Liquor outlets to be hit in pocket
Pravin Ranchod is worried the cost of selling wine and beer will reach a point where it will no longer be viable.
Hutt City Council is proposing to significantly increase the cost of licensing premises including bars, supermarkets and sports clubs.
At present, Hutt City recovers between 42 and 52 per cent of the cost of issuing licences. Officers want to increase that figure to 90 per cent, with some categories at 100 per cent.
For Ranchod, who has run his Petone grocery store for 25 years, the increase is hard to stomach.
He was already feeling the squeeze from supermarkets and the decline of smoking was also hurting. There was little money to be made in selling alcohol, but he viewed it as another way of attracting punters in the door.
Hospitality New Zealand regional manager Nick Hill opposed the increase, arguing it would have a detrimental impact on tourism and the Hutt economy.
‘‘This will inevitably result in operators passing on the costs to customers or absorbing the costs and significantly impacting on their profit and business viability,’’ Hill said.
Environmental health team leader Dean Bentley said the council had no option but to pass on the cost: ‘‘The cost of alcohol licensing simply exceeds the revenue required to undertake the work.’’
Although some councils ‘‘may be comfortable that ratepayers [were] effectively subsidising the alcohol industry’’ Hutt City was looking at other options, he said. Wellington City Council recovered 68 per cent of the costs of issuing alcohol licences.
The fee for the Muritai Yacht Club would increase from $1167 to $1916. In a submission to the council, treasurer Judy Francis said the ‘‘after-sailing get-together with a drink’’ was ‘‘an important part’’ of club culture.
An increase would not threaten the club financially, but not having alcohol would reduce camaraderie.
Council officers said grocery stores had survived prior to selling alcohol.