Speech to NZ Institute of Liquor Licensing

Hon Simon Power
Minister of Justice

2 September 2010

Speech to
New Zealand Institute of
Liquor Licensing Inspectors Conference
Wellington

Thank you for inviting me to speak to you today.

I’d particularly like to acknowledge Institute President Murray Clearwater.

I’m very keen to hear your views on the Government’s alcohol reform package, so instead of delivering a formal speech I’ll make a few relatively brief remarks and then take your questions.

When I spoke to last year's conference, I had just received a copy of the Law Commission’s discussion document 'Alcohol in Our Lives'.

A year on, I’m pleased to say the Government has just announced its response to the commission’s final report.

We expect to introduce a bill to Parliament in the middle of next month and pass it before the end of next year.

It was clear to this Government from day 1 that the issue of alcohol was going to be a priority, particularly in terms of addressing the drivers of crime, with the Police reporting that alcohol is a factor in a third of all offending.

That’s why one of my first actions as Minister of Justice was to ask the Law Commission to bring forward its review of alcohol laws by one year.

Broadly speaking, the Government’s reform package aims to achieve less alcohol-related harm – including deaths, family violence, drunken disorder, and ACC claims – and a reduction in our binge drinking culture, particularly among young people.

To achieve these goals we have put together an integrated package which recognises that alcohol is causing considerable harm but which doesn’t delve too deeply into peoples' personal lives.

We have made the decision that this package strikes an appropriate balance between harm reduction and trusting responsible New Zealanders to make their own decisions about their alcohol consumption.

The Government is adopting, in full or in part, 126 of the 153 Law Commission's recommendations, and we have added other proposals of our own.

Some people argue that our response doesn’t go far enough. I disagree. My job is to design public policy that actually works.

We are aware that legislation alone will not turn our binge-drink culture around and eliminate harm. But legislation can contribute to a culture change.

The Government’s alcohol law reform package will support a moderate drinking culture through controls on the availability and proliferation of alcohol.

The alcohol law reform Cabinet paper itself contains 202 decisions. I won’t go through each of those recommendations today, rather I’ll confine my comments to the role of liquor licensing inspectors under the new regime.

As the Law Commission pointed out, licensing inspectors are at the centre of the current licensing regime.

The Government recognises that for the new regime to operate well we need to create the right settings and give you the right tools to support you in your work.

To do this, the Government is making three main changes to the role of liquor licensing inspectors.

First, we will enhance the independence of licensing inspectors.

Under the new regime, the role of a licensing inspector will be more clearly defined in statute. The new alcohol reform legislation will expressly state that licensing inspectors have an independent statutory function.

Your institute has repeatedly told us that your role involves far more than just approving licence applications. So, to clarify your mandate, new legislation will make it clear that you have a reporting, monitoring, educative, and enforcement role.

Your independence will be further reinforced through your employment arrangements.

At present, you are employed by territorial authorities. Under the new legislation, you will be employed by the chief executive of a territorial authority. This is a fine distinction, but it will ensure there is a degree of separation between licensing inspectors and District Licensing Committees, while enabling you to maintain essential links within your territorial authority.

Secondly, the new Act will equip you with greater operational tools.

Licensing inspectors will be able to oppose licence applications on a wider range of grounds, including the object of the Act, the provisions of a relevant local alcohol policy, and whether the grant or renewal of a licence would have a negative effect on the amenity of the area.

You will also be able to request that a much wider range of conditions be imposed on a licence, including any reasonable condition designed to minimise harm or facilitate enforcement.

Where you need to appeal against a decision to the Licensing Authority, the applicable fee will be waived.

Significantly, inspectors will be given the same rights of entry as the Police currently have under the Sale of Liquor Act 1989.

Like the Police, you will also be able to issue an infringement notice for breaches of a liquor licence. An infringement notice will provide you with an immediate sanction that should cut down on the unnecessary time and cost associated with applying to the Licensing Authority.

The maximum penalty for a licence breach will be set by regulations and will not exceed $1,000.

Thirdly, the new Act will improve the information sharing between territorial authorities.

The Government will assess the feasibility of a nationwide shared information system on liquor licensing. Such a system could provide licensing inspectors with a centralised database where all records about licensing are held.

In addition, we’re investigating whether territorial authorities should collect data, as the Far North Co-Location Project does, so changes in the nature and extent of alcohol-related harm in an area can be monitored and evaluated.

There is one more change that the Government is considering, although this work is on a separate track to the legislative package.

To reflect the enhanced role that inspectors will play under the new regime, the Government will give consideration to more rigorous training.

This will build on the work the institute has already done on the National Certificate in Compliance and Regulatory Control – Liquor Licensing.

So, it’s fair to say there are some big changes coming to the way licensing inspectors operate.

The next few years will be challenging as we develop and then bed in a cohesive and enduring alcohol regime.

As licensing inspectors you have a unique perspective of the alcohol law framework and I'm keen to draw from that expertise as the bill progresses.

You will play a big part in ensuring that the legislation, whatever its final form, works; so your input and then your application of that legislation is essential if we are to effect the culture change the public clearly wants.

I appreciate the invitation to speak to you today and I look forward to working with you as the bill progresses.

ENDS