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Manurewa Local
Board
10 July 2014
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Local board role in alcohol licence applications
File No.: CP2014/15175
Purpose
1. The purpose of
this report is to seek local board feedback on the role local boards could play
in alcohol licence applications, a process that was established by the Sale and
Supply of Alcohol Act 2012.
Executive
summary
2. The Sale and
Supply of Alcohol Act 2012 (the Alcohol Act) establishes processes for alcohol
licence applications. Some local boards wish to have input into the
application process, due to concerns about alcohol-related harm within some
Auckland communities.
3. To inform the
discussion about the role of local boards in alcohol licence applications,
Local Board Services has drafted an issues paper for consideration by local
boards. Local boards’ formal feedback is being sought on this issue. This
formal feedback will inform a report to the governing body on this issue. The
report will seek the governing body’s decision on the preferred option for
local boards to provide input into alcohol licence applications.
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Recommendation/s
That the Manurewa Local Board:
a) provide
feedback on the preferred option for local boards to provide input into
alcohol licence applications.
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Comments
4. The Alcohol Act
establishes processes for alcohol licence applications.
5. The governing
body has a number of roles under the Alcohol Act.
· It sets a local alcohol policy for the
region, with input from local boards. This establishes the overall policy
framework, covering matters such as location of licenced premises and maximum
trading hours. The governing body has developed a draft local alcohol policy
for public consultation.
· It establishes District Licensing
Committees (DLCs), which have responsibility for all
uncontested and contested licensing applications.
· It has the statutory power to object to
licence applications (although it is unlikely that the governing body would
exercise this power).
6. Local boards provide input into the development by the governing
body of the local alcohol policy. Local board members can also be appointed to
sit on DLCs. Under current Auckland Council policy, they cannot hear
applications relating to their local board area. Local boards do not currently
have the power to object to licence applications
7. Local boards
have standing under the Alcohol Act to object to licence applications, as a
local board can be expected to have a greater interest in the issue than the
public generally. However, in order to exercise this, the governing body must
first allocate or delegate the power to object to local boards.
8. Given the role
of local boards as advocates for their communities and the strategic importance
placed on managing alcohol related harm by a number of them, it is reasonable
to expect that at least some local boards will wish to express a view on
alcohol licence applications.
9. To inform the
discussion about the role of local boards in alcohol licence applications,
Local Board Services has drafted an issues paper which is attached at
Attachment A. The issues paper sets out the role the governing body and local
boards currently have under the Alcohol Act, the process for licence
applications under the Alcohol Act and options for local board involvement in
these.
10. Feedback from
local boards is being sought on the preferred option for local boards to provide
input into alcohol licence applications. This formal feedback will inform a
report to the governing body on this issue. The report will seek the governing
body’s decision on the preferred option for local boards to provide input into
alcohol licence applications. All formal local board feedback will be compiled
into a report and included as an appendix to the governing body report.
Consideration
Local
board views and implications
11. Local board
views are being sought via this report. An outcome of this process could see
local boards playing a different role in alcohol licence applications to what
they presently do.
Maori
impact statement
12. Māori are likely to be interested in and
impacted by DLC decisions on alcohol licence applications. This is an issue
for the DLCs when considering alcohol licence applications.
Implementation
13. Local board
feedback will be analysed and will inform a report to the governing body. This
report will seek a decision from the governing body on their preferred role of local
boards in alcohol licence
applications.
Attachments
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No.
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Title
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Page
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aView
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Local board role in alcohol licence applications –
issues and options
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25
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Signatories
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Authors
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Chris Gulik –
Policy Advisor
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Authorisers
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Karen Lyons –
Manager Local Board Services
Rex Hewitt –
Relationship Manager
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Manurewa Local
Board
10 July 2014
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Local Board Role in
Alcohol Licence Applications – Issues and Options
Introduction
The Sale and Supply of Alcohol Act 2012
(the Alcohol Act) establishes processes for alcohol licence applications. Some
local boards wish to have input into the application process, due to concerns
about alcohol-related harm within some Auckland communities. This issues paper
considers the options available for local board input for discussion.
Roles of the governing body and local boards
The governing body has a number of roles under the Alcohol Act.
· It sets a local alcohol policy for the
region, with input from local boards. This establishes the overall policy
framework, covering matters such as location of licenced premises and maximum
trading hours. The governing body has developed a draft local alcohol policy
for public consultation.
· It establishes District Licensing
Committees, which have responsibility
for all uncontested and contested licensing applications.
· It has the statutory power to object to licence
applications (although it is unlikely that the governing body would exercise
this power).
Local boards provide input into the
development by the governing body of the local alcohol policy. Local board
members can also be appointed to sit on District Licensing Committees. Under
current Auckland Council policy, they cannot hear applications relating to
their local board area.
Local boards do not currently have the power
to object to licence applications. Local boards receive their powers from the
Local Government (Auckland Council) Act in three different ways:
· Statutory powers – these include providing input into
governing body strategies and policies (such as the local alcohol policy),
developing local board plans, and agreeing local board agreements with the
governing body. The Auckland Council Act does not provide local boards with
the statutory power to make objections on licence applications.
· Allocated powers – local boards are allocated
non-regulatory decision-making powers for a wide range of local activities.
This allocation is set out in the Long-term Plan. It does not include the
power to make objections on licence applications.
· Delegated powers – the governing body can delegate
powers to local boards. While it has done this for certain matters (such as
swimming pool fencing), it has not delegated power to make objections on
alcohol licence applications.
Local boards have standing under the
Alcohol Act to object to licence applications, as a local board can be expected
to have a greater interest in the issue than the public generally. However, in
order to exercise this, the governing body must first allocate or delegate the
power to object to local boards.
Local boards are in many ways the face of
local government in their communities. They play an important role in
understanding, representing and advocating for community priorities and
preferences. This includes providing the “community voice” on social issues.
While local boards cannot speak for all members of their communities, they have
gained, through consultation on their local board plans, local board
agreements, and other engagement activities, a good understanding of the
significant community issues.
Concern about alcohol related harm is one
such issue which has been raised in a number of local board areas, with harm
minimisation a consistent strategic priority in a number of local board plans.
This is in many ways consistent with the alcohol reforms, as reflected in the
Alcohol Act. These reforms aim to improve New Zealand's drinking culture and
reduce the harm caused by excessive drinking. In doing so, the Alcohol Act
also seeks to increase the ability of communities to have a say on local
alcohol licensing matters, as well as providing for local-level decision-making
for licence applications, through District Licensing Committees.
Given the role of local boards as advocates
for their communities and the strategic importance placed on managing alcohol
related harm by a number of them, it is reasonable to expect that at least some
local boards will wish to express a view on alcohol licence applications.
Licence application process
The applicant for a licence is required to
attach notice of the application to a conspicuous place on or adjacent to the
site to which the application relates and give public notice of the
application. A person may object to the grant of a licence only if he or she
has a greater interest in the application for it than the public generally. An
objection must be in writing and filed with the licensing committee within 15
working days after the first publication of the public notice of the making of
the application.
Once an application is made, an inspector
makes inquiries and files a report with the District Licensing Committee. The
police and medical officer of health for the area also file a report if either
has any opposition to the application. Local board members receive a weekly
list of applications for their local area, which is downloaded by democracy
advisors from the Auckland Council intranet.
The District Licensing Committee determines
whether a hearing will be convened. If there are any objections to the
application, a public hearing is required unless the objection is considered
vexatious or outside the scope of the Alcohol Act, the objector does not
require a public hearing, or the application is withdrawn. If no objection is
received, then the District Licensing Committee can consider the application
based on the papers, without requiring a public meeting.
The Alcohol Act sets out the criteria to be
considered by the District Licensing Committee when considering a licence
application. Any objection to an application must also relate to these
criteria, otherwise it will be outside the scope of the Alcohol Act. A copy of
the relevant section is attached. As well as considering objections, a District
Licensing Committee can seek views from other parties on a licence application
(including local boards), if it is of the opinion that the information may
assist it to deal with the application. The Alcohol Act also provides for an
appeal process to the Alcohol Regulatory and Licensing Authority.
Options for local board involvement
1. Local board input
into the development of the local alcohol policy
Local
boards have had significant early engagement on the draft local alcohol policy
and will now be providing formal feedback to the governing body. Policy
development is a key governance role and sets the framework for subsequent
operational decision-making. The local alcohol policy is the appropriate place
to address the broader concerns about alcohol-related harm and put in place
measures to manage the impact on specific communities, through for example,
more stringent controls for specific areas. A well developed policy arguably
avoids the need for political involvement in specific licence applications.
2. Local board views
are provided to the District Licensing Committee
District
Licensing Committees have broad powers to seek information on licence
applications. A committee can receive a local board’s views on a licence
application if it is of the opinion that the information may assist it to deal
with the application. There is no statutory obligation on a District Licensing
Committee to seek out or to receive and take into account local board views.
However, there has been an openness on the part of District Licensing
Committees to obtain local board views.
One
way to achieve this is to attach local board views on particular licence
applications to the inspector’s report to the District Licensing Committee.
This is similar to the resource consent application process, where any local
board views are appended to the officer’s report. It is then up to the
District Licensing Committee to determine whether it takes into account the
local board views and the weight given to it. This approach can lead to a
situation where an inspector’s report attaches a contrary local board view, but
it does provide an avenue for local boards to express a view on particular
licence applications without the requirement for a specific allocated or
delegated power from the governing body.
3. Local board are
either allocated or delegated the power to object
The
governing body could either allocate or delegate to local boards the power to
object to licence applications. While an express power contained in the
allocation provides clarity and certainty to local boards and their
communities, it is time consuming and requires the use of the special
consultative procedure. The allocation is reviewed as part of the long-term
plan, meaning that local boards would not receive this power until 1 July
2015. Alternatively, the governing body could delegate the power to object to
licence applications to local boards. A delegation can be put in place at any
time by governing body resolution, but it can also be revoked at any time.
The
resourcing implications for the Auckland Council organisation is an important
consideration when weighing up the pros and cons of providing local boards with
the power to object to licence applications. From 18 December 2013, there have
been over 3,800 licence applications across the Auckland region and 26
hearings. Of these licence applications, 119 were for off-licences, 387 for
on-licences, and 1158 for special licences (with most of the remainder relating
to managers certificates). During this period only three local boards have
sought to object to licence applications under the Alcohol Act (representing
five objections in total). While this small number of objections is unlikely
to pose any significant resourcing issues for the organisation, this would
change if there was a major increase in local board objections. Local boards
will need to be resourced to prepare objections with appropriate supporting
evidence. Local board members will also need to prepare for and attend
hearings. Depending on the number of local board objections, this could
require considerable officer and local board member time.
Another
issue is the reputational implication for council if a local board
inappropriately objects to licence applications. This is likely to be an issue
if a local board decides, as a matter of principle, to object to all licence
applications, without appropriate evidence to demonstrate that the objection
falls within the scope of matters that can be raised under the Alcohol Act.
Reputational issues also arise if local boards seek to appeal a decision by the
District Licensing Committee, as effectively one arm of Auckland Council (the
local board) is objecting to decisions made by another arm of Auckland Council
(the District Licensing Committee).
The
Alcohol Act establishes a new regime, which is in its early stages of
development in Auckland. The local alcohol policy is not yet in place and the
District Licensing Committee structure will be reviewed after its first year of
operation. If local boards were to be given the power to object to licensing
applications, a delegation may be the better short-term option as it enables
the implications to be tested alongside the monitoring and review of the
District Licensing Committee structure. A longer term approach can then be
considered within the broader context of the alcohol management regime. Issues
associated with appeal rights could also be considered at that time.
4. Local boards
supporting community involvement in licensing process
The
Alcohol Act seeks to bring communities closer to decision-making around alcohol
licensing. The licensing processes need to be accessible to communities.
Currently there is little support available to empower communities to take an
interest or participate in the process. Further work is needed to make it
easier for the community to access information and receive advice and support
on alcohol licence applications. Local boards could focus on supporting and
building the capability of community groups to object to licence applications,
where appropriate, and to present to District Licensing Committees at
hearings. This can be done alongside any of the options raised above for local
board involvement in the licensing process.
Sale and Supply of Alcohol Act 2012
Section 105 - Criteria
for issue of licences
(1) In
deciding whether to issue a licence, the licensing authority or the licensing
committee concerned must have regard to the following matters:
(a) the object of this Act:
(b) the suitability of the applicant:
(c) any relevant local alcohol policy:
(d) the days on which and the hours during which the
applicant proposes to sell alcohol:
(e) the design and layout of any proposed premises:
(f) whether the applicant is engaged in, or proposes on the
premises to engage in, the sale of goods other than alcohol, low-alcohol
refreshments, non-alcoholic refreshments, and food, and if so, which goods:
(g) whether the applicant is engaged in, or proposes on
the premises to engage in, the provision of services other than those directly
related to the sale of alcohol, low-alcohol refreshments, non-alcoholic
refreshments, and food, and if so, which services:
(h) whether (in its opinion) the amenity and good order
of the locality would be likely to be reduced, to more than a minor extent, by
the effects of the issue of the licence:
(i) whether (in its opinion) the amenity and good order of the
locality are already so badly affected by the effects of the issue of existing
licences that—
(i) they would be unlikely to be reduced further (or would be
likely to be reduced further to only a minor extent) by the effects of the
issue of the licence; but
(ii) it is nevertheless desirable not to issue any further
licences:
(j) whether the applicant has appropriate systems, staff, and
training to comply with the law:
(k) any matters dealt with in any report from the
Police, an inspector, or a Medical Officer of Health made under section 103.
(2) The
authority or committee must not take into account any prejudicial effect that
the issue of the licence may have on the business conducted pursuant to any
other licence.
