February 2023
Executive Summary
The Restaurant Association supports the Sale and Supply of Alcohol (Community Participation) Amendment Bill. We recognise the importance of the community voice in the proliferation of venues licensed to sell and supply alcohol in their neighbourhoods.
We submit that the sale and supply of alcohol by on-licence venues carries a far smaller risk of harm to communities than off-licence venues, and recognition of this should be explicit in legislation.
Our membership is made up of more than 2,500 hospitality businesses where food is the hero of their operations—not alcohol. The sale of alcohol is supplementary – not central – to their business, and paired with the trading conditions of a Class 2 alcohol licence which are regularly enforced by staff, it is clear that the sale of alcohol alongside a meal is not a part of the problem that has developed as a result of failings in the Primary Act.
As such, the Restaurant Association makes the following recommendations:
- Recommendation 1: that the Bill include explicit guidelines that determine which alcohol licences have the potential to cause the most harm.
- Recommendation 2: that LAPs be required to implement separate regulatory systems for the number and proximity of licensed venues, based on the primary purpose of the business which holds such a licence.
Introduction
The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to make a submission on the Sale and Supply of Alcohol (Community Participation) Amendment Bill, and we wish to appear before the Select Committee to speak to this submission.
We support the Bill, and recognise the importance of the community voice in the proliferation of venues licensed to sell and supply alcohol in their neighbourhoods.
Our submission is focussed on the potential impact of the Bill to those in our sector who operate on-licence venues, and are already heavily regulated by the conditions of holding such a licence. We are not opposed to these trading conditions – in fact, they are common sense rules which ensure the safe and responsible sale and supply of alcohol in premises with a Class 2 alcohol licence.
While off-licence venues have many of the same trading conditions, there is continuous and regular media coverage of those operating on such a licence who have ignored those conditions, and in doing so skirted their responsibility to the communities in which they operate.
Our more than 2,500-strong membership is made up of hospitality businesses where food is the hero of their operations. Nevertheless, many offer alcoholic beverages as a supplement to the culinary experience they provide. Along with this service, our members’ staff are trained on the responsible service of alcohol to comply with their trading conditions and provide a safe dining experience for their customers.
It is clear that a large part of enabling that problem comes from the proliferation of off-licence venues, and those on-licence venues whose primary business is not food. While the granting and renewal of licences will be subject to future LAPs, we submit that the Bill should include explicit guidelines that determine which alcohol licences have the potential to cause the most harm. These guidelines must subsequently be taken into account by Territorial Authorities when adopting an LAP.
- Recommendation 1: that the Bill include explicit guidelines that determine which alcohol licences have the potential to cause the most harm.
We support the removal of the right to appeal Local Alcohol Policies (LAPs). The adoption of LAPs will undoubtedly provide a clearer and more streamlined framework for the sale and supply of alcohol across Territorial Authorities. We are concerned, however, that an unintended consequence of this Bill will be the removal of on-licences as a result of a strict interpretation of LAPs by District Licensing Committees.
We submit that, pursuant to the guidance determining which alcohol licences cause the most harm, LAPs be required to implement separate regulatory systems for the number and proximity of licensed venues, based on the primary purpose of the business which holds such a licence.
- Recommendation 2: that LAPs be required to implement separate regulatory systems for the number and proximity of licensed venues, based on the primary purpose of the business which holds such a licence.
Furthermore, the changes to rules regarding inconsistencies with renewal applications also have the potential to be interpreted strictly. We are concerned that these changes would create a precedent of declining the renewal of licences based solely on the number of licensees operating in any given area, without considering the potential for harm that each alcohol licence carries with it. This can be avoided through the implementation of separate regulatory systems as we have suggested, and the Restaurant Association is ready and willing to assist both Central Government and Territorial Authorities with this work.
Auckland alone is home to almost seven and a half thousand hospitality establishments, and this brings with it a significant contribution to Auckland’s economy—approximately five billion dollars each year.
Across the country, our members’ businesses add to the vibrancy and landscape of our towns and suburbs – they are an integral part of our national tourism brand. While an alcohol licence is by no means the crux of our members’ operations, after two years of hampered trade due to the global pandemic, any loss of revenue has the potential to be the final blow to operators in our sector.
We implore the Committee to consider the unintended consequences that may arise from this Bill, and to adopt our recommendations which we believe will ensure the purpose of both this Bill and the Primary Act are being upheld—without negatively impacting the Hospitality industry.