Source: ACT Party
ACT MP Simon Court, who sponsors the Sale and Supply of Alcohol (Repeal of Licensing Trust Monopolies) Amendment Bill, responds to recent reporting and feedback on the bill:
“My bill has received a very positive response from Westies frustrated with being denied choice and competition in pubs and bars,” says Mr Court.
“Some outlets have reported that my bill abolishes licencing trusts. This is not correct. Rather, it removes the trusts’ monopoly status, allowing new businesses to operate and compete.
“Trusts in Invercargill and Mataura, which do not restrict competition to the same extent as those in West Auckland, would be less affected by bill. However, Southlanders would be able to buy beer and wine from supermarkets and a range of liquor stores, as they do in most parts of the country.
“Claims that my bill undermines local democracy are fundamentally misguided. The free market is a democracy. Consumers are able to take a dollar and decide which goods and services they would like represented in the market, and which they don’t. With monopoly powers removed from trusts, individual consumers could choose whether to support the trusts or shop around.
“Other than with legislation, the only way to remove trusts’ monopoly powers is for locals to gather verified signatures from 15 percent of the residents and initiate a local referendum. That is higher than the national threshold of 10 percent for a citizen-initiated referendum, and in West Auckland it has proven a very difficult process despite the trusts’ own polling showing most residents oppose the trust monopolies.
“Finally, the trusts derive most of their profit from pokies, not alcohol. The trusts’ revenue is already well-diversified so they should not be concerned about competition from other hospitality venues, liquor stores, or supermarkets.”
