A leaked Cabinet paper revealed ministers once considered slashing off-licence hours, but new reforms instead focus on curbing community objections to licensed premises, writes Catherine McGregor in today’s extract from The Bulletin.
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New rules for alcohol licences
The government yesterday unveiled a package of reforms to the Sale and Supply of Alcohol Act, with associate justice minister Nicole McKee describing the changes as a “practical” reset of the licensing regime. The most significant shift is to the rules on objections: only members of the local community will now be able to challenge a licence application, and applicants will have the right to respond at hearings. Other changes include simplifying rules for breweries and cellar doors, introducing digital ID verification for alcohol deliveries, and requiring more zero- and low-alcohol options at licensed premises.
McKee said the reforms were about “removing unnecessary red tape” while retaining protections against harm. “Most New Zealanders who choose to drink alcohol do so responsibly,” she said, arguing the current framework unfairly penalises businesses and responsible drinkers.
Impact on local alcohol policies
The reforms also adjust how local alcohol policies (LAPs) interact with existing businesses. While councils can still introduce stricter rules on opening hours and outlet density, renewal licences can no longer be declined outright for being inconsistent with a LAP. Instead, conditions can be modified. As The Spinoff’s Gabi Lardies explained last year, LAPs have been years in the making – Auckland’s came into force last December, mandating a 9pm cutoff for bottle stores, while Christchurch’s policy began this week with the same restriction to apply from October. Wellington councillors are considering a LAP of their own after years of debate. The minister said the shift would protect established operators from being “squeezed out” by sudden changes, while still giving councils power to set rules that reflect community expectations.
Pressure from hospitality sector
The changes come after years of pressure from bars, restaurants and bottle store operators frustrated by what they say is overreach in the objections process. A 2023 law expanded the right to object to “any person,” which business groups argue led to frivolous and costly challenges. Newsroom’s Alice Peacock reported on Auckland venues delayed for months – one bar owner in Mangere Bridge lost more than $150,000 in sales during an eight-month battle over objections he described as “ridiculous.”
While hospitality leaders have welcomed McKee’s reforms, others say the new rules don’t solve deeper problems. In Wellington, where licensing fees are among the highest in the country, operators argue that the district licensing committee has applied the law inconsistently. Courtenay Place bar owners told The Post’s Harriet Laughton (paywalled) this month that the council and police had taken an increasingly punitive approach, leading to costly suspensions and conditions they believe unfairly target “high risk” premises.
U-turn on tougher restrictions
Yesterday’s announcement follows a Cabinet paper leaked earlier this month by RNZ’s Guyon Espiner, showing McKee initially considered tightening access to alcohol. Draft proposals included cutting off off-licence sales at 9pm nationwide – a move officials estimated could prevent 2400 violent crimes each year – but these were abandoned in favour of business-friendly reforms. That decision dismayed Andrew Galloway, executive director of Alcohol Healthwatch, who accused the government of missing a chance to meaningfully reduce alcohol harm.
Espiner also revealed last week, after a prolonged OIA fight, the extent of industry lobbying on alcohol policy. Documents showed liquor companies were consulted on a draft fetal alcohol spectrum disorder strategy while public health groups were kept in the dark, and industry bodies urged officials not to back WHO-endorsed measures such as higher taxes or tighter supply controls. The revelations have sharpened concerns that the government’s reforms are being shaped more by industry influence than by public health priorities.
