Minister for Regulation David Seymour and Minister for Tourism and Hospitality Louise Upston have today welcomed the completion of the Ministry for Regulation\u2019s Hospitality Sector Review, which will make it easier and cheaper for hospitality businesses to open, and easier for them to do business.<\/p>\n
\u201cToday\u2019s announcement is about cutting red tape and getting rid of dumb rules which can contribute to [hospitality] closures,\u201d says Seymour.<\/p>\n
\u201cIf we are going to unlock New Zealand\u2019s potential, we need to let Kiwi businesses get on with business.\u201d<\/p>\n
Seymour says the sector was hit hard by Covid and red tape and \u201cdumb rules\u201d made It hard for the sector to bounce back. <\/p>\n
\u201cThe rules and regulations are imposed by so many departments that they\u2019re difficult to fix,\u201d he says. \u201cThat\u2019s why we set up a Ministry with a mandate for cutting red tape; to fix the problems no one else can.\u201d<\/p>\n
The Review identified a number of problems with how the sector was regulated, including:<\/p>\n
businesses have to provide the same information multiple times, often to the same regulator (i.e. councils)<\/p>\n
some decisions take too long, and businesses have little certainty about timeframes<\/p>\n
alcohol licensing and renewal processes can be inefficient, disproportionate to risk, and ineffective in some cases<\/p>\n
fees for licensing and registration are too high for some hospitality businesses, not always transparent, and are not covering the costs for regulators<\/p>\n
disproportionate regulatory barriers affect the provision of transport services<\/p>\n
building consent and planning requirements can create unnecessary costs and delays for temporary structures such as marquees.<\/p>\n
\u201cNow, we\u2019re fixing those problems,\u201d says Seymour. \u201cIn the coming weeks Ministers will be deciding which recommendations to accept, and the next steps.\u201d<\/p>\n
Upston says New Zealand\u2019s hospitality sector plays a vital role in our economy. <\/p>\n
\u201cIt supports jobs, local communities and the experiences of domestic and international visitors across the country,\u201d she says.<\/p>\n
\u201cThe hospitality sector is a $21.4 billion industry, employing more than 193,000 people across the country. We\u2019re backing Kiwi businesses and supporting a stronger visitor economy.\u201d<\/p>\n
She says hospitality issues often span multiple portfolios and agencies. <\/p>\n
\u201cThat is why I will develop a Hospitality Action Plan to provide a coordinated framework for priority hospitality initiatives across government.<\/p>\n
\u201cI intend to continue working in partnership with the sector to remove barriers to growth, support businesses and workers, and ensure hospitality can thrive as part of a growing New Zealand economy.\u201d<\/p>\n
Industry reactions<\/p>\n
The Brewers Association of NZ<\/p>\n
The Brewers Association of New Zealand (BANZ) says it welcomes the alcohol licensing reforms, saying they respond directly to the cost and delay problems brewers and hospitality operators have raised for years.<\/p>\n
BANZ Executive Director Dylan Firth says the Review\u2019s findings on licensing confirm what members have been telling the Association.<\/p>\n
\u201cOur members and their customers have been saying for years that getting and renewing an alcohol licence takes too long and costs too much, for very little extra benefit in reducing harm.\u201d<\/p>\n
Firth says 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. <\/p>\n
\u201cThey will free up time and money that brewers and hospitality operators can put back into their businesses and their people.\u201d<\/p>\n
Firth says the reforms are well aligned with the Sale and Supply of Alcohol (Improving Alcohol Regulation) Amendment Bill currently before Parliament, and should be progressed alongside it rather than in competition with it.<\/p>\n
\u201cThese recommendations build on the Bill rather than duplicating it. Appointing a dedicated steward for the alcohol regulatory system, with ring-fenced funding, is the missing piece that will help the reforms in the Bill actually work in practice.\u201d<\/p>\n
NZABC<\/p>\n
NZABC says the Review targets the areas where reform can make the greatest difference, including alcohol licensing and examines how regulation works in practice.<\/p>\n
\u201cWe welcome the review\u2019s focus on making regulatory processes more efficient, streamlined and proportionate to risk,\u201d says NZABC Executive Director Virginia Nicholls.<\/p>\n
\u201cThe existing licensing system has evolved into a framework that is increasingly complex, costly and inconsistent. Businesses, councils and regulatory agencies face growing costs, lengthy processes and uncertainty in decision-making.\u201d<\/p>\n
\u201cWe support the practical reforms from the review that will make alcohol licensing simpler, more efficient and proportionate to risk, including streamlined renewals, clearer first-time licensing, consistent training, better compliance tools, stronger District Licensing Committees, fairer fees and a coherent risk-based framework,\u201d says Nicholls.<\/p>\n
Hospitality NZ<\/p>\n
Hospitality New Zealand (Hospitality NZ) says the Review is an important step towards making it easier and cheaper to open and run a hospitality business.<\/p>\n
Kristy Phillips, Hospitality NZ CEO, says one of the most important outcomes from the first Hospitality Summit held in late 2024 was agreement across the sector on the need for a regulatory review.<\/p>\n
\u201cHospitality businesses navigate a great deal of regulation every day, and this has held many of these businesses back from reaching their full potential,\u201d she says. <\/p>\n
\u201cConducting a review that looks closely at where the system can be simpler, more efficient and less costly for operators is something we welcome.\u201d<\/p>\n
Phillips says the Review reflects concerns Hospitality NZ has highlighted through both their involvement in the review and the views expressed in the two Hospitality Summit reports released to date.<\/p>\n
\u201cIn particular, consistency in decision making is an important principle for hospitality businesses that are working with regulators,\u201d she says.<\/p>\n
\u201cThe release of the Review is an important step in the right direction for hospitality. If implemented, we believe the recommendations will help improve certainty for hospitality businesses, and support better growth and investment decisions.<\/p>\n
\u201cThe next step is turning these recommendations into tangible changes that will best support our industry.\u201d<\/p>\n
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