MEMORANDUM 126 01 March 2017
TO: Chair and Members
Finance and Performance Committee
FROM: Raaj Govinda
DATE: 23 January 2017
SUBJECT: Sale and Supply of Alcohol (Fees) Regulations 2013 - Regulation 19 (1) - Reporting by Territorial Authorities
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That the Committee approves the publication of a report on its website showing the alcohol licensing income received from fees payable in relation to, and its costs incurred in:
a. The performance of the functions of its District Licensing Committee under the Sale and Supply of Alcohol Act 2012 (the Act); b. The performance of the functions of its inspectors under the Act; and c. The undertaking enforcement activities under the Act. |
Purpose of Memorandum
1. To advise the Committee on its responsibilities to annually prepare and make publicly available a report showing its income from fees payable in relation to, and its costs incurred for all activities related to Alcohol licensing and enforcement under the Sale and Supply of Alcohol (Fees) Regulations 2013 (Regulation 19 (1) – Reporting by Territorial Authorities).
Background
2. The Act came into force on 18 December 2012 and through a defined transition process, the Act became effective in December 2013. The introduction of this new legislation was not well supported by Central Government and local authorities have had to a large extent develop processes to manage the new licensing regime.
3. One of the most significant changes to the way alcohol licences are issued under this new Act is the establishment of a District Licensing Committee (DLC) of Council. Public Hearings are run under the same rules as the Commissions of Enquiry and require formal procedures and protocols to be observed. Every application for a licence and manager’s certificate must be reported on by Licensing Inspectors and then considered by the DLC before a formal decision is issued.
4. The Act requires the NZ Police and Medical Officer of Health to report on licence applications and manager’s certificate which is a wider spectrum of applications than they were required to under the previous legislation.
5. The Act also requires additional accounting and reporting requirements as a result which are undertaken by Licensing Inspectors and administration staff.
6. As the Act’s focus is on alcohol harm reduction, it has resulted in Licensing Inspectors having to spend a considerable amount of their time on stronger enforcement and alcohol harm reduction initiatives and working in collaboration with the NZ Police and Medical Officer of Health.
7. The Act requires Territorial Authorities to report is prescribed in:
Regulation 19(1) Reporting by territorial authorities
· (1) Every territorial authority must, each year, prepare and make publicly available a report showing its income from fees payable in relation to, and its costs incurred in,—
· (a) the performance of the functions of its licensing committee under the Act; and
· (b) the performance of the functions of its inspectors under the Act; and
· (c) undertaking enforcement activities under the Act.
· (2) The first report required by this regulation must relate to the year commencing 1 July 2014.
8. The amounts received through fees and the expenses are detailed in the table below. All charges are stipulated in the Act and the Council has not made any amendments to it, as it is not able to without setting a Bylaw for this specific purpose.
9. The legal and other expenses associated with the development, consultation, and implementation of the Local Alcohol Plan (LAP) apart from the time the Licensing Inspectors spent on providing some intel during the development phase has not been included as the staff time involved for this particular task could not be separated out from other strategic functions that take place within Council.
10. The actual cost of the DLC function that is shown on the table below is an estimate as the DLC function sits within the Council’s Secretariat Services team and its costs run as part of the team’s annual OPEX, which makes it challenging to separate out.
11. Although the income under the previous legislation was significantly lower, the administration, reporting and enforcement costs were correspondingly lower. Under the new Act, the increase in fees provides the Council with an increased income, but it does not offset the time officers spend on the performance of its DLC, inspectorate and enforcement activities.
Table of Income vs Expenditure for 2015/16 Financial Year (GST Exclusive)
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TOTAL FEES RECEIVED 2015/16 |
$246,271.09 |
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ARLA FEES |
$19,085.00 |
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FEES RETAINED BY HCC |
$227,186.09 |
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COST OF PERFORMANCE OF THE DLC FUNCTIONS |
$26,791.94 |
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COST OF PERFORMANCE OF THE LICENSING INSPECTORS FUNCTIONS |
$200,252.72 |
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COST OF UNDERTAKING ENFORCEMENT |
$10,757.80 |
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COST OF PERFORMANCE FOR ADMINISTRATION WORK AND SUNDRY COSTS |
$48,000.00 |
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TOTAL COST TO HCC TO CARRY OUT COMPLIANCE WITH SASAA 2014 |
$304,887.45 |
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TOTAL LEFT / OVER |
-$58,616.37 |
There are no appendices for this Memorandum.
Author: Raaj Govinda
Manager Environmental Inspections
Reviewed By: Geoff Stuart
Divisional Manager, Regulatory Services
Approved By: Joycelyn Raffills
General Manager, Governance and Regulatory