Articles
Liquor Licensing - Cut the bureaucratic red tape for producers - OCT09
Download Original Article
PDF Document
CUT THE BUREAUCRATIC RED TAPE FOR PRODUCERS
If you are sick of the bureaucratic red tape involved with acquiring a Producer’s Licence and the restrictions imposed, then you will be excited that a new Bill has recently been introduced into Parliament to amend the Liquor Licensing Act 1997 (Act). The Bill has some exciting amendments for the holders of a Producer’s Licence.
Offer Wines for Tasting
When providing wine for tasting, would you like to provide another wine that is not produced by you for comparison? Currently the Act allows the holder of a Producer’s Licence to sell, or supply for sampling, liquor that is their own product. The Bill provides amendments to the Act that will allow liquor other than the licensee’s own product to be provided as a sample in comparative tastings, and to be offered to consumers in a designated dining area. At the moment, if a producer wishes to have a restaurant and supply other liquor that is not their own product, they are forced to have a separate licensed area and a separate liquor licence, such as a restaurant licence.
The Bill also provides that an amount of liquor of a particular kind will not be considered to be a sample if it exceeds the prescribed amount of that kind of liquor. At this stage the details of the prescribed amount are not given, as this will follow at a later date in the regulations with further consultation with the industry, if passed.
Two Licensed Premises
Would you like to have a second licensed premises one at the winery and one in town?
Currently a licence may only relate to one licensed premises. The Bill provides that, in the case of a Producer’s Licence, a licensee may have up to two licensed premises approved under a single licence, one at the licensee’s production premises and one elsewhere, for example in a nearby town. If a licensee does not have a production premises or does not wish to have an outlet at the production premises, the licensee will only be able to have one licensed premises.
In the case of a producer of wine with production premises in a wine region, the second outlet must be in that wine region.
The region for a wine producer is determined by the wine regions defined in accordance with Australian Wine & Brandy Corporation Act 1980.
Joint Cellar Door
Do you want to share a cellar door with other producers in order to reduce overheads?
Currently the Act does not allow two or more licence holders to operate the same premises. The amendments will allow the holder of a producer’s Licence to enter into an agreement with other producers to participate in a collective outlet. A collective outlet is the part of the licensed premises where each producer can sell or supply their own products. The area to be used for the collective outlet will be approved under individual Producer’s Licences and, to the extent that the premises are shared, each participating
licensee would be responsible for all compliance matters and the employment of a responsible person at the collective outlet. An additional licence would not be required for the collective outlet, thereby reducing cost to business.
The number of producers permitted to form a collective outlet will be determined by the Licensing Authority, and an application will not be allowed if the number of licensees involved, or the nature and extent of the trade, meaning that it would be authorised by the Retail Liquor Merchants Licence or a licence of some other category. The establishment of a collective outlet is designed to enable producers to reduce administrative, staffing and other overheads and also to assist in the promotion of tourism in various wine regions.
No Limited Licence
Do you find it frustrating to have to apply for a limited licence for the same festival events each year?
Currently, holders of a Producer’s Licence cannot sell or provide samples of their own product off the licensed premises unless they apply for a limited licence each time they wish to attend a local market or festival. The Bill will allow producers with production premises to sell or sample their products at regional festivals and farmers’ markets under their Producer’s Licence. This will effectively extend the producer’s retail outlets to farmers’ markets and will assist to optimise tourism. The details of the markets will be endorsed on a licence, and in the case of wine, the approval will be limited to sites and events occurring within the same region as the producer’s licensed premises.
Exemption 5 for Failed Crops
Do you need to purchase wine to complete your vintage in circumstances that are beyond your control?
The Bill also provides the Licensing Authority with the power to exempt a producer from the requirement at a substantial proportion of blended wine for licensee’s own product in special circumstances beyond control of the licensee, such as a failed crop or a fire. This will allow producers to continue to operate, reducing the financial and other impacts of the circumstances of wine production. The amount of wine that can be purchased will be limited to the licensee’s own production capacity. This does not in any way diminish the effect of laws applied to the labelling or marketing of wine.
Act Now
Do you see a need for these amendments?
These amendments are very exciting for producers and will reduce a lot of red tape. However, these amendments are still in the form of a Bill and may take some time to be legislated if at all. Nevertheless, we can assist you in achieving these outcomes now.
If you would like to find out more about these amendments, or any other Liquor Licensing or wine law issues, please contact Lisa Dowdy.
