- Hon David Seymour
- Hon Nicole McKee
Regulation Minister David Seymour and Associate Justice Minister Nicole McKee have today announced the next steps in the implementation of the Ministry for Regulation's Hospitality Sector Review.
"If we are going to unlock New Zealand's potential, we need to let Kiwi businesses get on with business," Mr Seymour says.
"The average lifespan of a café or restaurant is less than two years. The Review went straight to the source to find out why. The review received 247 written submissions, met directly with 13 sector representative groups, members of 27 District Licensing Committees (DLCs), 12 territorial authorities, 21 hospitality businesses and two community groups.
"One of the biggest issues people had was with the alcohol licensing regime. In some cases, getting a license costs more than the economic benefit of having one. In other cases rules make no sense. For example, a cruise ship can serve alcohol when the boat is moving, but can't when it's in the port.
"Bad regulations kill business. One business told the Review that delays in the licensing process, which in this case took over a year, ended with 30 staff being let go and $200,000 lost in investment, and over $1 million lost in potential lost profits. As soon as the licence was granted, the business had to be sold. Something has to be done. That's why we're fixing it."
"Kiwi businesses will soon face less red tape when applying for new alcohol licenses, and when they renew existing ones," Mrs McKee says.
"Regulators need to stop treating hospitality businesses who want to sell alcohol like common criminals.
"I have accepted all but one of the Review's recommendations to make alcohol licenses easier to get, more proportionate, and less costly. When alcohol is supplied in controlled environments such as restaurants or bars, the streets are safer."
"The Ministry for Regulation recommended that these changes be implemented by 2029. I would like to see them in place much sooner where that is practical."
The Government has accepted all but one of the Review's recommendations, including to:
- Reform alcohol licensing fees, including by removing annual fees, reducing renewal fees and introducing inspection fees
- Simplify licence applications and renewal processes
- Extend renewal periods for some alcohol licences
- Clarify and simplify the process and requirements to get an alcohol licence for the first time, including making licensing criteria more specific with a simpler application form
- Change District Licensing Committee arrangements, including allowing them to merge and setting specific membership and training requirements
- Remove current licence types and replacing them with a single risk-based alcohol licensing framework over time
- Introduce a nationwide information system about licences, certificates, compliance activity, performance, alcohol-related crime, incidents and health effects
- Make one existing agency and the corresponding Minister responsible for alcohol licensing regulations
"This is one more problem fixed by the Ministry for Regulation that Kiwis face, and the bureaucracy won't touch," Mr Seymour says.
