The Bill amends the Liquor Control Reform Act 1998 (the Act) to –

[Clauses]

[2]. The provisions in the Bill come into operation on the day after Royal Assent.

[6]. Inserts a new section 18A into the Act closing a loophole that exists on the transfer of a general liquor licence.

[7]. Amends section 22 of the Act dealing with considerations to be taken into account relating to licensing prohibitions in respect to petrol stations.

[8]. Amends section 23 of the Act by closing loopholes in respect of the 8% limit on holders of packaged liquor licences. The 8% limit is to be determined at the time the application is determined not when the application is made.

The Committee notes the following comments from the Second Reading Speech –

An opportunity exists under the Act for an applicant to circumvent the 8 per cent rule on packaged liquor licence holdings by obtaining a general licence (mostly held by hotels), as it also permits the sale of packaged liquor. While this loophole has not been widely exploited yet, the retention of the 8 per cent rule for the next three years may increase this likelihood.

Clause 8 of the Bill amends the Act to ensure that an application for a general licence where the predominant activity is the sale of packaged liquor is not used as a means of circumventing the 8 per cent rule.

In the case where an applicant's holdings are above the 8 per cent limit, the amendments require that the Director of Liquor Licensing not approve an application for the grant or transfer of a general licence if the predominant activity of the licensed premises would be the sale of packaged liquor.

The amendments will not prevent applicants whose holdings are above the 8 per cent limit from obtaining a general licence where the predominant activity is not the sale of packaged liquor. In such instances, clause 6 provides that it is a condition of the general licence that the predominant activity is not the sale of packaged liquor at any time that their holdings are above 8 per cent.

In the case where the applicant's holdings are below the 8 per cent limit, the director may approve an application for the grant or transfer of a general licence. However, if the applicant holds general licences where the predominant activity is the sale of packaged liquor, those licences are to be taken to be packaged liquor licences for the purposes of determining whether the application would breach the 8 per cent limit.

Section 23 of the Act currently provides that a packaged liquor licence must not be granted if, at the time of application, an applicant holds more than 8 per cent of the total number of such licences. There has been some legal uncertainty regarding the interpretation of the phrase 'at the time of application'. In 1999 a major liquor retailer sought to undermine the 8 per cent rule by simultaneously lodging a large number of licence applications on the basis that its holdings at the time of application were under 8 per cent.

Clause 8(2) of the Bill will remove any legal uncertainty by amending section 23 to make it clear that the 8 per cent rule applies at the time of the determination of the application by the Director of Liquor Licensing. As the director considers and determines each application individually, this amendment will ensure that the director could only grant a licence up to the point where the 8 per cent limit has been reached.

[9]. Inserts clause 19 into Schedule 3 to the Act providing transitional provisions for the amendments made by [4 to 8]. The substance of the transitional arrangements is that they apply to licence conditions or a transfer of a licence in applications made on or after 23 January 2001. Licences granted or transferred on or after 23 January 2001 that would not have been granted or transferred had the provisions of this Bill been in effect will cease to have effect on Royal Assent.

The Committee notes the following comments from the Second Reading Speech –

The amendments outlined above apply prospectively to the grant or transfer of a licence on an application made on or after 23 January 2001. This was the date on which the public would have received advice from the government detailing its intentions to close these loopholes immediately. The public was informed through a media release and a letter to all liquor stores, licensed supermarkets and hotels. This transitional provision is necessary to prevent a potential rush of applications prior to the passage of the amending legislation. The amendments will not apply to applications lodged prior to this date.