On-licence licensing manual

An on-licence applies to a premises where the licensee can sell and supply alcohol for consumption on the premises; and can let people consume alcohol on the premises. There are three kinds of on-licence:

1. A full on-licence pursuant to s.14.
2. A BYO restaurant on-licence pursuant to ss.15 and 37.
3. A caterer's on-licence pursuant to ss.14, 16 and 38.

An applicant (carrying on the business of a restaurateur on the premises) can ask for the licence to be endorsed (pursuant to s.37) to be a BYO licence only. This means the licensee can:

• let any person who is in the restaurant to dine to consume any alcohol brought there by that person or by any other person who is there to dine with him or her; and let the person who brought the alcohol there remove any of it from the restaurant if the container it is in is sealed or resealed
• sell and supply, for consumption in the restaurant by any person who is there to dine, any food or hot drink containing not more than 14.33% alcohol by volume
• let people consume alcohol on the premises.

Section 14 [On-licences generally] of the Act does not apply to BYO on-licences.

An applicant caterer can ask for the licence to be endorsed for catering. This means the licensee can deliver alcohol from the premises that the on-licence is issued for and sell it on any other premises for consumption there by people attending a reception, function, or other social gathering promoted by a person or association of people other than the holder of the licence.

It also means that the licensee can sell and supply alcohol for consumption on the premises the licence is issued for and can let people consume alcohol on the premises the licence is issued for if the licensee wants to do so (because s.14 applies to caterers).

In brief:

• Completed applications, in the prescribed form, are sent to the relevant District Licensing Committee for processing.
• Enquiries are made into each application by the Licensing Inspector, Police and Medical Officer of Health (or the MOH's s.151 delegate). The Police and the Medical Officer of Health must enquire into every application but must only submit a report to the District Licensing Committee if they have any opposition.
• The Licensing Inspector must enquire into, and file a report with the District Licensing Committee on every application. Typically the Inspector collates the reports from each agency (where applicable) and submits a report to the District Licensing Committee providing an assessment of the application criteria and a summary of the views of the Police and the Medical Officer of Health.
• The District Licensing Committee makes a determination, which could be on the papers or at a public hearing. This can be appealed to the Alcohol Regulatory and Licensing Authority, and subsequently to the High Court.

Download the process map (PDF)

An applicant must meet the legal requirements for holding a licence, as presented in s.28 [Who can hold on-licences, off-licences, and special licences]. The licence must also be considered in accordance with the factors set out in s.105 and 106 [Criteria for issue of licences].

Police, Medical Officers of Health (and their delegates), and Licensing Inspectors should all be familiar with s.105 and 106. These criteria provide the basis on which a licence is granted and signal to applicants and regulatory agencies the types of issues being addressed through licence enquiries.

When writing any report, making any decision, and writing any decision, District Licensing Committees and reporting agencies involved in the administration of the Act must ask themselves the following four questions:

1. Is my report, proposed action, proposed decision for the benefit of the community as a whole (that is the community that will be affected by the application) – in accordance with s.3(1)?
2. Will it help to achieve the safe and responsible sale, supply, and consumption of alcohol – in accordance with sections 3(1)(b) and 3(2)(b) and 4(1)(a)?
3. Will it help to achieve the minimisation of alcohol-related harm – in accordance with sections 3(1)(b) and 3(2)(b) and 4(1)(b)?  [alcohol-related harm is defined in s.5 and is the same as s.4(2)(a) and (b)]
4. Is it reasonable? In accordance with s.3(2)(a)?

The answers must all be affirmative as the Act must be administered consistently with its purpose and object.

Refer to R S DHILLON LIMITED [2013] NZARLA PH 920 (PDF download)

This was the first ARLA case that considered s.105.  Although it was an application for an off-licence, the Authority guidance in paragraphs [28]-[54] apply generally to on-licence applications as well.

The form of application is prescribed in the Regulations: Form 3 – Application for on-licence or renewal of on-licence.

At a local level, territorial authorities may add extra requirements for the applicant eg, additional Host Responsibility questions.

On receiving an application for licence, there is an initial check for completeness before the details are entered into a document management system.

On-licence applications must contain the following:

• A signed application form. This form should be signed by the applicant or on-behalf of the applicant, by an authorised person such as the director of a company.A signed application form. This form should be signed by the applicant or on-behalf of the applicant, by an authorised person such as the director of a company.
• The prescribed fee.  
• Prescribed information about the applicant, premises, managers, business details and conditions (see Form 3), including evidence that the applicant can hold a licence to sell alcohol under the Act.  
• A floor plan of the premises clearly showing the area to be licensed, the principal entrance, and any area to be designated as a supervised or restricted area.  
• A statement regarding compliance with fire safety standards.  
• Except in the case of an application relating to a conveyance, a Natural and Built Environment Act 2023 (NABEA, formerly the Resource Management Act 1991) certificate and a building code certificate (check for restrictions in the NABEA certificate in relation to the style of premises, eg, some restaurants and night-clubs may be taverns by definition).  
• For a body corporate applicant, copy of certificate of incorporation (or equivalent document).  
• Other relevant information that may be asked for, depending on the territorial authority (to assist in assessing relevant s105 criteria):
  • Details of relevant experience of applicant/directors etc.
  • Alcohol management plan or host responsibility policy and host responsibility implementation policy/plan.
  • CPTED checklist.
  • Proposed employee training manuals/logs/induction/terms of employment policies.
  • Any business plan.
  • Noise management plan.
  • Security plan/crowd management plan.
  • Plan for managing any outside areas.
  • Details of other beverages apart from alcohol eg, non-alcoholic, low alcohol.
  • Food menu.
  • Photos/artist impressions of the premises.
  • A scale plan showing the design and layout.
  • Map of the location.
  • Detail of any other on-premises activity eg, karaoke, gaming machines.
  • Statement dealing with the impact or otherwise on the amenity and good order of the locality.

Who does this?

It is the role of the Secretary of the District Licensing Committee to ensure that the application is complete before it is sent to the Police, Licensing Inspector and Medical Officer of Health. In some locations this task may be delegated in writing to territorial authority staff or the Licensing Inspector.

It is important to note that if the application is incomplete it may be returned by the agencies and this will impact on time taken to process the application.

Application sent for enquiry

The Secretary of the District Licensing Committee must send a copy of a completed application, including any documents filed with it, to the Police, Medical Officer of Health and Licensing Inspector for checking.

Enquiry reporting times

The Police or the Medical Officer of Health must report any matters in opposition to the application within 15 days from the date they receive the application. The Licensing Inspector must report within a reasonable timeframe.

Hints and tips

• Build rapport with the District Licensing Committee and your partner agencies by acknowledging receipt of an application and confirming the date when oppositions must be sent by.
• Keep lines of communication open between the District Licensing Committee and reporting agencies to ensure everyone is working to the same timeframes and expectations. Reporting agencies have a duty to collaborate by establishing and maintaining arrangements with each other to ensure ongoing monitoring and enforcement, and by working together to develop and implement strategies to reduce alcohol-related harm.
• It is good practice for the Police and Medical Officer of Health to send a response to every application, including ‘no opposition’ where appropriate.

Do the plans adequately define the licensed premises?

• Carefully inspect the plan. Applications sometimes include areas that the applicant is not entitled to include eg, part of a public place. 

Does the plan adequately and clearly show any designated areas?

• Taverns and hotels have statutory requirements for the premises or parts of the premises to be designated as restricted or supervised areas (s.119); other types of premises may be undesignated. This could be done on a time basis eg, supervised before 9pm and restricted after 9pm.

Does the plan identify the principal entrance/s?

Who does this?

Licensing Inspector.

Confirm tenure of premises

Does the applicant own the premises?

• In the application form the applicant is required to state whether he or she owns the proposed premises.

If the applicant is not the owner, he or she:

• may provide written consent from the legal owner to licence the premises
• must state the form and length of tenure, and provide the full legal name and address of the owner. Tenure can take many forms including leases, assigned leases, sub-leases and rental agreements. Some territorial authorities may ask for evidence of the tenure (eg, lease agreement).

Does the applicant have proper tenure for all the areas sought to be licensed?

• For example street trading, common areas, Queen’s chain, areas subject to a covenant given in order to develop a whole complex by way of resource consent. This consent may be different to the s.100(f) certificate tended with the application.
• Refer to the submitted plans to see if any of the points above are included in the areas sought to be licensed. If so, ensure an appropriate consent is attached.

Who does this?
Licensing Inspector.

Check evidence of compliance with fire safety standards

Confirm the fire declaration states that the owner provides and maintains an evacuation scheme, or that the owner is not required to do so because of the building's current use, or that the owner is exempt from doing so because of the nature of the building.

Who does this?
Licensing Inspector.

Does the applicant meet any of the following?

• A person of at least 20 years of age.
• Any company within the meaning of the Companies Act 1993 that is not prevented by restriction in its constitution from selling alcohol or holding a licence*.
• Any body corporate. A certificate of incorporation or documentary evidence of incorporation must be provided.
• A board, organisation or other body that is authorised by another enactment to sell alcohol or hold a licence under this Act*.
• A licensing trust or community trust.
• A registered limited partnership that is not prevented by restriction in its partnership agreement from selling alcohol or holding a licence*.
• A partnership comprising members of any of the types set out above.
• A Government department or other instrument of the Crown.
• A territorial authority, whether or not expressly authorised by any other enactment to hold an on-licence under the Act.
• A trustee within the meaning of the Trustee Act 1956. As a rule, a private trust cannot hold a licence in the name of the trust ie, the Smith Family Trust cannot hold a licence. The licence must be held personally by one of the trustees on behalf of the trust.
• A manager acting for any person pursuant to a property order, if the order authorises the manager to sell alcohol or hold a licence*.

* includes any restriction on holding a licence or licences of the kind/s sought

Hints and tips

If the applicant is a company, carry out a Companies Office check (and potentially check the Personal Property Securities Register).

Who does this?

Licensing Inspector and Police.

Suitability may be established by considering a range of factors. Each agency will consider specific areas of an applicant’s suitability, as set out in the table below (note this is not an exhaustive list of factors, and the roles allocated are indicative only).

Hints and tips

Document and keep a complete record of all enquiries as this may later need to be used in evidence.

Does the applicant engage or propose to engage in the sale of goods other than alcohol and food, and if so, which goods? eg, tobacco.

Does the applicant engage or propose to engage in the provision of services other than those directly related to the sale of alcohol, and if so, which services? eg, adult entertainment, bowling, cinema, gaming machines.

This will help determine whether the premises fit within certain definitions eg, a tavern.

Some examples of applicants who may fit this category are hairdressers who wish to supply customers with an alcoholic drink and retail outlets wishing to supply customers with an alcoholic drink whilst shopping.

Is the food adequate for the type of premises?

• The holder of an on-licence must ensure that, at all times when alcohol is sold or supplied, a reasonable range of food is available for sale and consumption on the premises, in portions suitable for a single customer, at reasonable prices and within a reasonable time of being ordered. District Licensing Committees will require a menu to be submitted as part of the application.

Are the steps to be taken in relation to minors and intoxicated patrons adequate?

• These measures relate to the provisions of the Act relating to minors and intoxication. Some District Licensing Committees will require these to be outlined in a Host Responsibility Policy. You may wish to request this as part of your suitability assessment, should it not be included in the application.

Are the steps to be taken in respect of alternative transport adequate?

• This is usually addressed in a Host Responsibility Policy. You may wish to request this as part of your suitability assessment, should it not be included in the application.

Is the applicant currently operating under a temporary authority?

Police, Licensing Inspectors and Medical Officers of Health should note any incidences of non-compliance that may have occurred during the period of temporary authority.

This section looks at ensuring the off-licence aligns with any policies or regulations that may place restrictions on the trading hours for a licence.

Trading days and hours

Are there any restrictions on hours imposed by resource or NABEA consent, or a Local Alcohol Policy (LAP), or has an undertaking been made in relation to days and hours of trade?

Territorial authorities may have an operational LAP. Check with your District Licensing Committee to see if a LAP is in place and, if so, what conditions the LAP permits.

Who does this?
Licensing Inspector and Police.

Trading hour restrictions

Have the statutory conditions in s.47 been applied to the licence?

• The holder of an on-licence must ensure that no alcohol is sold or supplied on the premises on Good Friday, Easter Sunday, Christmas Day and until 1pm on Anzac Day.
• There are exceptions for those living on the premises and those present on the premises for the purposes of dining.

Other legislation

Is there any other legislation that may prevent the granting of this application?

• A NABEA Plan sets out policies and rules on the use, development and protection of land and natural resources in line with the NABEA eg, operating a tavern in a trust area, park, reserve or on Department of Conservation land. 

Is the amenity and good order of the locality likely to be reduced, by more than a minor extent, by the effects of the issue of the licence?

• This means the extent to which the locality in which the premises concerned is situated, is pleasant and agreeable. This is a subjective view and guidance will be derived from case law.
• Regard must be had to current and possible future levels of noise, nuisance and vandalism; the number of existing premises that hold on-licences in the locality; and the extent to which the purposes for which land near the premises concerned is used are compatible with the purposes for which those premises will be used if the licence is issued.

Is the amenity and good order of the locality already so badly affected by the effects of the current licences in the area that:

• the issue of this licence would be unlikely to reduce the amenity and good order of the locality further (or would be likely to reduce it further to only a minor extent); but it is nevertheless desirable not to issue any further licences?

This is also subjective and requires an assessment of the effect (if any) of the premises already located in the area.

For a renewal, the question is whether the amenity and good order of the locality is likely to be increased, by more than a minor extent, by the effects of a refusal to renew the licence

Hints and tips

• R S DHILLON LIMITED [2013] NZARLA PH 920 (PDF download)
• Re Venus NZ Ltd [2015] NZHC 1377, [2015] NZAR 1315

Who does this?

Licensing Inspector. Medical Officer of Health. Police

The Licensing Inspector may conduct an initial inspection to ensure that:

• all signage is in place
• all staff are appropriately trained
• a certificated manager is well versed with the running of the premises
• a Host Responsibility Policy and implementation plan are in place
• a CPTED assessment may also be carried out at this time and any issues can be raised
• (for existing premises) that they are operating in accordance with their licence conditions, any undertakings, and the Act

Who does this?

Licensing Inspector and Police. Medical Officers of Health have no powers of entry and can only conduct a compliance with the consent of the Manager on Duty.

The following conditions are compulsory:

• Stating the days and hours during which alcohol may be sold or delivered (s.110(2)).
• If there are in force regulations under this Act empowering the Authority or Committee to determine different levels of licensing fee prescribed by the regulations for premises of different kinds, stating the fees payable for the licensing of the premises concerned (s.110 (2))
• Stating (directly or by description) a place or places on the premises at which drinking water is freely available to customers, while the premises are open for business (s110(2)).
• For hotels or taverns, a designation that all or part/s of the premises are a restricted or supervised area (s.119).

The following conditions are discretionary (s.110(1)):

• Prescribing steps to be taken by the licensee to ensure that the provisions of the Act relating to the sale of alcohol to prohibited persons and the management of the premises are observed.
• Prescribing the people or kinds of person to whom alcohol may be sold or supplied.
• Imposing a one-way door restriction.
• Requiring a manager to be on duty under a BYO-restaurant on-licence.

The District Licensing Committee/ARLA may also impose any other reasonable condition that is not inconsistent with the Act (s.117).

Undertakings

• It may be more appropriate to request the applicant provide an undertaking to address any specific concerns around alcohol-related harm.
• This should be noted on the bottom of the licence as ‘An undertaking applies to this licence’.

Key definitions from the Act

• s.5 alcohol-related harm, amenity and good order of the locality, bar, hotel, licence, manager, permitted trading hours, premises, principal entrance, public notice, restaurant, restricted area, supervised area, tavern
• s.14 On-licences generally
• s.15 On-licences: BYO restaurants
• s.16 On-licences: caterers

Key sections of the Act (in addition to those above)

• s.3 Purpose of Act
• s.4 Object of Act
• s.28 Who can hold on­licences, off­licences, and special licences
• s.37 On-licences for BYO restaurants
• s.38 On-licences for caterers
• ss.43-45 Permitted trading hours
• s.46 No sale or supply outside permitted trading hours: all licences
• s.47 Sale and supply on Anzac Day morning, Good Friday, Easter Sunday, and Christmas Day restricted: on-licences
• ss.51-54 Non-alcoholic drinks, low alcohol drinks, food, transport information all to be available
• ss.56-57 Display of signs and licence
• s.100 Form of application
• s.103 Police, Medical Officer of Health, and Inspector must inquire into applications
• s.105 Criteria for issue of licences
• s.106 Considering effects of issue or renewal of licence on amenity and good order of locality
• s.110 Particular conditions: on-licences
• s.119 Restricted and supervised areas
• s.120 Variation of conditions
• s.126 Renewal of licence held by caterer
• s.127 Application for renewal of licence
• s.131 Criteria for renewal
• s.280 Variation, suspension or cancellation of licences other than special licences

Key forms

• Form 3 (Sale and Supply of Alcohol Regulations 2013). Application for on-licence or renewal of on-licence.
• Note that different District Licensing Committees may have developed their own application forms/ additional requirements.

• Check the licensee's trading history. Have there been any complaints?
• Have any inspections resulted in verbal or written warnings?
• Have there been any breaches of licence conditions, undertakings or the Act?
• Have there been any noise or nuisance complaints to local authority during past trading?
• Check that the applicant continues to qualify for the licence endorsement as an caterer if applicable (s.126)

Who does this?

Licensing Inspector. Police.

Since the current licence was issued, does the applicant have any new convictions, or have any significant other issues regarding the management of the premises arisen?

• If there have been issues involving the management of the premises, raise these in the report.
• Check the National Intelligence Application (NIA). Report any new convictions since the current licence was issued. If there are any new serious or relevant convictions consider opposing the application for renewal.
• If a renewal is opposed based on new convictions, consider lodging an application pursuant to s.280 for the cancellation of the licence.
• If at any time you become aware that a licensee has been charged with or convicted of any serious offence, consider lodging an enforcement application pursuant to s.280 immediately.

Who does this?

Police.

If you disagree with any proposed variation(s), you should state your opposition in your report. You may wish to take a stance in relation to the appropriate condition/s to be applied to the licence.

Hours/days of operation

• Some licensees may wish to extend their hours. This is something that the Licensing Inspector will address following consultation with the other regulatory agencies. Any request for an extension of hours must be considered in the context of any inconsistencies between the conditions as proposed and any relevant LAP or NABEA Plan requirements. An application to extend the hours of operation may also require new resource consent.

Manner in which the premises will operate, eg tavern or restaurant

• Check for restrictions in the NABEA certificate in relation to the style of premises.
• When there is a change in the style of operation, a new resource consent certificate may be required.
• Check any proposed changes to the menu, as this might mean a change in the style of premises eg, restaurant to tavern or vice versa.

Variation to premises

• Sometimes changes to the premises may be proposed, ongoing or completed. The premises may be renovated or extended. Depending on the nature of the changes, a building certificate may be required and new plans required.  

Designations

• Sometimes removal of designation or re-designation of a restricted or supervised area is sought in an application for renewal. lf the removal of a designation is sought, think about how this might impact on the ability of the licensee to prevent service of alcohol to minors. You should look at what happens in that area and what steps the licensee has put in place to ensure that alcohol is not sold or supplied to minors.
• A change in the style of premises may also require that a designation must now be included.
• If you disagree with the proposed situation around any designation, this could be a matter for opposition. In the opposition you may wish to take a stance in relation to the proper designation to be applied to an area or premises.

Who does this?

Licensing Inspector.

All staff should have regular training and a record of this should be maintained as evidence. This helps to demonstrate that the premises is well-run and that staff understand their legal obligations.  You may also want to see the content of any training to ensure it is suitable for the operation of the premises.  The applicant may also have policies and procedures in place relating to the sale and supply of alcohol that you may want to view.

Who does this?

Licensing Inspector. Police. Ministry of Health.