A member's bill that would allow alcohol license renewals to be assessed against local alcohol policies has passed its first reading tonight in Parliament.

Labour MP Louisa Wall's Sale and Supply of Alcohol Renewal of Licences Amendment Bill No 2 was a conscience vote but was voted on party lines passed 63 votes in favour by Government parties to 56 against by National.

Wall, the MP for Manurewa, says it makes no sense for renewals of off-licences to ignore local alcohol policies that are about protecting against the harms of excessive alcohol consumption in the community.

She said this hits home for her in places like South Auckland, where there are 156 off-licence premises.

National MP Chris Bishop questioned what problem the bill was trying to fix.

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The bill will be considered by the Government administration select committee.