A group of West Auckland residents have started a petition to remove the monopoly held by the Trusts over the sale and supply of alcohol in the area.
There are two licensing trusts in West Auckland. The Portage Licensing Trust covers the communities between New Lynn, Waikumete Cemetery, Glen Eden and Titirangi, while the Waitakere Licensing Trust covers the communities around Glendene, Piha, Henderson, Te Atatu and Kumeu. In these areas, only the trusts may operate hotels, taverns and off-licences. The two trusts were established in the 1970s as a community initiative to control the sale of alcohol in West Auckland, and return surplus profits to the community through grants, rebates to clubs, sponsorships and other support for community activities.
While the Trusts do not have control over anyone opening a licensed restaurant, nightclub or cellar door across the region, the influence of the governing body still has locals concerned.
Under Section 349 of the Sale and Supply of Liquor Act 2012, it is possible to remove the monopoly rights given to the trusts. First, a petition must be signed by at least 15 percent of electors in order to force a referendum. Secondly, over 50 percent of voters must vote to remove the monopoly – anything less would see the status quo remain.
A petition started by the West Auckland Licensing Trusts Action Group is currently doing the rounds with the aim of removing the monopoly held by the Trusts. West Auckland resident Nick Smale, who is part of the group, said that a range of reasons motivated members, but all were dissatisfied with the licensing trusts in one way or another.
“Some are frustrated that they can’t buy beer or wine at the supermarket, while others aren’t happy with the inability of private owners to start independent businesses,” he explained. “For others its more of a political thing.”
The petition was launched in August and currently has around 10,000 signatures – less than half of the 28,000 required. The Group is focussing on the benefits of opening the area up, and the economic benefits that West Auckland would enjoy if private operators were able to be granted licences. The current bars operated by the Trusts enjoy a less than favourable reputation, often criticised for lacking character and atmosphere while the Hangar in Henderson, owned by the Trusts was the worst bar in Auckland in 2015 with 33 recorded arrests – flying in the face of the Trusts’ argument that a centralised ownership model restricts alcohol-related issues.
There are also concerns about the way in which the Trusts distribute the revenue. 2011 saw only $38,000 returned to the community, despite having sold over $100 million in alcohol in each of the ten years prior. Critics have noted the lack of transparency surrounding the Trusts, also noting the Trusts’ hospitality revenues accounted for $23 million, while the amount from gambling totalled $113 million.
It will be a challenge to remove the Trusts – a referendum in 2003 saw 58 percent of West Auckland residents vote to keep the current model. However, as times have changed and Auckland has transformed itself into a top culinary destination, attitudes may have changed sufficiently to garner the votes necessary to remove the monopoly.
“It’s hard work,” Smale admitted. “Once you talk to people they tend to come on board, but it takes time to get in front of them and make them aware of the impact that the Trusts have. We’re all just ordinary people with normal jobs, so it will take time.”
While there is no deadline on the current petition, Smale is hoping to have the numbers by next year, in time for the referendum to be held in conjunction with the local body elections. Even if the referendum is successful, it won’t mean the end of the Trusts – the Birkenhead Licensing Trust relinquished their monopoly over liquor licenses in 2002 after a similar vote, but still managed to give $1.75 million back to the community in 2016, despite only owning two venues.
“Even if the monopoly is removed, there’s no reason why the Trusts can’t continue to operate and give back.”
While the Trusts did not respond to requests for comment, chief executive Simon Wickham has previously spoken out against the petition, labelling it the work of a “very small vocal group of people.”
"We'd make sure people understood what they stand to lose if a referendum was held," he said in June. "Our plans to give back millions more over coming years wouldn't be possible if a referendum was held and The Trusts current model was undermined."
“We’ll respect the community’s choice if they think it’s time for another referendum,” he wrote in an op-ed after the petition had launched. “But we want people to be well informed about what we do and don’t do before they make that decision. And we want people to think carefully about what’s at stake. Do we really want to put hospo before hospice, a sauvignon before schools, or a cabernet before community?”
Of course, there are ways around the monopoly. Hopscotch Brewery in New Lynn only makes 50 litres of beer a fortnight, making it one of New Zealand’s smallest commercial breweries, but makes use of a loophole meaning that owner Hugh Grierson is also allowed an off-licence. Grierson sells his own beer, alongside brewers like Garage Project and Epic, in a 30-tap dispensary inside his ‘Customs Controlled Zone.’
"People come in and say: 'Is this legal, do you have a licence, can I try these beers?' Then they go, 'Oh, you're brewing. Nudge, nudge, wink, wink' and I go, 'No, I'm brewing.' They think it's a trickster move to get around the Trusts,” he said.
Grierson wasn’t motivated by a grudge and said that he was a brewer first and foremost.
"I live out west and I was aware of the gentrification. That's one of the reasons the Trusts are getting grief because people expect decent bars, decent coffee. People come in here complaining about the Trusts – I hear it all. There's nothing with a bit of character and that's personable."
However, the influence of the Trusts could be a blessing in disguise for the area.
"West Auckland could turn into a mecca for craft beer because you could have little tap rooms popping up all over the place that are not controlled by the Trusts."
