"Responsive Regulation" Theory and the Sale of Liquor Act

Linda Hill, Liz Stewart

The Sale of Liquor Act 1989 liberalised New Zealand’s traditionally restrictive licensing regime, with the overall aim of moderate and safe enjoyment of alcohol by those over 20, sold through a range of responsibly managed licensed businesses. A 1997 Justice Department Review  has recommended further liberalisations. As a contribution towards this review, the Alcohol & Public Health Research Unit has investigated regulatory theories for insights relevant to liquor-licensing regulation.

The paper draws on the “responsive regulation” strategies of Ayres and Braithwaite, which  reflect research into the regulation of business in a wide range of industries. Amendments were developed and submitted to the Justice Select Committee.

They included (1) increasing responsiveness in the firm-specific agreement of the licence by allowing the attachment of host responsibility conditions specific to the premises; (2) allowing the Liquor Licensing Authority more discretionary power, especially in providing a better response to community concerns; and (3) clarifying the full range of sanctions available to the Authority.

We argue that amendments to the legislation along responsive regulation lines could lead to a more integrated and cost-effective  system for encouraging compliance and the good management of licensed premises.