Discount on alcohol fee ‘unsustainable’
Southland district liquor licensees will no longer get a fees discount but have dodged proposed increases.
Southland district councillors have decided to scrap their Alcohol Licensing Fee-Setting Bylaw 2015, effective June 30, 2022, ending a 30 per cent discount on government-set fees.
However, it could have been worse for business owners.
Council staff had recommended removing the
30 per cent discount, increasing annual, application and special fees by 10 per cent for the next two years and then 5 per cent increases for the two years after that.
That proposal had been part of the council’s long-term plan, to the ire of some in the industry.
In public submissions to councillors early last week, publicans and hospitality industry representatives said country pubs were struggling and compliance costs had compounded revenue decreases from Covid-19 related closed borders.
At a meeting on Wednesday, councillors put forth and passed a motion to revoke the bylaw effective from July 1, 2022, and use more of the rates take to cover the costs of managing the licensing business unit, which had been running at a deficit.
Council staff had presented an option to revoke the bylaw, which would be more consistent with the majority of councils in New Zealand, policy analyst Carrie Williams says in a report presented at the meeting.
Cr Karyn Owen said councillors had heard some [hospitality] businesses in rural areas could face closure, and queried: ‘‘Are we setting ourselves up to fail by putting fees up?’’
Cr Paul Duffy said: ‘‘We have known for a long time the country pubs are under pressure, but a 30 per cent subsidy is not sustainable.’’ Deputy mayor Ebel Kremer said it was all about timing, so suggested the 12-month delay and to look for internal efficiencies in the meantime.
Cr John Douglas said that after the 12 months, the costs would lay where they lie.
Louise Watts owns the Nightcaps Hotel with her husband.
Speaking to Stuff on Friday, Watts said the moves could result in the closure of the business.
‘‘I don’t know if we will renew our licences. We may have to close our doors,’’ Watts said.
‘‘We either have to struggle through or close our doors. We have a year to think about it.’’
‘‘We may have to close our doors.’’ Louise Watts Nightcaps hotel