Sale and Supply of Alcohol Act 2012

Change is coming in a big way for our food, beverage and hospitality clients, courtesy of the Sale and Supply of Alcohol Act 2012.
I'd suggest it is not just of interest for all our clients who operate in these sectors, but it is critical for the entire Queenstown Lakes district that we debate the issues around this and come up with the right answers.



Although the Act was actually passed on 18 December 2012, not much seems to have happened so far. The only real change to date has been that the Liquor Licensing Authority has been replaced by the Alcohol Regulatory and Licensing Authority (ARLA).
The ARLA now considers all contested licensing applications and manager’s certificates. The existing District Licensing Agency will still consider all uncontested applications until 18 December 2013, when it will be replaced by a new District Licensing Committee. More on that shortly.
The other change that has recently occurred is that, as from June 2013, all licence applications will be considered under new, expanded criteria in the new Act.
These expanded criteria include consideration of whether the licence is likely to increase alcohol-related harm, or whether granting the licence will negatively impact a community and neighbourhood. Obviously these criteria are quite subjective, so it is not yet known what the practical effect will be.
Until 18 December 2013, new or renewal applications for manager’s certificates will still be considered under the old Act.
The next key date therefore is 18 December 2013.
On that date, new standard trading hours will apply of 8am to 4am for on-licences and 7am until 11pm for off-licences.
If you currently operate for longer hours, you will need to comply with these new trading hours. However, if your hours are currently shorter then you can continue to operate the hours that you do at present.
A number of other matters also come into force including:
1. A requirement for on-licences to supply or make available water, non alcoholic beverages, food and information about safe transport.
2. It will become an offence to present a fake I.D for the purposes of buying alcohol.
3. Certain promotions will become offences under the new Act, including:
(i) Promoting excessive drinking;
(ii) Promoting alcohol in a way that has special appeal to minors;
(iii) Advertising free alcohol or discounts of 25% of more;
(iv) Offering free goods or services with the purchase of alcohol.
Obviously, some bars need to be very aware of these advertising provisions. Certain offences can invalidate a licence or a manager’s certificate for five years if those offences have been committed three times within three years. Again, some of these offences are open to interpretation, so there is real risk for you in transgressing if you are not careful. The types of offences include:
a. Doing anything that might encourage people to drink to excess.
b. Promoting or advertising free alcohol, unless you are an off-licence offering a complimentary sample for consumption there and then.
c. Promoting a competition that requires or enables people to enter it by buying alcohol.
There are two key things that can not take effect before 18 December 2013 however. They are, firstly, the District Licensing Committee (DLC) will not come into force until then and, secondly, Council can adopt its own Local Alcohol Policy (LAP) after that date.
Firstly, let’s look at the District Licensing Committee. This will operate very differently to the way to the District Licensing Agency has in the past. Whereas the DLA was made up of Councillors, and often the decisions were delegated to Council staff, the DLC will be a separate three-person body, appointed by Council. Members of the DLC will not necessarily be Councillors. In fact, Council is currently advertising for appropriately-qualified candidates for appointment to the DLC.
The DLC will have a very strong role in the operation of the new liquor licensing environment. Whereas, the previous DLA dealt only with unopposed applications and opposed special licence applications, the DLC will deal with all applications and renewals, whether opposed or not.
Further to that, the DLC’s decision-making role cannot be delegated to Council staff. Whereas in the past, liquor licensing inspectors may have dealt with some matters themselves, under the DLC environment an inspector can only provide a report to the DLC to assist it with its decision making.
Any enforcement action or appeals will go to the ARLA.
The whole aim of the new regime is to develop greater decision-making consistency. But clearly, the role of the District Licensing Committee is an important one for local operators.
As with planning commissioners under the Resource Management Act, it is likely that Council will maintain a register of DLC members, and will operate more than one District Licensing Committee depending on the expertise required for each decision.
As previously stated, the District Licensing Committee will be in place by 18 December 2013.
Secondly, lets look at the Local Alcohol Policy.
This is a critical matter for operators in the District. The LAP may contain a number of matters which could have a direct bearing on licensees’ businesses, including:
1. rules regarding trading hours
2. possible limits on the location of licensed premises in relation to certain facilities such as schools and churches
3. possible density limits in respect of licensed premises. Obviously, with the way central Queenstown works, anything in this regard could be highly contentious.
4. one way door restrictions.
The LAP must consider certain criteria, including:
a) the objectives and policies of the District Plan
b) the number of licences of each kind, their location and opening hours
c) liquor ban areas
d) demography of the resident population
e) demography of the visitor population
f) overall health indicators of the resident population
g) the nature and severity of alcohol-related problems in the District
Consultation and Timing
There is every likelihood that no local alcohol policy will be in place in the Queenstown Lakes District until mid-2014.
Prior to that though, a draft policy will be developed and consulted on. This is likely to be available early next year. The consultation process will allow for submissions regarding the draft, and hearing by Council, after which a provisional LAP will be adopted by Council.
Once the provisional LAP is adopted, likely to be by mid 2014, there will be a further appeal period. If no appeals have been received after 30 days, then the local alcohol policy comes into force.
So, our expectation is that you will have an opportunity for input before a draft LAP is developed later this year. You will then have a chance to submit regarding the draft LAP early next year before the provisional LAP is adopted.
It is critical that you make a submission on the draft LAP, if you want to retain the right to appeal any element of the provisional LAP.
We act for a large number of people who are directly involved in the sale and supply of alcohol throughout the District. We therefore intend to watch closely as matters develop, particularly in relation to the development of a Local Alcohol Policy, the formation of the District Licensing Committee, and the way that the new Act is interpreted in relation to some of the matters above.
We encourage you to contact us on 03-4500000 or rem@prlaw.co.nz if you have any queries regarding the brave new world you are about to enter.