1 Economic & Regulatory Services Committee
Doc No: RDC-302770 4 December 2012
File No: 33-49-150
ROTORUA DISTRICT COUNCIL
His Worship the Mayor
Chairperson and Members
economic & regulatory services committee
alcohol reform bill – formation of the district licensing committee
Report prepared by: Neven Hill, Manager, Regulatory Services
Report approved by: Mark Rawson, Group Manager, Economic & Regulatory Services
1. PURPOSE
The purpose of this report is to brief the elected members on the requirement to formulate a District Licensing Committee (DLC) for the Rotorua District under the new requirements of the Sale and Supply of Alcohol Act, once enacted, currently the Alcohol Reform Bill.
2. RECOMMENDATION
2.1 THAT THE REPORT “Alcohol reform bill – formation of the district licensing committee” BE RECEIVED and contents noted.
2.2 THAT THE COMMITTEE RECOMMEND TO COUNCIL that councillor ______be appointed the chairperson of the rotorua district licensing committee
2.3 THAT council resolve to seek nominations from suitably qualified individuals from the public to be registered as members of the rotorua district licensing committee, and
2.4 THAT THE CHAIRPERSON OF THE DISTRICT LICENSING COMMITTEE PLUS THREE COUNCILLORS FORM THE APPOINTMENT PANEL TO SHORTLIST, INTERVIEW AND RECOMMEND TO COUNCIL WHO THE REGISTERED MEMBERS OF THE DISTRICT LICENSING COMMITTEE SHALL BE.
3. EXECUTIVE SUMMARY
The Alcohol Reform Bill (the Bill) introduces the formation of the District Licensing Committee within a territorial authorities’ (TA) area. This committee may either be established and maintained by an individual TA, or jointly with one or more other territorial authorities. Whilst currently the Bill is still before the house, it is envisaged that the final reading and Royal assent will be given before the end of this calendar year. The role and responsibilities of the District Licensing Committee will come into effect 12 months after Royal assent. This District Licensing Committee replaces the current District Licensing Agency (DLA) and has far greater powers and functions than that of the previous body.
The current timing caused by the delays of the house, mean that the District Licensing Committee requirements may come into effect in the October – December period of 2013 which is around the timing of the Local Body elections and formation of the new Council. It is envisaged that the normal provisions of Council will apply to the functions of the DLC during this period, should this timing arise.
The DLC shall consist of three members appointed by the TA. These are the chairperson who must be a member of that TA (this means an elected member of this TA), and two other members who must be appointed from the TA’s list of approved members. These cannot be elected members of a TA. The members on the approved list will be appointed for a period of up to five years and may be approved for further five year periods.
Fees and allowances for members of the DLC members will be set and paid at a rate and of a kind determined by the Minister in accordance with the fees framework. This is the same framework determined by the Government for statutory and other bodies in which the Crown has an interest. The cost of meeting these fees will be paid by the Council and will come from the licence fees set that will cover the total liquor function for the District.
The Chief Executive may also appoint on the recommendation of the TA a commissioner or commissioners and that person/s shall have all the powers, functions and duties of the Chairperson of the committee. It is seen that this type of appointment would be a rare situation, maybe along the lines of the use of commissioners appointed for District Plan matters.
There is provision that should a hearing in the opinion of the DLC require more specialised input, the DLC can apply to the Alcohol Regulatory and Licensing Authority’s (ARLA) chairperson for leave to have that matter heard by that specialist board. This is one of the functions of the licensing body ARLA that will replace the authority known as the Liquor Licensing Authority (LLA.)\
4. BACKGROUND
The Alcohol Reform Bill was formulated after the government of the day requested the Law Commission to complete a ground up review of the Sale of Liquor Act 1989 based on much publicised community outrage at their inability to have any real effect on the proliferation of mainly Off-Licence liquor outlets in their communities and the harm caused by alcohol in general. The Law Commission completed a New Zealand wide review which included holding many public meetings across New Zealand and the report “Alcohol in our Lives: Curbing the Harm” was produced. This report is commonly referred to as the “Palmer Report” as Sir Geoffrey Palmer headed the team on behalf of the Law Commission.
As a response to the communities feed back, and the recommendations of the Law Commission, Government saw it as necessary to devolve a greater role in the administration and enforcement of the proposed new laws. Leading from this decision the Bill contains the provisions for the formation, setup and roles and responsibilities of the new DLC. This will be a semi-judicial function with the full capability to hear and determine all liquor applications including manager’s certificates, made within the District. Enforcement proceeding brought by any of the reporting agencies will be lodged with the new ARLA, this is to ensure consistency of approach and enforcement across New Zealand.
All hearings of the DLC must be treated as being a Commission of Inquiry under the Commissions of Inquiry Act 1908 and all subsequent changes. The DLC will have the power to issue summonses for appearance before it, and also for the production on any documentation that the DLC determines will assist with and help with determining the application currently before it. All hearings are to be held in public.
If no objection to an application is filed within the prescribed time, the DLC may either grant the application on the papers or convene a public hearing to consider the application, as stated prior if the DLC wishes that ARLA hears the application they first must seek leave of the chairperson of ARLA to do so.
There are several sections that contain the detail of how a hearing is to be heard, who may appear before the DLC, who may call witnesses and cross examine these people, the relevant provisions around timing of the hearing, that all decisions shall be given in writing, determinations and the appeal process, the writer has not gone into any detail of these provisions as that are issues that will be addressed at a later date.
5. STRATEGIC PURPOSE / POLICY / LEGISLATION
This setup and responsibilities of the DLC is a new requirement under the Sale and Supply of Alcohol Act, and as part of far reaching changes enacted as a response to what was seen as failings of the current Act. The formation of the DLC requires Council to decide who the elected member will be as chairperson of the committee and subsequently approve the list of members from the public, to make up the full compliment of this committee.
6. ASSESSMENT OF SIGNIFICANCE
This will not trigger Council’s significance policy.
7. ASSESSMENT OF SUSTAINABILITY ISSUES
No factors need to be considered on sustainability.
8. CONSULTATION
There is a requirement for Council to establish and maintain a list of licensing committee members, which will necessitate that nominations will be called for from people that meet the criteria and once approved will make up the other members sitting as part of the DLC.
The following is the criteria as outlined in the Bill;
A person must not be included on the list if;
· unless that person has experience relevant to alcohol licensing matters, and
· the territorial authority believes that person has, directly or by virtue of his or her relationship with another person, such an involvement or appearance of involvement with the alcohol industry that he of she could not perform his or her duties without actual bias or the appearance of bias, or
· the person is a constable, a Medical Officer of Health, an inspector, or an employee of the territorial authority.
Whilst the Bill does not address the preferred skill set that a person who is to be appointed should have, to assist the following skills are those that we see as the minimum required. We request that Councillors confirm these as the base set of skills and add any additional ones prior to seeking nominations from the public. They are;
· basic understanding of legislation and adjudication skills
· basic advocacy skills
· be able to contribute in an appropriate manner to a hearing in terms of the Commissions of Inquiry Act 1908
· empathetic to and balancing the needs of community expectations (via the adopted LAP) versus the requirement for a vibrant city meeting the needs of business and visitors alike
· understanding the harm alcohol can cause in our community whilst being cognisant of the hospitality industries needs to run successful businesses
9. OPTIONS AND ANALYSIS (INCLUDING FINANCIAL ANALYSIS – where appropriate)
The new Act and Regulations once promulgated will allow for total funding of the liquor function of Council, including the new DLC functions. This will be funded by way of fees, which the component make up of these is still under consideration prior to the regulations been given Royal Assent.
10. INCONSISTENT DECISION
This function, although somewhat changed to how it has been carried out previously is not inconsistent with Council’s LTP.
11. ATTACHMENTS
Attachment 1 – Outline of the Implementation and transitional period of the Sale and Supply of Alcohol Act