News

The future of many local bars remains uncertain as substantial fee increases under the new alcohol law reforms threaten their livelihood. New legislation will see bar owners fronting the full cost of licensing applications, which are currently 50% subsidised by ratepayers.

Critic spoke with Council Liquor Licensing and Projects officer Kevin Mechen, who is assisting Dunedin city councillors to prepare an impact report concerning the new legislation. Mechen conceded that the new rules may well have a negative effect on the hospitality community: “Licensees may need to assess the viability of their businesses. [But] those premises that have a ‘good product’ shouldn’t be too affected.”

Mechen remarked that although councils generally subsidised licensing processes, with some areas subsidised by more than 50%, the reduction on the rate burden made possible through the licensing changes could only be seen “favourably”. The current system sees bar owners pay $793.24 for a licensing application but the new fee regime would see this double to about $1600, although specific fees had not yet been set by the Ministry of Justice.

The reforms would not mean bar owners would need to reapply for their licences straight away. “[Existing bar owners] will continue with the current regime, albeit with greater fees being involved,” Mechen said. However, the new rules require bar owners and off-licence liquor sellers to renew their licences more often.

Otago President of the Hospitality Association Mark Scully expressed his concerns to the ODT about the pressure the proposed changes will put on bar owners, especially given the current climate and already “difficult conditions”.

Newly created District Licensing Committees would replace the current District Licensing Agencies under the reform. These committees, which are to be chaired by an elected council member and two community representatives, would deal with all applications for liquor licences within the area. However, Mechen remarked that these changes will mean “even greater responsibility [is] placed on the Council” and a lack of resources may make it difficult to meet the obligations under the new legislation.

Jennie Connor, Chair of the University’s Alcohol Implementation Group, expressed “disappointment” on behalf of the AIG that the drinking age was not raised to 20, but again refused to disclose the intentions or views of the AIG with regard to any other aspects of alcohol law reform.