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15 November 2013 by Matthew Jones

A Matter of Hours

As a practitioner in the liquor licensing field of quite a few years now, I have to admit to finding the current trading hours debate a little strange. At the risk of getting political, reacting legislatively to what are essentially emotional and illogical arguments (whether in the press or elsewhere) rather than looking at the substance of the matter seems more like the behaviour of the previous government than the new one.

I can’t even remember who was in power in 1992 when the current legislation commenced, but as a result of the original drafting of that law, and through subsequent amendments, what we have today actually includes some decent teeth when it comes to trading hours. Even back in 2000 when we took a case (unsuccessfully) to the Liquor Appeals Tribunal arguing for the ability to trade 241 hours the clear legal authority for the hours to be taken away in the event that trading activity lead to problems in the locality was a key argument.

That authority has been used on a number of occasions over the years, and importantly, a number of those decisions have been supported on appeal, reinforcing the power to take action where necessary. In the 2006 decision in the Molly Malones2 case for example, the Tribunal supported Liquor Licensing and Police when they took action to reduce the hours of that premises. The Tribunal found that “the cancellation of the privilege of the extended hours permit”3 was reasonable having regard to the violence which had occurred on a number of occasions. More recently the Normanby Hotel suffered a similar fate when the licensee failed to secure 5am trading in a challenge to a deemed refusal to renew the relevant permit4. The Tribunal was not satisfied that the licensee had “the ability to control the noise and behaviour of the number of persons who could reasonably be expected to be on the premises between 3:00am and 5:00am” due to its findings about the history of problems associated with the hotel.

Recently I heard Clubs Queensland’s Doug Flockhart on radio stating that there were very few 5am traders in the State ? around 100 out of 6,500 premises. Since 2009 and the introduction of substantial licence fees linked to late trading, to the list of those who have lost their late trading privileges for disciplinary reasons we can add a group of licensees who have opted to reduce hours to save costs.

So where does that leave us? Theoretically, we have around 100 operators in the State, each of which runs a tight enough ship not to have drawn the adverse attention of the authorities, and which are financial enough to meet the recurrent costs associated with this industry segment (which include not only higher licence fees but: security personnel, at costs of perhaps $20,000 annually for a smaller venue, and well into 6 figures for the larger ones, top notch surveillance cameras, ID scanners in an increasing number of places as well as penalty rates for staff and so on).

We do not have uniform trading hours in Queensland. We have trading finishing at nearly every hour of the day and night. There’s a licensed restaurant down the road from my place which doesn’t even open for dinner. So the proposed change in hours negatively affects those who have been able to retain 4 or 5am trading, and at the same time provides a benefit to those competing in the same market but with shorter hours. It makes absolutely no sense that a number of the businesses which will benefit from a blanket reduction in trading hours already have reduced hours as a result of poor trading practices.

Ill leave it to others to analyse broader statistics, but anyone who thinks 5am trading per se causes violent behaviour needs to look closely at the times when most of the reported assaults occur. Im unaware of any evidence base which even suggests a causal link, and certainly no logical basis for the view that reducing hours for some of the venues but not others will lead to a reduction in poor behaviour. If you accept that trading hours by themselves do not cause poor behavior, then making changes to those hours becomes nothing more than some kind of social experiment: an experiment which places businesses and jobs at risk.

What Malcolm Turnbull said of the mining super profits tax is apposite to the remaining crop of late trading licensees. He said you dont nobble your front-runners. Doug Flockhart said it made sense “statistically” to bring hours back to 3am. I would have thought the reverse made more sense, whether statistically or otherwise. In circumstances where we have strong and proven legislation around extended trading hours, why should those surviving licensees be effectively targeted in the absence of some real link between their trading activities and problems in the community? What’s completely clear is that in the past, including the relatively recent past, hours have been reduced where there is a proper case for action to be taken. I would defy anyone who suggests that Police and Liquor Licensing are anything other than vigilant in the prosecution of these matters, and it follows that licensees who have retained extended hours must arguably be doing the right thing.

Knowing all this, I’m left bemused that any government would contemplate arbitrarily reducing trading hours. The regime which is in place was created by Government, and comes with its own checks and balances. The competitive water has found its own level. There is simply no case for experimenting with changes in hours when the outcome is likely to be the loss of businesses and jobs for no improvement in behavior.

1. Shooters Saloon Bar 4 [2000] QLAT 32
2. Molly Malones Townsville Pty Ltd v Chief Executive, Liquor Licensing Division [2006] QCCTL 4
3. ib id at paragraph 69
4. Revestar Pty Ltd [2008] QLAT 76

Filed Under: News Tagged With: compliance, Extended Hours, licensing strategy, noise management, safe night out

8 April 2013 by Matthew Jones

Updates to Approved Manager Requirements

The Liquor and Gaming (Red Tape Reduction) and Other Legislation Amendment Bill 2013 will, among other things, make certain adjustmentsto the requirements with respect to approved managers. Most of the changes are achieved by adding to the existing approved manager provisions a requirement that in addition to being an approved manager the relevant person must also be an employee of the licensee. This is of significance when one considers that compliance with the approved manager requirements for many venues is often achieved using a director of the licensee company, or contracted third parties.

According to the explanatory notes, the intention of the amendment is "to ensure that an approved manager who is present at the premises must be employed in the capacity of an approved manager, not just performing other duties or present (sic) on the premises for social purposes". The amendment has broader implications however. The use of the term "employee" in the legislation has specific legal consequences, potentially excluding company directors who are not employed, as well as contractors. Some licensees use labour hire companies for the provision of personnel, including managers. Others have approved management agreements
with third party service providers. These arrangements are unlikely to achieve compliance with the amended requirements.

Interestingly, the proposed amendments to the closure for unlawful trading provisions in Section 141 include an express reference to the conduct of the business by an approved manager employed not by the licensee, but by a third party with an approved management agreement. In these circumstances there will be no basis for the premises to be closed, but the licensee will still be non-compliant with the Section 155AD requirement that an approved manager employed by the licensee be present or reasonably available.

The approved manager register which has long been considered overly bureaucratic and unnecessary will be scrapped. The explanatory notes to the Bill very accurately describe the register as "simply an unnecessary administrative burden and duplication of existing employment records kept by licensees". However, it’s unlikely that any of the fines handed out to approved managers forgetting to sign off after their shift will be refunded.

Filed Under: News Tagged With: approved manager, compliance, Extended Hours, RMLV, RSA

5 April 2013 by Matthew Jones

Low Risk Licence Applications Made Easier

In what is likely to be seen by several industry groups a s controversial change the Newman government’s red tape reduction bill will amend the Liquor Act to remove much of the expense and time constraints associated with the licensing process for restaurants and cafes.

Many existing licence holders will recall the standard process to apply for a liquor licence in Queensland included:

  • The preparation of a Community Impact Statement
  • The preparation of a Risk Assessed Management Plan
  • Seeking the consent of the owner of the freehold property
  • Advertising the liquor licence application: in a local newspaper, the Queensland Government Gazette and by way of a sign on the premises, to call for community comment or objection.
  • The completion of police criminal history checks on individuals involved in the application: company directors, major shareholders and individual applicants.

The proposed amendments, likely to pass unchanged from their present form given the Government’s overwhelming majority, will remove all five of these requirements for restaurant and cafe licence applicants under the following circumstances:

  • The premises is located in a commercial centre
  • The proposed trading hours do not extend beyond midnight
  • There is no amplified entertainment on the premises

These changes follow changes to liquor licence application procedures introduced in late 2012 which did away with the need for a successful applicant to provide documentary evidence of compliance with fire, health and building regulations. The combined effect of these changes should see a properly prepared liquor licence application approved in as little as four weeks. Although the application will still involve a range of matters, including Police and Council consultation, town planning and physical inspections, the changes will still considerably reduce the professional costs associated with the preparation and management of the process.

Filed Under: News Tagged With: amendments, approved manager, compliance, Extended Hours, restaurant, RMLV, town planning

12 February 2013 by Matthew Jones

Low Risk Liquor Licence Applications

Hot on the heels of last year’s cost and red tape reduction initiatives arrive a couple more very significant changes to the liquor licensing laws in Queensland. The first one has emerged without any fanfare (so far) and is in fact a brand new licence category: the cafe licence.

Since its inception in 1992 the Liquor Act has stipulated that food in licensed restaurants has to be prepared on premises, and must satisfy the meal definition, specifically, food that:

  1. is eaten by a person sitting at a table, or fixed structure
    used as a table, with cutlery provided for the purpose of
    eating the food; and
  2. is of sufficient substance as to be ordinarily accepted as
    a meal.

What this has meant is that businesses offering other kinds of food – perhaps prepared off site, or less substantial than a traditional meal – have been unable to obtain a liquor licence.

This situation has been resolved now with the acceptance of the provision of ?prepared food? as a principal activity within the Subsidiary On Premises licence class. Cleverly, the OLGR policy-makers have co-opted the prepared food references which appear in the licence fee sections in the Liquor Regulation to create the new class of liquor licence.

The new cafe licence now offers a range of options to food venues, especially those smaller venues unable to obtain a Small Bar Licence due to town planning restrictions.

The second and more recent change is the announcement this week of adjustments to procedural requirements for low risk applicants – namely restaurants and the new cafe licence.

Provided the licence has standard hours (10am to Midnight), there is no longer a need to produce a Risk Assessed Management Plan, no need to chase the consent of the land lord, and a more streamlined approach to criminal history checks! These changes will benefit both applicants for new licences and licence transfers in the relevant category.

What’s next? Watch this space.

Filed Under: News Tagged With: amendments, compliance, Extended Hours, licensing strategy, restaurant

20 February 2012 by Matthew Jones

Drink Safe Precincts and the State Election

The Queensland Election is only weeks away and although liquor licensing and alcohol haven’t featured prominently so far, a few months ago the State Opposition were reportedly considering winding back trading hours across the board. Other than a few media reports, there has been no official policy declared by the LNP. Shadow Attorney General Jarrod Bleijie is reported to have said in a statement “earlier club closing times were on the table if the LNP won government”.

The Bligh Government position on trading hours doesn’t appear to have changed since 2010, when it rejected the Law, Justice and Safety Committee’s recommendation of a reduction in trading hours, following its Enquiry Into Alcohol-Related Violence. Instead, the Government introduced the Drink Safe Precincts in Fortitude Valley, Townsville and Surfers Paradise on a 2 year trial basis.

As part of the assessment of the effectiveness of this measure, the Government is now seeking feedback from anyone who has experienced the DSPs.

To have your say visit www.qld.gov.au/drinksafe. You will be presented with a choice of four surveys, dependent on your experience of the precints.

Patron survey – if you visit pubs or clubs

Licensee survey – if you own a pub or club

Business and worker survey – all other business owners & workers, including employees on licensed premises, owners of unlicensed businesses and persons providing support services

Resident survey – if you live near the pubs and clubs

You may complete more than one survey if appropriate. For instance if you live in the area and visit pubs or clubs.

Filed Under: News Tagged With: amendments, compliance, DSP, Extended Hours, safe night out

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