LCQ Alcohol Licensing Fees and Renewal 2 — Questions and Answers
Question 1: Under the NZ Sale and Supply of Alcohol Act 2012, what happens to a licence if the licensee (a company) goes into liquidation?
- The licence is automatically transferred to the liquidator
- The licence lapses unless the DLC grants a temporary authority to the new owner or manager (Correct answer)
- The licence continues for 12 months to allow the business to be sold
- The Ministry of Justice assumes control of the licence
Correct answer: The licence lapses unless the DLC grants a temporary authority to the new owner or manager
If the licensee ceases to exist (e.g., through liquidation), the licence lapses. A temporary authority may be granted to allow the business to continue trading while a new licence is obtained.
Alcohol licences are issued to specific legal entities. If that entity ceases to exist through liquidation, dissolution, or other means, the licence lapses. The Act provides for temporary authorities to be granted to allow a new operator to take over while they complete the full application process. A temporary authority keeps the business lawfully trading during the transition.
Question 2: In NZ, what is the role of the DLC when reviewing a licence renewal application that has attracted objections?
- The DLC must automatically refuse the renewal if any objection is received
- The DLC holds a hearing where all parties — the applicant, objectors, and agencies — can present evidence before a decision is made (Correct answer)
- The DLC refers objections to ARLA to decide
- The DLC can only consider objections from the Police
Correct answer: The DLC holds a hearing where all parties — the applicant, objectors, and agencies — can present evidence before a decision is made
When objections to a renewal are received, the DLC must hold a hearing where the licensee and objectors can present their cases and evidence before the DLC makes a determination.
The renewal hearing process allows the DLC to hear from all relevant parties: the licensee, the Police, the Licensing Inspector, the Medical Officer of Health, and any public objectors. The DLC then weighs the evidence and decides whether to renew the licence, renew with additional conditions, or decline the renewal. The mere lodging of an objection does not mean the licence will be refused.
Question 3: Under NZ law, what grounds exist for a member of the public to oppose a licence renewal?
- Any personal dissatisfaction with the premises qualifies as grounds
- The objection must relate to one or more of the matters that the DLC is required to consider, such as the impact on the amenity and good order of the locality (Correct answer)
- Objections are only valid if supported by at least 10 signatures
- Members of the public cannot oppose renewals — only agencies can
Correct answer: The objection must relate to one or more of the matters that the DLC is required to consider, such as the impact on the amenity and good order of the locality
Public objections to renewals must be based on the grounds set out in the Act — primarily the suitability of the licensee, the amenity and good order of the locality, and whether the premises is being conducted in a proper manner.
The Act allows any person to object to a licence renewal provided their objection relates to one of the grounds the DLC can consider: the suitability of the applicant, the amenity and good order of the locality, and whether the premises has been conducted in a proper manner. Frivolous or irrelevant objections may be dismissed without a hearing. This standing requirement prevents the licensing process from being used purely as a vexatious tool.
Question 4: Under NZ law, when is a manager's certificate renewal required, and how long is the renewed certificate valid?
- Every 1 year — certificates are annual
- Every 3 years — matching the 3-year licence renewal cycle (Correct answer)
- Every 5 years
- There is no renewal — certificates are permanent once granted
Correct answer: Every 3 years — matching the 3-year licence renewal cycle
Manager's certificates must be renewed every 3 years, the same cycle as licence renewals.
Under the Act, a manager's certificate is valid for 3 years and must then be renewed. The renewal process allows the DLC to reassess whether the holder remains a fit and proper person, whether they have maintained their knowledge and training, and whether there have been any adverse incidents or convictions since the certificate was last issued.
Question 5: In NZ, what information must be included in a licence renewal application?
- Updated architectural plans of the premises only
- The applicant's details, the premises details, proof of LCQ currency, and a description of any changes to the business since the last licence was granted (Correct answer)
- A full financial statement of the business's alcohol revenue
- A signed statement from all duty managers confirming their LCQ status
Correct answer: The applicant's details, the premises details, proof of LCQ currency, and a description of any changes to the business since the last licence was granted
A renewal application must include updated applicant and premises information, and details of any changes to the business operations, conditions, or layout since the previous licence was issued.
The renewal application form requires the licensee to confirm their identity and suitability, describe the premises, detail any changes to trading hours or conditions being sought, and confirm that the premises remains suitable for the licence type. Supporting documents may include new plans if the premises has been altered. The DLC uses this information alongside agency reports to assess whether to renew on the same terms or with changed conditions.
Question 6: Under NZ law, what is the purpose of the 'provisional local alcohol policy' (PLAP) in the renewal process?
- A PLAP has no effect on licence renewals — only adopted LAPs apply
- A PLAP may be taken into account by the DLC as a relevant consideration when making renewal decisions, even before full adoption (Correct answer)
- A PLAP automatically suspends all licence renewals in the district until it is adopted
- A PLAP applies only to new licence applications, not renewals
Correct answer: A PLAP may be taken into account by the DLC as a relevant consideration when making renewal decisions, even before full adoption
Once notified, a provisional LAP is a relevant matter that the DLC may take into account when making licensing decisions, even before it is finally adopted.
The LAP process involves public notification of a provisional policy before its final adoption. The Act provides that once a provisional LAP is publicly notified, the DLC may treat it as a relevant matter when making licensing decisions. This means an applicant for renewal could find their application affected by a PLAP even before the LAP is formally adopted — for example, if the PLAP proposes restrictions on the hours or location of the type of licence being renewed.
LCQ Alcohol Licensing Fees and Renewal 2
Under the NZ Sale and Supply of Alcohol Act 2012, what happens to a licence if the licensee (a company) goes into liquidation?