Hansard debates

                           LIQUOR CONTROL REFORM BILL
                                 Second reading

  Dr NAPTHINE (Minister for Youth and Community Services) -- I move:
That this bill be now read a second time:
Introduction
With over 9000 licensed premises  and  over  2050  BYOs, the liquor and licensed
hospitality industry  employs  over 100 000  Victorians and is  identified  as a
significant growth area for employment. However, the consumption of alcohol is a
two-edged  sword.  Inappropriate  consumption  and abuse and misuse  of  alcohol
result in significant personal, family and social costs.

The Victorian government and the community have a  concern  about  the  level of
underage   drinking,  violent  and  criminal  behaviour  as  a  consequence   of
drunkenness, drink-driving and any adverse effect on  the amenity of communities
in proximity to licensed premises.
The  challenge for the  government is to  establish  a legislative framework  in
respect of the sale of  liquor that  contributes to minimising the harm that can
occur as a consequence of the abuse  and  misuse  of alcohol, while facilitating
the development of  the industry and meeting  the expectations of the  community
regarding availability and appropriate opportunities for consumption of liquor.
Victoria's liquor  laws and their  administration have recently been  subject to
review, including extensive consultation:

        review  of  Liquor  Control Act 1987 against national competition policy
        principles (1998);
        review  of  administrative  arrangements  within  the  Liquor  Licensing
        Commission (1997); and
        Public Bodies Review Committee report on the Liquor Licensing Commission
        (1995).
The  recently completed review of  the Liquor Control Act  1987 against national
competition  policy principles was  undertaken by a  review  panel consisting of
Haddon  Storey,  QC,  Associate  Professor  Margaret  Hamilton,  and  Mr  Gordon
Broderick. Victoria's liquor laws are being reformed as follows.

Minimisation of harm  resulting from the sale and  supply of liquor is to be the
principal purpose of the act. New structural  arrangements are to be implemented
for the delivery of liquor licensing services.
A  position of  Director of  Liquor Licensing is to be created to  determine all
uncontested  licence  and  licence-related applications,  and,  subject  to  the
recommendation of the liquor licensing panel, contested applications.
A liquor licensing panel is to be established to provide a recommendation to the
director as to whether or not contested applications should be granted.
Parties aggrieved at any decision of the director may appeal the decision to the
Victorian Civil and Administrative Tribunal.

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Disciplinary proceedings against licensees initiated  by the Victoria Police and
the Director of Local Government Operations will be heard by the Victorian Civil
and Administrative Tribunal.
Categories  of  licences are  to  be  rationalised to  provide  for an increased
diversity of licensed premises to be licensed; for example, b  & bs will be able
to  be simply  licensed  under  limited licences.  The  number of categories  of
licences and permits are to be reduced from seventeen (17) to nine (9).
The current 'primary  purpose'  provision which limits eligibility for licensing
to particular  types  of  businesses is to be removed. Premises other than those
otherwise prohibited under the act  will  be  eligible  to  seek  to be licensed
provided an appropriate planning permission is held.

Exceptions are  to apply for  packaged liquor licences and  on-premises licences
where the permitted land use under the planning permission is as a restaurant or
equivalent (including the approximately 2100  existing on-premises  (restaurant)
licences). In such cases, the existing 'primary purpose' is to  be replaced by a
'predominant activity' requirement.
In  respect  of packaged  liquor  licences, the  'predominant  activity'  on the
licensed premises is to be the sale of packaged liquor, thus ensuring that there
is not a dramatic increase in the type of premises selling packaged liquor.
In  respect of  an on-premises  licence where  the  permitted land  use is  as a
restaurant,  the  predominant  activity  on  the  licensed   premises   must  be
preparation and serving of meals for consumption on the premises.

Furthermore, tables and seating must be in place for at least 75 per cent of the
customers on the premises at any one time,  thus  ensuring  restaurants  do  not
become  bars  without planning permission  and Victoria Police  knowledge.  As a
consequence, the requirement that liquor may  be  served in a restaurant only in
association with a meal is to be removed.
While packaged liquor stocks in licensed supermarkets must continue to be stored
and displayed in licensed areas, the  receipt of  payment for the sale of liquor
is  to  be  able  to  occur at  a remote  checkout point  provided the  checkout
attendant is 18 years of age or over and the various requirements of the act are
met.
The  reforms  provide for  the  only variation  to  existing  as-of-right liquor
trading  hours  (ordinary trading hours)  to  be in  respect  of packaged liquor
licences, with their trading close to be extended from 9.00 p.m. to 11.00 p.m.

each evening to allow them to better compete  with  hotels where packaged liquor
sales may already occur up to 11.00 p.m.
All licensees are to continue to be eligible  to apply for extensions of trading
hours consistent with the current provisions. Any person is to be able to object
to  the  grant  of a  licence  or  variation on  the  ground  that  it would  be
detrimental to  the  amenity  of the  area.  It  will not be  a  valid  basis of
objection that there  is insufficient  need or demand to justify the grant of an
application. Current provisions  in respect of the objection rights of  Victoria
Police and local government are to remain.
The prohibition on the licensing of petrol stations or drive-in cinemas  and the
restrictions  on the licensing  of convenience stores, mixed businesses and milk
bars are to remain.

Other types of businesses as prescribed by regulation from time to time are also
to be subject to  the  prohibition  and  restriction  provisions. The 8 per cent
limit on the granting or transferring of packaged liquor  or general licences to
a  person or corporation and related corporations is to be  modified so  that it
will apply only to packaged liquor licences.
Existing offence provisions are to remain. Additionally, a new  offence of being
knowingly involved  in a false application for a proof-of-age card is created as
recommended by Victoria Police. A person under 18 years of age is to  be allowed
in licensed restaurants  and  cafes during ordinary  trading hours but  may  not
purchase or consume liquor otherwise than is currently provided in the act. This
permission will not apply in respect of bars, hotels, nightclubs, et cetera.

The  licence  application  requirements in  respect  of  the  grant,  variation,
transfer,  relocation  and surrender of a liquor licence is to be simplified and
streamlined. The requirements  in respect of the transfer of an existing licence
from one entity to another are to be limited to a Victoria Police check that the
proposed new licensee is a suitable person to hold a liquor licence.
Application  procedures  are to  be  modified to provide  for electronic service
delivery options. Licence and licence-related applications are to continue to be
required to  be  displayed on  the  premises in accord  with  current provisions
(except  in  respect  of transfers).  However,  the  requirement  that  they  be
advertised in the 
press is to be removed. This proposal  will reduce the cost to  applicants by up
to $1000.

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Under  certain circumstances, for  example, applications related  to nightclubs,
the  director  may require an application to be advertised in  a  newspaper  and
nearby residents to be advised directly by a letter drop.
The requirement that licensees must advise  the licensing authority  of premises
alterations  other  than  those  increasing  or  reducing  the  licensed  and/or
authorised  area is  to  be  removed,  lessening  the  administrative burden  on
licensees. Existing  licensees are to maintain  their current trading  rights in
the transition to the  new licence types. Conditions on existing liquor licences
are to remain.
The dry area provisions are to remain.

In determining any future legislative change the government will be bound by the
outcomes of a  poll  conducted  by  a  relevant council or councils to determine
whether affected residents  (being those who live  within the boundaries of  the
dry  area)  wish  to  amend,  retain  or  abolish  the  current  provisions. The
provisions for conducting such polls are detailed in the  bill.  The  changes to
liquor  law  aim  to  provide  distinct  advantages  to society  in  general  --
consumers, licensees and employees.
The liquor  reform  package  is  underpinned  by  current  research  related  to
effective  control of the  sale  of liquor in  a  harm-minimisation context  and
removes regulatory requirements  upon  licensees that are  not directed to  that
purpose. The objects of the act are to be amended to  identify harm minimisation
as  the prime  purpose of  the act.  Licensing decisions  will  be made  in that
context.

The existing offence provisions are to remain in place, including the successful
initiatives  introduced in 1995  to  further limit  the  potential for under-age
access  to and purchase  and/or  drinking of liquor  on licensed premises except
that  young people  are to be able to attend licensed restaurants and  cafes but
not  purchase  or consume liquor  otherwise  than is  currently  provided during
ordinary trading hours.
With the maintenance of the amenity of community life also being included in the
objects of the  act,  residents, Victoria Police  and councils/shires will  have
significant input to licensing decisions. No licence application will be able to
be granted unless an appropriate planning permission is in place.

In  respect of  breaches of the act, Victoria Police will  continue to  have the
option  of  issuing  infringement  notices  or  initiating  proceedings  in  the
Magistrates Court and/or before  the Victorian Civil and Administrative Tribunal
seeking  suspension/cancellation  of a  liquor licence. Councils/shires  and the
director of  liquor licensing will also be able to  initiate proceedings against
licensees through the Victorian Civil and Administrative Tribunal.
While having a prime focus on harm minimisation, the reform package considerably
reduces the administrative regulatory burden upon licensees and should stimulate
new entry and  growth within the  liquor and licensed hospitality  industry. The
liquor  reform package  provides  a  regulatory framework  that  will serve  the
community  and  the  liquor  and licensed  hospitality  industry into  the  next
millennium.
I commend the bill to the house.

Mr Haermeyer -- On a point of order, Mr Speaker. I refer to pages 313 and 314 of
the 22nd edition of Erskine May:
Matters requiring urgent intervention of the house.
Urgent  matters which require the  immediate intervention of the  house, if they
should occur during a sitting of  the house, may be raised at once  in  spite of
the  interruption of  the  debate  or other  proceedings  (except a division  in
progress). A complaint  on such a matter is entertained by the house  as soon as
it is raised, but if  complaint  is  made  in  committee  the  chairman  reports
progress and the Speaker resumes the Chair. If the  matter does  not require the
immediate intervention of the house, however, leave will be refused.
The footnote to that provision states:

Proceedings have been  interrupted  to allow the raising of a communication to a
newspaper  of a  memorandum explanatory of a bill which was to be introduced the
next day, after the memorandum had been  presented  but  before it was available
for members.
This morning a briefing was called  by the Minister for Small Business, at which
she circulated a press  release that mirrors exactly the detail that seems to be
contained in the bill. She stated in her press release:
Victoria's  liquor laws  have  been overhauled  creating  a new system  blending
social responsibility and a fairer go for business.
Apart from pre-empting the decision of  the house on this legislation, she seems
to  have pre-empted the bill and let the media and other interested parties know
the contents of the bill before it has been introduced into the house.

I might add that the briefing was personally  addressed by  the minister  to the
same effect as she is quoted in the media release.
An article  in this  morning's edition  of the Herald Sun, under the headline 'A
Liquor Revolution', again 
pre-empts the detail we now know is contained in the bill.