[Greens-Media] Media release: A legitimate reason to whine: cellar door risk based license fees

[John Kaye]

A legitimate reason to whine: cellar door risk based license fees

Media release: 23 July 2014 

Greens MP John Kaye said, "The risk-based licensing system was supposed to be proportionate to a venue's level of risk. It is ridiculous to think that a small independent cellar door in regional NSW should pay the same base risk price as that of a club or full hotel in George St Sydney.

"Cellar door operators have nowhere near the same risk factors as other premises. Their typical clientele, business model and operating hours are as distinct from the conditions that contribute to risk in a venue as it can get.

"The broad license category of Producer/Wholesaler has captured the small viticulturists who actually work to improve our relationship with alcohol.

"Rather than a commodity to be consumed quickly and in large quantities, cellar doors and local wine businesses encourage valuing and appreciating the drinks in a more considered way.

"Wine tours in the Hunter Valley or Orange region in no way compares to a pub crawl in the city or suburbs. The licensing must be responsive enough to not be so onerous as to force positive proprietors out of the market.

"The base charge may seem insignificant to the city hotels and clubs but will have a significant impact on the regional small businesses.

"Wine makers and cellar doors boost tourism, local industry and the economy. They promote a positive relationship with alcohol and pose almost no on-premises risk. Minister Grant should reconsider the regulation and introduce some nuance into the licensing categories.

"Likening a small independent cellar door to the large scale producers or wholesalers whose products are intended to be consumed in large quantities is arcane and disproportionate.

"Independent wine producers are a positive sector of the industry that should be encouraged. The base fee they will be lumped with is extremely disproportionate to that which more dangerous venues will be charged," Dr Kaye said.

Background:

Amendments to the Liquor Act 2007 were introduced in January this year in response to the public outcry about the harms of alcohol fuelled violence on the streets of Sydney's CBD.

The amendments attempted to deal with the problem of violence through a range of initiatives. One of which was the introduction of risk-based licensing which sought to make the more violent, or risky venues contribute more to the cost borne by the state of dealing with alcohol-fuelled violence. 

The government has since released details of the risk-based licensing system[1]. The structure involves a series of base fees per license type with loadings related to risk factor assigned on top.

According to the regulation gazetted on 16 May[2] outlining the scheme, as producer/wholesaler licence holders, from 2014/15 cellar doors will be required to pay an annual base fee of $500 to be paid by 29 May 2015.

Producer/wholesalers will pay the same base rate as hotels, clubs and bottle shops where the licensee holds 3 or less such licences. 

Cellar doors, who are not connected with the alcohol-related violence and risks associated with pubs, clubs or bottle shops and who are vital to the tourism industries of many regional areas, have been allocated the highest base fee price of any of the individual operator options. 

Only proprietors with packaged liquor outlets with four or more would have to pay a base fee higher than that of cellar doors. 

It is acknowledged that many hotels, clubs and bottle shops would end up paying a lot more than cellar doors under the scheme due to the loadings for poor record and other matters, but it still does not seem fair to force cellar doors to pay a tax introduced to solve a problem not of their making.

For more information: John Kaye 0407 195 455