As a business selling or supplying alcohol in New Zealand, you must be aware of the current laws impacting your business. On 30 June 2022, the Sale and Supply of Alcohol (Harm Minimisation) Amendment Bill (the Bill) was introduced to the New Zealand Parliament. The Bill aims to amend the Sale and Supply of Alcohol Act 2012 (the Act) to abolish appeals concerning local alcohol policies and implement various recommendations made in the 2014 Ministerial Forum on Alcohol Advertising and Sponsorship. If passed, the changes will significantly impact the liquor industry in New Zealand. This article will explore how these laws will affect you.
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Current Legal Landscape
Currently, the law provides that any territorial authority, meaning a city or a district council, may have a policy relating to the sale, supply, or consumption of alcohol, a local alcohol policy. A policy may cover a wide range of matters, including trading hours and the location of premises. A council must go through various procedures to make and adopt a policy.
One such requirement is that the council must publish a draft and provisional policy and utilise the special consultative procedure outlined in section 83 of the Local Government Act 2002. The procedure requires councils to, for instance, provide an opportunity for persons to present their views.
Changes to the Law
The Supply of Alcohol Act currently allows those participating in the procedure to submit an appeal to the Alcohol Regulatory and Licensing Authority (ARLA) concerning any aspect of a provisional policy.
However, the Amendment Bill seeks to repeal this right from the Act. Accordingly, this removes the ability to appeal against any policy developed by a council to the ARLA. If the Bill passes, councils will only need to give notice of any policy they intend to implement.
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In addition to the above, the Amendment Bill also seeks to add new laws to the Supply of Alcohol Act that will affect alcohol advertising and sponsorship.
The Bill seeks to introduce a range of offences including:
| Section | Potential Amendment |
| Section 386B | Prevent advertisements concerning alcohol products from being broadcasted during sports games. |
| Section 396C | Exclude alcohol advertisements from sporting venues. |
| Section 396D | Generally seeks to ban the sponsorship of organised sports activities by manufacturers, importers, distributors or retailers of alcohol. |
| Sections 396E to 396G | Aims to prohibit the use of an alcohol trade mark concerning the sponsorship of a team, merchandise and sporting venues. |
Additionally, the Bill stipulates that the penalty for a breach of any of the above provisions will be a fine up to:
- $600,000 in the case of an entity such as a manufacturer;
- $200,000 in the case of a large retailer; or
- $50,000 in any other case.
Key Takeaways
In summary, if the Bill passes, it will greatly impact the New Zealand liquor industry. Furthermore, there will be very little opportunity for individuals with an issue with the policy to voice their concerns and appeal. Moreover, it will eliminate any opportunities to advertise in connection with sports. Accordingly, if you are part of the New Zealand liquor industry, you should be aware of the Bill and its progress and of the potential new offences that will be introduced should the Bill pass.
If you need help with your obligations as a liquor business in New Zealand, our experienced regulatory and compliance lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.
Frequently Asked Questions
The Bill stipulates that the penalty for a breach of any of the above provisions will be a fine not exceeding $600,000 in the case of an entity such as a manufacturer, $200,000 in the case of a large retailer, or $50,000 in any other case.
Under the Supply of Alcohol Act 2012, the ARLA is the national body that ensures a fair application of the law.
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