Rotorua considers freeze on new bottle stores to curb alcohol harm

Rotorua may put a freeze on new liquor stores opening in a bid to curb alcohol harm. Photo / 123rf

Rotorua could see a freeze on new bottle stores opening and an earlier cut-off time for bars as it addresses high alcohol harm in the community.

A council decision to consult on its updated alcohol policy is set for Wednesday, with the majority of changes relating to off-licences.

The draft policy’s stricter alcohol sales rules include reduced trading hours for off-licences while inner-city bars would need to stop selling alcohol by 2am, an hour earlier than they do currently.

Rotorua Lakes Council staff are expecting strong views from the public if it does consult, following 600 responses to a survey on the topic.

The city recently set a new national record for people opposing a new liquor licence, with hundreds against a boutique bottle shop setting up in the CBD.

Two workshops have been held since September with proposed policy options discussed and guidance sought on preferred options.

The policy would work to ensure the sale, supply and consumption of alcohol occurs safely and responsibly and to minimise alcohol-related harm.

It should reflect community preferences and influences district licensing committee decisions on licensing applications.

The policy covers on-licences, such as restaurants serving wine for dine-in customers, off-licences such as bottle shops and supermarkets, club licences and special licences.

Rotorua's alcohol policy is set to be updated. Photo / 123rf

A February workshop was told there were 56 off-licences in the district and about how alcohol sales benefited the economy, particularly via tourism.

The alcohol industry, excluding hospitality, contributed $1.92 billion to gross domestic product nationally and about 31,000 jobs. There were another 173,000 hospitality jobs.

Over 80% of alcohol is sold from off-licences.

The workshop also heard the Ministry of Health estimated the cost of alcohol harm to be $9.1b in 2023.

The harm included road crashes at $2b, intimate partner violence ($281 million) and child maltreatment at ($74m).

Police data showed alcohol harm was high in Rotorua, with 4568 alcohol-related harm incidents in 24 months around Pukuatua St alone.

Pukuatua St is in the Rotorua CBD. Photo / Andrew Warner

Health New Zealand Te Whatu Ora statistics shared at the workshop showed between 2021 and 2023, 1.2% to 2.3% of admissions to Rotorua Hospital emergency department were due to alcohol.

Just under half of all admissions say alcohol intake is “not known”.

The workshop presentation described Rotorua as having a high level of deprivation, one of the highest crime rates in the country, a younger population and a high Māori population, with 43.5% compared to national average of 16.5%.

Youth, Māori and deprived communities were all at increased risk of alcohol harm.

Restrictions considered

Councillors will vote on whether to approve the Draft Statement of Proposal on the Local Alcohol Policy 2025 for consultation on Wednesday.

The draft includes a three-year freeze on new off-licence approvals and a presumption against them afterwards.

This would aim to allow a focus on reducing alcohol harm, including from existing premises. It could also reduce competition.

Another proposal was reducing trading hours to 7am-9pm, generally an hour less than now – similar to Auckland’s recent policy change.

New off-licences would be required to engage with “a wider set of sensitive and community facilities” within 200 metres, before applying. This included hospitals and rehabilitation centres.

On-licenced premises in the inner-city would need to stop selling alcohol by 2am under the proposal. Photo / Andrew Warner

Under the proposal, on-licenced premises in the inner-city would need to stop selling alcohol by 2am instead of 3am.

This could reduce the burden on emergency services, but also had the “potential to reduce nightlife options for residents and tourists”.

The Wednesday meeting agenda, prepared by strategic policy adviser Alexandra Geraghty, said the pre-consultation community survey had more than 600 responses, “suggesting that this consultation will attract the same level of attention”.

“Respondents generally had strong views on this topic, and as this policy has the potential to impact on-licensed business owners it is likely this consultation will be divisive.”

The application was for a boutique bottle store on Hinemoa St in central Rotorua. Photo / Google Maps

A recent application for a new off-licence in Rotorua’s CBD set the new national record for objections received, suggesting “significant” interest from the public about the topic.

If approved, consultation would run from February 28 to March 31, followed by a hearing and final decision.

The seven-member district licensing committee refused two managers' applications last year, declined one on-licence variation and one temporary authority.

Record opposition to application

The application that attracted record opposition was to open a Rotorua Boutique Liquor Store in a former Hinemoa St dairy. It would be run by two certified managers.

Speaking to Local Democracy Reporting, Communities Against Alcohol Harm navigator Dr Liz Gordon said alcohol harm in the city was a major reason people objected to the application and asked for the charity’s help opposing it.

There were also concerns about “too many” liquor stores and the address being near vulnerable communities and sensitive sites, she said.

An “absolutely extraordinary” 730 oppositions were lodged, including from people outside of the city.

She said the previous record for opposition was 500 against an application for a Wellington liquor store in 2018-19.

The Rotorua application was made by liquor licensing consultant WA Consulting on behalf of Rotorua businessman Rahul Sethi.

It said the owner intended to stock unique and “top-shelf” types of beer, wine and spirits, as well as more common brands.

Staff would do regular training and self-testing; efforts would be made to keep amenity and good order; and the business would adhere to alcohol sale rules.

Steps it would take to reduce alcohol harm included not serving intoxicated people or minors and vigilantly monitoring who was “lurking” outside the shop

“The director is well experienced in running a business and working with people … and understands the importance of contributing positively to the community.”

A council spokesperson said the application was still being processed with no hearing confirmed or set yet.

Sethi has been contacted for comment.

Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist since 2019.

- LDR is local body journalism co-funded by RNZ and NZ On Air.