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Home / New Zealand

Government cracks down on alcohol industry, councils get more powers over sale, opening hours

Isaac Davison
By Isaac Davison
Senior Reporter·NZ Herald·
29 Oct, 2022 08:11 PM4 mins to read

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Justice Minister Kiri Allan announced changes to alcohol-related laws this morning. Photo / Mark Mitchell

Justice Minister Kiri Allan announced changes to alcohol-related laws this morning. Photo / Mark Mitchell

Councils will be given more power to set alcohol rules in their own areas under reforms announced by the Government today.

Further reforms are also being considered, including measures addressing the pricing and marketing of alcohol.

Justice Minister Kiri Allan said this morning the Government would "fix" the legislation which prevented communities from having a say about alcohol consumption and sales in their backyards.

As part of reforms under the National-led Government 10 years ago, councils were given powers to set their own policies for alcohol sales, such as the number and location of bottle stores.

But many councils' policies have been watered down, delayed or blocked because of endless appeals by supermarkets and the liquor industry.

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"The law isn't working as intended. Local communities should be able to set their own rules to reduce alcohol harm, but are being blocked at every step by the booze industry," Allan said.

She said the 2012 reforms were designed to give communities more say over how liquor could be sold and consumed. But that had not happened because of repeated appeals by the industry and alcohol lobby.

"Recently I met with a diverse range of communities in South Auckland who shared with me their experiences in battling against alcohol harm and attempting to reduce the ever-increasing availability of alcohol.

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"It was distressing to see the community prevented from taking action by the deep pockets and legal manoeuvres of those who benefit from alcohol sales."

Auckland Council's LAP was still not in place 10 years after the 2012 reforms. The policy, which would stop supermarkets from selling alcohol after 9pm, has been appealed all the way to the Supreme Court by Foodstuffs and Woolworths at a cost of $1 million.

The Government would also look at amending rules around the public's ability to object to a new or renewed alcohol license application and how objectors could make their case at a licensing hearing.

"Because the hearings are legalistic in nature, I've heard concerns that the current process can be too formal, with some community groups saying they've felt intimidated and harassed while under cross-examination by highly experienced lawyers representing the interests of those in the alcohol industry."

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Costco in NZ: Why Auckland store can't sell alcohol - and the man trying to make it a local election issue

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Green Party MP Chloe Swarbrick had proposed a change to the appeals process in a bill which is to be debated by Parliament this month. Photo / Jason Oxenham
Green Party MP Chloe Swarbrick had proposed a change to the appeals process in a bill which is to be debated by Parliament this month. Photo / Jason Oxenham

The proposed law change was a victory for Green MP Chloe Swarbrick, whose private member's bill had included a provision to remove the special appeals process. Her bill is set to be debated later by Parliament this month.

"After more than a year of our campaigning for this specific measure alongside communities across this country - notably, with the explicit support of councils who represent more than half this country's population - we welcome the Government's commitment to act," Swarbrick said.

She said the Government should now also adopt other parts of her bill, including measures to minimise alcohol marketing - especially in sports.

Allan said broader reforms around pricing and advertising were more complicated and would be reviewed separately by the Government.

"While no decisions have been made, our intention is to tilt the balance away from the alcohol industry towards giving community a greater voice and ensuring we are doing more to address the significant impact alcohol has on our communities, whānau and health system."

Allan said she did not want to make reactionary reforms and cause more harm by removing funding for grassroots organisations and sports teams.

The change to local alcohol policies would be introduced this year and is expected to be passed by mid-2023.

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Analysis by Alcohol Healthwatch found 42 councils had a LAP, but they covered only 34 per cent of New Zealand's population. The rest of the councils did not have an LAP, had abandoned the policy, or were facing appeals. Supermarket giants Foodstuffs and Progressive Enterprises (Woolworths) appealed against 94 per cent of LAPs, the analysis found.

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