.
He said it was found that alcohol licensing and renewal processes could be inefficient, disproportionate to risk, and ineffective in some cases.
The review also found licensing and registration fees were too high for some businesses, not always transparent, and did not cover regulators’ costs.
David Seymour said the review heard from a food truck vendor who considered setting up in Australia because the process in New Zealand was so bureaucratic. Photo / Mark Mitchell
Food safety requirements and checks were found to be sometimes ineffective, inefficient, or not proportionate to risk.
Disproportionate regulatory barriers that affected the provision of transport services were also identified.
Seymour said building consent and planning requirements were also found to create unnecessary costs and delays for temporary structures such as marquees.
“Now, we’re fixing those problems. In the coming weeks, Ministers will be deciding which recommendations to accept, and the next steps,” he said.
After the announcement, the Brewers Association of New Zealand welcomed the alcohol licensing reforms and the Government’s commitment to developing a Hospitality Action Plan.
Brewers Association of New Zealand executive director Dylan Firth said the review’s licensing findings confirmed what members had been telling them for years.
“Streamlining renewals, simplifying the first-time application process, and recalibrating fees so businesses are not paying annual charges regardless of risk or performance are sensible, practical changes,” Firth said.
“They will free up time and money that brewers and hospitality operators can put back into their businesses and their people.”
Louise Upston said the hospitality sector was worth $21.4 billion. Photo / Emma Tavai
Upston said the hospitality sector was a $21.4 billion industry, employing more than 193,000 people across the country.
“We’re backing Kiwi businesses and supporting a stronger visitor economy.
“As several of the recommendations highlight, hospitality issues often span multiple portfolios and agencies. That is why I will develop a Hospitality Action Plan to provide a co-ordinated framework for priority hospitality initiatives across government.”
Upston said she intended to continue working in partnership with the sector to remove barriers to growth, support businesses and workers, and ensure hospitality could thrive.