When buying or opening a new business there is a lot to do and if you are buying or opening up a new café, restaurant or bar the success of your business is most likely to be dependent on a liquor licence.
What law governs the sale of alcohol?
The Sale of Liquor Act 1989 governs the sale of liquor in New Zealand. If you are intending to sell alcohol from your premises for consumption on the premises, an on licence is required.
If I am buying a business do I need to apply for a liquor licence?
A liquor licence can not be transferred as part of the business sale and purchase as it is specific to the owner of the business and the premises. So if you are purchasing a business, changing the premises for the business, or opening a new business you will need to apply for an on-licence.
Who do I make the application to?
An application for a liquor licence must be made to the District Licensing Authority at your local council offices. Before making an application you will need to consider who owns the business (ie who will be receiving the profits from the sale of alcohol) as this should be the entity that makes the application.
What information do I need to provide?
An application for an on licence must include the following:
• Description of the premises;
• Either a certificate of compliance certifying that the activity fully complies with the Resource Management Act and the District Plan or a resource consent for the activity;
• Confirmation that the Building Act and Building Code are being complied with.
A separate application must be made to Council regarding compliance under the Resource Management Act prior to making the liquor licence application. Provided that Council receives all the necessary information, Council has 20 working days from receiving the request to issue a certificate of compliance or for an existing use certificate. If resource consent is required for the activity the time frame will be longer however it will depend on the nature of the consent required.
What is the process?
Once all the information is available and the application lodged with the Licensing Agency, the Agency will seek reports on your application from reporting bodies such as the Police, the Liquor Licensing Inspector and the Medical Officer of Health. Your application will be notified twice in local newspapers. The second advertisement will be notified no more than 10 days after the first notice. Any member of the public may make an objection to the District Licensing Authority to your application within 10 working days from the date of the first notice.
What if someone objects to my application?
If an objection is received or one of the reporting bodies opposes the application, then the application will be forwarded to the Liquor Licensing Authority for determination at a public hearing. The Liquor Licensing Authority sits in Wellington.
If there are no objections to your application, an on licence is then usually issued for one year and then renewed every three years thereafter.
How long does it take to obtain a liquor licence?
It can take between 4 and 6 weeks to process the application for the liquor licence – this excludes the time it takes to obtain compliance certificates under the Resource Management Act and the Building Act. If you are considering purchasing a business and a liquor licence is an integral part of the business, or you are setting up a new business, early consideration of the process of applying for a liquor licence will save delays in your opening date.
Is anything else required?
A certified manager must be on duty and present at all times when liquor is being sold or supplied. If you are buying a business it is likely that your employees will be certified Managers however this should be checked before settlement. If you are establishing a new business you may also need to apply for a manager’s certificate if you have not employed anyone already certified.
Temporary licences
If the premises has an existing on-licence, it is possible to apply for a temporary authority while your new on-licence is processed. The temporary authority takes 20 working days to process so your settlement date will need to be adjusted to allow time for this authority to be processed.
