1
ITEM B3
ITEM FOR RECOMMENDATION
ESTABLISHMENT OF DISTRICT LICENSING COMMITTEE
PREPARED BY:
TEAM:
APPROVED BY:
WARD/COMMUNITY:
DATE:
FILE REFERENCE:
Louise Tester (Senior Policy Advisor)
Corporate Strategy and Policy
Simon Pickford (Manager Executive Services)
District Wide
Wednesday 12th June 2013
DM 1439054
PURPOSE
The purpose of this report is to set out the options that are available to the Council regarding
the development of the mandatory District Licensing Committee (DLC).
EXECUTIVE SUMMARY
The Council is required under section 186 of the Sale and Supply of Alcohol Act 2012 to
establish a District Licensing Committee (DLC). The Committee must comprise of three
members, a Chair (who may be either a Commissioner or member of the local authority), and
two list members, one of which may be a deputy chair (who must be a member of the local
authority). The report assesses the various structural options that are available to the Council.
RECOMMENDATION
That having considered all matters raised in the report, in accordance with section 186,
of the Sale and Supply of Alcohol Act 2012:
a)
One District Licensing Committee for the district is established.
b)
In accordance with section 192 of the Sale and Supply of Alcohol Act 2012,
expressions of interest for members of the District Licensing Committee be
sought, in partnership with neighbouring territorial local authorities.
c)
The number of people sought for the DLC member list be set to a maximum of
eight people.
d)
In accordance with section 193 of the Sale and Supply of Alcohol Act 2012,
expressions of interest for a Commissioner be sought in partnership with
neighbouring territorial local authorities.
e)
The Chief Executive be delegated authority to appoint a Commissioner.
Policy Committee
Tuesday 9 July 2013
2
ITEM B3
ITEM FOR RECOMMENDATION
SIGNIFICANCE ASSESSMENT
In terms of the Council’s Significance Policy this matter is of:
Low significance
Medium significance
High significance
This matter has been assessed as medium significance because the establishment of the
District Licensing Committee (DLC) along with its associated powers under the Sale and
Supply of Alcohol Act 2012 represents a change to the way by which liquor applications are
determined in the district.
The significance of the matter to the Council is the determination of the role that the
Councillors shall take on the Committee.
BACKGROUND
Overview of the Sale and Supply of Alcohol Act 2012
The Sale and Supply of Alcohol Act 2012 (SSAA2012) has introduced many changes that are
beginning to impact on the Council. A principal aim of the Act was to improve local input
into decision making. The Act introduces the District Licensing Committees (DLC's) to
replace the District Licensing Authority (DLA), and introduces the Alcohol Regulatory and
the Licensing Authority (ARLA) to replace the Liquor Licensing Authority (LLA). The act
amended the licensing regime from 18 June 2013, with the introduction of new criteria (S105
and S106) for the issue of licences. The new criterion includes the consideration of the extent
that the amenity and good order of the locality will be affected, the training of staff, design of
the premises and the actual provision of services to be undertaken by the premises. The act
also makes provision for the Council to develop a Local Alcohol Plan (LAP). Councillors
received a full report on the extent and impact of the new legislation in its totality in March
2013.1 As part of this report the Council resolved to develop an LAP. The Council intends to
work alongside the Police, Health and neighbouring territorial local authorities on the LAP
development.
The Sale of Liquor Act 1989 will be repealed in its entirety on 18h December 2013.
The remainder of this report considers only the requirements of the District Licensing
Committee which the Council is required to establish by 18 December 2013.
Overview of the District Licensing Committee
The DLC will come into force on 18th December 2013. Up until this date the DLA remains in
force, considering all uncontested liquor applications. A change for the DLA comes into
effect on 18th June. From this date the DLA will consider uncontested applications in
accordance with the new licensing criteria set out in the SSAA2012 (S.105 and S106). The
1
(DM1386653).
Policy Committee
Tuesday 9 July 2013
3
ITEM FOR RECOMMENDATION
ITEM B3
District Licensing Committee (its replacement) must become operational from 18 December
2013.
The Act requires each local authority to appoint one or more licensing committees to deal
with licensing matters for its district (S.186).
DISCUSSION
The SSAA 2012 sets out clear parameters about the functions and composition of the DLC.
The most significant change that will affect workloads is that the DLC is responsible for
considering contested and uncontested licensing applications.
Functions of the DLC
The functions of the Committee, as set out in S187, are as follows:
a)
b)
c)
d)
e)
f)
g)
h)
to consider and determine applications for licences and manager's certificates; and
to consider and determine applications for renewal of licences and manager's
certificates; and
to consider and determine applications for temporary authority to carry on the sale
and supply of alcohol in accordance with section 136; and
to consider and determine applications for the variation, suspension, or cancellation of
special licences; and
to consider and determine applications for the variation of licences (other than special
licences) unless the application is brought under section 280; and
with the leave of the chairperson for the licensing authority, to refer applications to
the licensing authority; and
to conduct inquiries and to make reports as may be required of it by the licensing
authority under section 175; and
any other functions conferred on licensing committees by or under this Act or any
other enactment.
Composition of the DLC
The composition of the DLC is set out in S189 as follows:
1)
2)
3)
4)
Each licensing committee consists of three members appointed by the territorial
authority for that territorial authority's district.
A territorial authority must appoint 1 member as the chairperson and that person must
be a member of that territorial authority or a commissioner* appointed to the licensing
committee.
A territorial authority may appoint a member of that territorial authority to be deputy
chairperson, and act in place of the chairperson if the chairperson is unable to act
because of illness or absence from New Zealand, or for other sufficient reason.
While acting in place of the chairperson, the deputy chairperson is a member of the
committee and has all the powers and duties of the chairperson.
Policy Committee
Tuesday 9 July 2013
4
ITEM B3
5)
6)
7)
ITEM FOR RECOMMENDATION
No act done by the deputy chairperson serving as acting chairperson in the
chairperson's absence, and no acts done by the committee while the deputy
chairperson is so serving, can in any proceedings be questioned on the ground that the
occasion for his or her so serving had not arisen or had ceased.
The other two members of each licensing committee must be appointed from the
territorial authority's list maintained under section 192.
For the purposes of subsection (2), a member of a territorial authority means an
elected member of a territorial authority.
*If the Council resolves to appoint a Commissioner as Chair, the Council may delegate
authority to the Chief Executive to make the appointment.
DLC Member List
S.192 sets out the requirements for the establishment and maintenance of the DLC member
list, as follows:
1)
2)
3)
4)
5)
A territorial authority must either—
a.
establish, maintain, and publish its own list of persons approved to be
members of the territorial authority's licensing committee or committees; or
b.
together with 1 or more other territorial authorities, establish, maintain, and
publish a combined list of persons jointly approved by those authorities to be
members of the territorial authorities' licensing committees.
A territorial authority must not approve a person to be included on the list unless that
person has experience relevant to alcohol licensing matters.
A person may be approved for inclusion on the list for a period of up to five years and
may be approved for any one or more further periods of up to five years.
The name of a person must be removed from the list—
a.
when five years have elapsed since the territorial authority approved the
person's name on the list unless the approval is renewed under subsection (3);
or
b.
if the person resigns or is removed
A person must not be included on the list if—
a.
the territorial authority believes that person has, directly or by virtue of his or
her relationship with another person, such an involvement or appearance of
involvement with the alcohol industry that he or she could not perform his or
her duties without actual bias or the appearance of bias; or
b.
the person is a constable, a Medical Officer of Health, an inspector, or an
employee of the territorial authority.
There are a number of options available to the Council in respect of its composition of the
DLC. It is the responsibility of the Council to determine how it wishes to construct the
Committee.
Local Government New Zealand in partnership with the Health Promotion Agency and Allen
and Clarke Policy and Regulatory Specialists have released Competency Guidance for
District Licensing (DLC) Committee Members (June 2013) (see Appendix A). The guidance
Policy Committee
Tuesday 9 July 2013
5
ITEM B3
ITEM FOR RECOMMENDATION
provides Council's with a framework for their selection and appointment of DLC members.
The guidance should be considered alongside the content of this report, when considering the
best available option for the establishment of the Committee.
OPTIONS
Single DLC versus Multiple DLC's
The Act (S186) permits the Council to establish one or more DLC's for its district. The
options available for the Council are:
1) the establishment of a district wide DLC
2) the establishment of multiple DLC's, around principal townships, or community board
areas.
There are greater cost and resource implications if multiple DLC's were established. Whilst
the Council could have the same DLC Chair and Committee Members, there would be
additional costs and administrative burdens administering more than one committee. With
several committees there would be an increased likelihood of more than one chair and the
need for an increased number of committee members, this carries additional costs and
pressures administering the committee and training the committee members. There are also a
smaller number of alcohol licensing applications outside of the New Plymouth central area.
There is a greater risk of inconsistent approaches with several committees.
The recommended approach is option one, a single DLC for the district.
DLC Composition Options
There are several options available to the Council in respect of its DLC structure. These are
set out below. If the Council were to opt from multiple DLC's the structure would need to be
replicated accordingly for each committee.
Option DLC Chair
1
2
3
4
DLC
Chair
NPDC councillor
as chair
NPDC councillor
as chair
NPDC councillor
as chair
Independent
Commissioner
chair
as
Deputy DLC
Members
List Cooperation
opportunities
with
other Taranaki TLA's
NPDC councillor NPDC councillors No opportunity.
or no deputy chair
NPDC councillor District
No opportunity.
or no deputy chair community list
NPDC councillor Regional
Increased opportunity
or no deputy chair community list
to draw on expertise
across the province.
NPDC councillor District list
Increased opportunity
or no deputy chair
to
share
a
commissioner with
the other TLA's who
pursue this option.
Policy Committee
Tuesday 9 July 2013
6
ITEM B3
Option DLC Chair
5
Independent
Commissioner
chair
ITEM FOR RECOMMENDATION
DLC
Chair
Deputy DLC
Members
List Cooperation
opportunities
with
other Taranaki TLA's
NPDC councillor Regional list
Greatest opportunity.
as or no deputy chair
Potentially a single
commissioner
and
single
pool
of
members.
The continuum of options demonstrates the extent to which councillors and or community
appointees can be involved in the DLC. A principal aim of the Act is to offer the community
a greater opportunity to be involved in the matters relating to the sale and supply of liquor
within the district. The two principal ways this can be achieved are through the development
of the Local Alcohol Policy and the composition of the DLC.
The options also provide an indication of the extent to which the Council can work with its
neighbouring TLA's. The Council is working hard to collaborate where possible with South
Taranaki District Council and Stratford District Council, and has begun conversations about
the opportunities relating to liquor.
The table overleaf assesses each option in relation to the factors listed in section 77 of the
Local Government Act 2002 (LGA20012).
Policy Committee
Tuesday 9 July 2013
7
ITEM B3
ITEM FOR RECOMMENDATION
Option
Benefits and costs in
Integrated efficient promotion
terms of present and
of community outcomes.
future well-being
1(NPDC
Councillors are elected to Councillors are conversant with
Chair,
represent the community as the
community
outcomes.
councillors as a whole
However
the
community
list members)
outcomes do not form a basis for
DLC decision making
2
(NPDC Councillors are elected to
Chair, district represent the community as
community
a whole.
list members)
Having
additional
community list members
would draw on the skills
and expertise that exists
outside of the council, and
embrace the principles of
the Act to involve the
community in decisions
relating to the sale and
supply of alcohol in the
district.
Councillors are conversant with
the
community
outcomes.
However
the
community
outcomes do not form a basis for
DLC decision making. Decisions
must be made in accordance
with the assessment criteria
(S105) in the Act and any LAP
Impact on the Council to meets
its current and future
responsibilities.
Councillors
would have
an
increased workload which could
affect the other parts and duties
associated with their councillor
role.
The Council is required to operate a
DLC, and will be responsible for its
operation
and
management,
regardless of the structure chosen
The councillors would have an
increased workload which could
affect the other parts and duties
associated with their councillor
role.
There would be no impact for the
community members who were
appointed.
The Council is required to operate a
DLC, and will be responsible for its
operation
and
management,
regardless of the structure chosen
Cost effectiveness
The
costs
for
the
operation of the DLC are
set by the government.
Each option will cost the
same. The objective is for
the DLC to be cost
neutral, over time.
The
costs
for
the
operation of the DLC are
set by the government.
Each option will cost the
same. The objective is for
the DLC to be cost
neutral, over time.
Policy Committee
Tuesday 9 July 2013
8
ITEM B3
3
(NPDC Councillors are elected to
chair, regional represent the community as
community
a whole.
list)
Having
additional
community list members
would draw on the skills
and expertise that exists
outside of the Council. The
benefits of a regional list
are a wider pool of skills to
draw upon. The risk of a
regional list may exist if
there is a perception that
members from another
district are ill equipped to
make
decisions
about
licensing in New Plymouth.
The competency criteria
should mitigate this. A
regional list of members
demonstrates the ability of
the Taranaki TLA's to
cooperate on matters of
mutual interest. It also
offers a greater opportunity
for a consistent message
regarding the sale and
supply of alcohol in the
regional community.
Policy Committee
Tuesday 9 July 2013
ITEM FOR RECOMMENDATION
Councillors are conversant with
the
community
outcomes.
However
the
community
outcomes do not form a basis for
DLC decision making. Decisions
must be made in accordance
with the criteria in the act and
any LAP.
The councillors would have an
increased workload which could
affect the other parts and duties
associated with their councillor
role.
There would be no impact for the
community members who were
appointed.
The Council is required to operate a
DLC, and will be responsible for its
operation
and
management,
regardless of the structure chosen
The
costs
for
the
operation of the DLC are
set by the government.
Each option will cost the
same. The objective is for
the DLC to be cost
neutral, over time.
9
ITEM B3
ITEM FOR RECOMMENDATION
4
(Independent
commissioner,
district
community
list)
The Council would draw on
the skills and expertise of
its community through the
use
of
a
skilled
commissioner,
and
community list members
and the appointment of a
councillor as deputy chair.
It is an inclusive option that
shares decision making
with the community.
5
The council would draw on
(Independent the skills and expertise of
chair, regional its community through the
community
use
of
a
skilled
list)
commissioner,
and
community list members
and the appointment of a
councillor as deputy chair.
It is an inclusive option that
shares decision making
with the community.
Regional well-being will be
promoted
through
collaboration. A regional
list
of
members
demonstrates the ability of
the Taranaki TLA's to
cooperate on matters of
mutual interest. It also
Decisions must be made in There
would
be
workload
accordance with the criteria in considerations
for
a
single
the act and any LAP.
councillor.
The Council is required to operate a
DLC, and will be responsible for its
operation
and
management,
regardless of the structure chosen
The
costs
for
the
operation of the DLC are
set by the government.
Each option will cost the
same. The objective is for
the DLC to be cost
neutral, over time.
Decisions must be made in There
would
be
workload
accordance with the criteria in considerations
for
a
single
the act and any LAP.
councillor.
The Council is required to operate a
There is a greater opportunity for DLC, and will be responsible for its
consistent high quality decisions operation
and
management,
across the region.
regardless of the structure chosen
The
costs
for
the
operation of the DLC are
set by the government.
Each option will cost the
same. The objective is for
the DLC to be cost
neutral, over time.
Cost savings would be
realised
through
a
streamlined selection and
recruitment process with
the other TLA's
Policy Committee
Tuesday 9 July 2013
10
ITEM B3
ITEM FOR RECOMMENDATION
offers a greater opportunity
for a consistent message
regarding the sale and
supply of alcohol in the
regional community.
Whilst options one to five set out the main variables, it also worth noting the following:
A Commissioner may also be a councillor. New Plymouth District Council could appoint as a Commissioner a councillor from another authority.
Equally the Council could appoint a councillor as its DLC chair, and the councillor could apply to be a commissioner for a neighbouring TLA. If
the Council were to opt for the Commissioner route, and seek expressions of interest a member of the Council would be entitled to apply for the
position.
The DLC member list may comprise of both councillors and community members. Whilst the Council would be entitled to appoint councillors to
the list, subject to their meeting the competency criteria, and seek expressions of interest from the community, in the interests of transparency it
is preferable to invite all interested persons, be they councillors or community members to express their interest to join the DLC list.
Policy Committee
Tuesday 9 July 2013
11
ITEM B3
ITEM FOR RECOMMENDATION
Based on assessment of each option, the recommendation is option 5:
(1)
The appointment of a Commissioner as Chair.
(2)
The appointment of a councillor as Deputy Chair.
(3)
The administration of a regional list of DLC members.
The opportunities for collaboration have been discussed with Stratford and South Taranaki
District Councils. Stratford District Council has indicated a strong preference to work
together and share resources.
Numbers of DLC Members
The Council must also determine the numbers of councillors who shall be on the list.
Currently the Council has six members on the list of potential Hearing Commissioners (it was
eight at the beginning of the triennium). When determining the numbers it is important to
have enough people to sufficiently rotate, but not too many as to prevent people from regular
participation on the committee. It is also important to consider that the list of members will
potentially be shared across TLA boundaries. Whilst we do not know for certain at this stage,
Council officers are predicting that the DLC will meet monthly, however this is likely to be
more frequent in the early days.
Based on the Councils current practice regarding its pool of Hearings Commissioners, it is
proposed that the Council adopt the same approach, and the list of DLC members is set at
eight.
IMPLICATIONS ASSESSMENT
Local Government Purpose
The matter comes within the scope of the Council’s lawful powers, including satisfying the
purpose statement in section 10 of the Local Government Act 2002. The matter will enable
the Council to meet the current and future needs of communities for good quality (i.e.
efficient, effective and appropriate to present and anticipated future circumstances):
Local Infrastructure
Local public services
Performance of regulatory function
The establishment of the DLC is an integral element to the Council's implementation and
enforcement of the Sale and Supply of Liquor Act 2012. It is a mandatory requirement placed
on all territorial local authorities.
As discussed under ‘Options’ above, the matter will be delivered in the way that is most costeffective for households and businesses.
Policy Committee
Tuesday 9 July 2013
12
ITEM B3
ITEM FOR RECOMMENDATION
Community Outcomes
This matter contributes to the following community outcomes:
Connected
Skilled
Prosperous
Together
Vibrant
Sustainable
Secure and Healthy
Community outcomes are the outcomes that the Council aims to achieve in meeting the
current and future needs of communities for good-quality local infrastructure, local public
services and performance of regulatory functions.
The consideration of community outcomes under section 77(1)(b)(ii) of the Local
Government Act 2002 is addressed under 'Options' in this report.
LTP / Annual Plan
Is this matter currently budgeted for?
Yes
No
The DLC competency paper sets out the fees payable to the members of the DLC. These fees
shall be payable from 18 December 2013.
Cabinet has released a consultation paper on the risk based fee regime in early June (the
consultation paper and the Council's proposed submission is the subject of a separate report).
The intention is for the new fee structure to be in place for 18th December. The fees can
either be nationally prescribed or locally determined via a bylaw. The intention is for the new
arrangements to be cost neutral (currently we meet 50% of costs through the rates and 50%
from fees). In theory this does mean the rates contribution drops to zero, over time. However
it is not wise to make this assumption before we see the fees and are able to conduct some
robust calculations on the finances (revenue from fees versus cost of running the DLC and
new associated new processes).
Risks do exist, arising from the unknown position regarding fees and costs, which could lead
to an increase in costs in the interim period, thus placing a cost burden on the rate payer.

Whilst the DLC Chair / Commissioner has the authority to determine, alone all
uncontested applications. In the first period, it is possible that the three members will
meet. This will allow the deputy chair (if appointed) and the other list member to
become fully conversant with the process. The engagement of all committee
members, during the early days carries a cost.

The current costs relate to the sitting fees. There is preparatory and other ancillary
works that will take place outside of the sitting committee. There will be a cost for
this work. The Cabinet fees framework reads as follows:
"(29) Payment for additional work should be agreed by the fee-setting authority before the
work is undertaken. The key objectives for the additional work must be clearly specified, and
evaluated on completion… However, such additional work should otherwise relate to the
governance role of the board, and should not cover activities that are more properly within
the role of management."
Policy Committee
Tuesday 9 July 2013
13
ITEM B3
ITEM FOR RECOMMENDATION
The Council will need to resolve on the fees payable to DLC members for this additional
work.
The Council needs to be mindful of the costs of training and on-going professional
development costs for the DLC members. A large list of DLC members will carry larger
costs. The sharing of training costs with neighbouring TLA's is an area of opportunity.
It is also reasonable to suggest there will be an initial increase in contested applications,
based on objections received by statutory bodies and community. This will lead to the
committee sitting more regularly than would ordinarily be expected. This carries unforeseen
costs, which may not be met by the new fee regime in the short term.
It is reasonable to speculate an increase in appeals against the decisions of DLC. Applicants
may challenge their "risk grading", and the conditions placed on licences. This carries
unforeseen costs, which may not be met by the new fee regime in the short term.
Whilst this section of the report is based on a set of assumptions we do know that the Alcohol
Regulatory Licensing Authority (ARLA) is increasing their capacity in anticipation of an
increased number of appeals.
When the risk based fee paper is released, Officers will develop some financial projections,
and assess whether a gap exists between costs and fees.
It is important to note that the Council has not made any contingency within the current
Environmental Health budget for additional costs that may be borne in the interim as we
implement the new legislative requirements.
Consistency with Policy and Plans
There is no inconsistency with any Council plan or policy. There is currently no policy in
place to guide the determination of liquor applications.
Legal
The legal obligations are set out in the Sale and Supply of Liquor Act 2013.
Tangata Whenua Maori
There are no specific considerations for tangata whenua in relation to anybody of land or
water.
The composition of the DLC will be of interest to Maori. Maori members of the community
may wish to apply to join the list of DLC members, should the Council resolve to have a list
which is comprised of community members.
Community Views and Preferences
Following the Council's determination about the preferred DLC structure, if appropriate
expressions of interest will be sought from members of the community who are interested in
becoming a member of the DLC as either a list member or commissioner.
Policy Committee
Tuesday 9 July 2013
14
ITEM B3
ITEM FOR RECOMMENDATION
Risk Analysis
The risk is not making the recommendation is the potential for additional costs to be borne by
the Council, through missed collaboration.
There is also a risk that the Council misses the intent of the SSAA, which is to give the
community a greater say in the determination of alcohol licensing matters in the community.
APPENDICES
Attached as a separate document
Competency Guidance for District Licensing Committee Member (LGNZ, 2013)
(DM1439054)
Policy Committee
Tuesday 9 July 2013