LCQ Sale and Supply of Alcohol Act 2012 3 — Questions and Answers
Question 1: Under the Sale and Supply of Alcohol Act 2012, what was the key reform that changed how alcohol harm is addressed compared to the previous legislation (Sale of Liquor Act 1989)?
- The new Act introduced a minimum drinking age of 21
- The new Act introduced a harm minimisation object clause and gave communities more input into local licensing decisions (Correct answer)
- The new Act banned all alcohol advertising on television
- The new Act removed the right to sell alcohol on Sundays
Correct answer: The new Act introduced a harm minimisation object clause and gave communities more input into local licensing decisions
The 2012 Act's major reform was the explicit harm minimisation object clause and the introduction of Local Alcohol Policies (LAPs), giving communities more say in how alcohol is sold in their area.
The Sale of Liquor Act 1989 was primarily a framework for managing the sale of alcohol. The 2012 Act went further by embedding harm minimisation as the central purpose (s4 object clause) and by creating Local Alcohol Policies that allow communities to tailor licensing rules to local needs. The 2012 Act also tightened controls on promotions, strengthened enforcement tools, and made it easier to oppose licence renewals on public interest grounds.
Question 2: Under the Sale and Supply of Alcohol Act 2012, what is 'club membership supply' and when is it lawful?
- Sale of alcohol to club members at discounted prices, which is always lawful
- Supply of alcohol to members and their guests by a club licence holder, which is lawful only within the terms of the club licence (Correct answer)
- A private party arrangement that falls outside the Act entirely
- Supply of alcohol at a club that requires a special licence
Correct answer: Supply of alcohol to members and their guests by a club licence holder, which is lawful only within the terms of the club licence
A club licence authorises the supply of alcohol to club members and their bona fide guests. This supply is lawful only when it occurs within the licensed club premises and within the terms of the club licence.
Club licences are granted to incorporated societies and similar organisations. They authorise the supply of alcohol to members and their guests — not to the general public. The club must operate genuinely as a member-based organisation; it cannot use a club licence structure to operate effectively as a public bar. If a club's operations stray beyond the terms of the club licence, they may be in breach of the Act.
Question 3: Under NZ law, what is the effect of a 'suspension' of a manager's certificate?
- The manager is fined but can continue managing while they pay the fine
- The manager is temporarily prohibited from acting as a duty manager for the period of the suspension (Correct answer)
- The manager's certificate is permanently cancelled
- The manager must retake the LCQ exam before returning to work
Correct answer: The manager is temporarily prohibited from acting as a duty manager for the period of the suspension
A suspension of a manager's certificate means the holder is temporarily prohibited from acting as a duty manager for the duration of the suspension. They cannot resume until the suspension period ends.
ARLA or the DLC can suspend a manager's certificate for a specified period as a disciplinary measure. During the suspension, the certificate holder cannot be appointed as a duty manager on any licensed premises. Suspension is less severe than cancellation (which permanently ends the certificate) but more than a formal warning. Common grounds for suspension include allowing intoxication on premises, serving minors, or criminal convictions.
Question 4: In NZ, what is 'secondary supply of alcohol to a minor' under the Sale and Supply of Alcohol Act 2012?
- Selling alcohol to an adult who then gives it to a person under 18
- Giving or supplying alcohol (not for purchase) to a person under 18 in a private place (Correct answer)
- Ordering a second drink for a minor on licensed premises
- Supplying alcohol to a 17-year-old employee working on licensed premises
Correct answer: Giving or supplying alcohol (not for purchase) to a person under 18 in a private place
Secondary supply is the supplying (not selling) of alcohol to a person under 18 in a private place. It is an offence except where a parent or guardian supplies alcohol to their own child in a responsible manner.
Section 247 of the Act creates the offence of secondary supply — this covers giving or sharing alcohol with a person under 18 in a private location such as a home or party. There is a specific exemption for parents and legal guardians who supply alcohol to their own child or ward in a responsible manner. The provision was introduced to address underage drinking at parties and in private homes, which the previous Act had not specifically addressed.
Question 5: Under the Sale and Supply of Alcohol Act 2012, who must give written approval before a new on-licence or off-licence can be granted in NZ?
- The Mayor of the district
- The territorial authority must confirm the proposed use is consistent with the zoning rules (Correct answer)
- No approval is needed beyond the DLC decision
- The Ministry of Health must sign off on all new licences
Correct answer: The territorial authority must confirm the proposed use is consistent with the zoning rules
The DLC must confirm that the proposed activity is consistent with the District Plan (zoning) before granting a licence. The territorial authority's resource consent or zoning compliance is a prerequisite.
Under the Act, an application for a new on-licence or off-licence will not succeed if the proposed premises are in a location that is not zoned for that type of activity under the Resource Management Act. The DLC must be satisfied that the use is consistent with the district plan. This is why some licence applications require resource consent from the same council before or alongside the liquor licence application.
Question 6: Under the Sale and Supply of Alcohol Act 2012, what happens if a licence renewal application is not lodged within the required timeframe in NZ?
- The licence continues automatically on a rolling basis
- The existing licence lapses and the business must apply for a new licence (Correct answer)
- The DLC grants a 30-day extension automatically
- ARLA assumes management of the licence pending renewal
Correct answer: The existing licence lapses and the business must apply for a new licence
If a renewal application is not lodged at least 20 working days before the licence expiry date, the licence expires and the business must apply for a new licence rather than a renewal.
Licence renewal applications must be made to the DLC not later than 20 working days before the current licence expires. If the application is lodged in time, the existing licence continues in force until the renewal is determined. If the application is not lodged in time, the licence expires on its due date and the business must cease selling alcohol. Re-opening requires a fresh application, which goes through the full new-licence process including public notification and the possibility of objections.
LCQ Sale and Supply of Alcohol Act 2012 3
Under the Sale and Supply of Alcohol Act 2012, what was the key reform that changed how alcohol harm is addressed compared to the previous legislation (Sale of Liquor Act 1989)?