LCQ Enforcement Powers and Infringement Notices 2 — Questions and Answers
Question 1: Under the Sale and Supply of Alcohol Act 2012, what is a 'suspension order' and who can issue one in NZ?
- An immediate temporary closure issued by Police on scene
- An order made by the DLC or ARLA suspending a licence or manager's certificate for a defined period, following an application and hearing process (Correct answer)
- An informal warning issued by a Licensing Inspector
- An order by ARLA that automatically cancels a licence
Correct answer: An order made by the DLC or ARLA suspending a licence or manager's certificate for a defined period, following an application and hearing process
A suspension order is a formal order from the DLC or ARLA that suspends a licence or manager's certificate for a specified period. It requires an application, evidence, and in most cases a hearing before it is made.
Suspension of a licence or manager's certificate is a formal legal action taken by the DLC or ARLA. It is not an immediate enforcement tool — Police can close premises temporarily (up to 24 hours) using closure orders, but suspension of the licence requires an application, notice to the licensee, and generally a hearing where the licensee can respond. Suspension is more serious than an infringement notice but less severe than permanent cancellation.
Question 2: In NZ, what is the maximum fine for an individual who sells or supplies alcohol without any licence?
- $2,000
- $5,000
- $10,000 (Correct answer)
- $20,000
Correct answer: $10,000
Under the Act, an individual who sells or supplies alcohol without a licence faces a maximum fine of $10,000 on conviction.
Section 6 of the Act creates the offence of selling or supplying alcohol without a licence. For an individual (natural person), the maximum fine on conviction is $10,000. For a body corporate, the maximum is $100,000. These significant penalties reflect the seriousness of bypassing the licensing regime entirely, which is the foundation of the Act's harm minimisation framework.
Question 3: Under NZ law, what is the Police power to seize alcohol under the Sale and Supply of Alcohol Act 2012?
- Police can seize any alcohol in a public place without legal authority
- Police can seize alcohol that is being sold or supplied without a licence or that is evidence of an offence under the Act (Correct answer)
- Police can seize alcohol only from minors
- Police can seize alcohol only if authorised by a court order
Correct answer: Police can seize alcohol that is being sold or supplied without a licence or that is evidence of an offence under the Act
Police have the power to seize alcohol that is being sold or supplied without a licence or that constitutes evidence of an offence under the Act.
The Act gives Police power to seize alcohol in certain circumstances: primarily where alcohol is being sold or supplied without a licence, or where it constitutes evidence of an offence. Police also have powers relating to alcohol in public places under local alcohol bans. These seizure powers do not authorise blanket seizure of all alcohol seen in public — the circumstances must meet the legal threshold.
Question 4: Under NZ law, what is the role of the Medical Officer of Health in alcohol enforcement?
- The Medical Officer of Health issues infringement notices for health breaches on licensed premises
- The Medical Officer of Health reports to the DLC on the public health implications of licence applications and renewals, and can oppose licences on public health grounds (Correct answer)
- The Medical Officer of Health has no role in alcohol licensing enforcement
- The Medical Officer of Health directly closes licensed premises posing health risks
Correct answer: The Medical Officer of Health reports to the DLC on the public health implications of licence applications and renewals, and can oppose licences on public health grounds
The Medical Officer of Health (MOH) participates in the licensing process by filing reports on licence applications and renewals that address public health implications, and can oppose licences on public health grounds.
Every District Health Board has a Medical Officer of Health who is notified of new licence applications and renewals. The MOH can report to the DLC on the public health impacts of the proposed licensed activity — for example, whether a new off-licence in a community with high rates of alcohol harm would worsen the problem. The MOH can also formally oppose a licence or renewal. While they cannot directly close premises, their opposition carries significant weight with the DLC.
Question 5: In NZ, what is a 'formal warning' in the alcohol licensing enforcement context?
- An infringement notice that has been paid
- A written caution issued by the DLC or a Licensing Inspector as a first step in the enforcement process before further action is taken (Correct answer)
- A verbal warning given by Police on a visit to licensed premises
- A letter from ARLA informing the licensee they are under investigation
Correct answer: A written caution issued by the DLC or a Licensing Inspector as a first step in the enforcement process before further action is taken
A formal warning is a written notification from the DLC or Licensing Inspector that a breach has been identified and that further breaches may lead to more serious action. It is a first step in the enforcement escalation process.
Formal warnings are used where a breach has been identified but the circumstances do not yet warrant prosecution or an application to cancel the licence. The warning creates a formal record of the breach and puts the licensee on notice that further breaches will be treated more seriously. A history of formal warnings is relevant when the DLC considers a licence renewal or any subsequent application for enforcement action.
Question 6: Under NZ law, what is the 'licensee's liability' principle in the enforcement context?
- The licensee is automatically criminally liable for any offence committed by any person on the premises
- The licensee can be held responsible for offences committed by their employees or agents in the course of the licensed business, in addition to any personal liability of the employee (Correct answer)
- The licensee has no liability if a staff member commits an offence without their knowledge
- Liability rests entirely with the duty manager on duty — the licensee has no personal exposure
Correct answer: The licensee can be held responsible for offences committed by their employees or agents in the course of the licensed business, in addition to any personal liability of the employee
Under the Act, both the individual who commits an offence (such as a staff member who serves a minor) and the licensee can be held liable, because the licensee is responsible for how their business operates.
The Act's enforcement scheme recognises that individual staff members may commit offences but that the licensee (as the holder of the licence) is responsible for how the business operates. This dual liability means that a sale to a minor by a bar staff member can expose both the staff member personally and the licensee entity to prosecution. The licensee's defence typically requires showing they took all reasonable steps to prevent the offence (proper training, supervision, and systems).
LCQ Enforcement Powers and Infringement Notices 2
Under the Sale and Supply of Alcohol Act 2012, what is a 'suspension order' and who can issue one in NZ?