NT government to offer buy back of grocery store liquor licences

A scheme encouraging corner stores to sell their liquor licences has been praised as a ‘first step’ to reducing the Territory’s ‘saturation’ of grog. Here’s how the move will work.

Suburban corner shops may soon scrap their sales of alcohol, with the Territory government offering to buy back grocery store liquor licences.

Chief Minister Natasha Fyles has announced a four-week expression of interest period for the voluntary licence surrender as another measure to tackle violent crime and alcohol-related harm.

The move is one both Darwin Mayor Kon Vatskalis and Palmerston Mayor Athina Pascoe-Bell have called for.

Ms Pascoe-Bell said it was a “good start” and she was sure some operators would take it up.

“The City of Palmerston has also asked the government to consider buying back licences, even a compulsory acquisition of licences which are problematic and difficult,” she said.

“It’s been exceedingly difficult for everyone to manage access to alcohol, just because of the sheer number of takeaway outlets.”

City of Palmerston Mayor Athina Pascoe-Bell has welcomed the government’s move to offer to buy back liquor licences. Photograph: Che Chorley

Ms Pascoe-Bell said Palmerston had about 50 liquor licences in total, across grocery stores, restaurants, bars and bigger takeaway outlets.

“That’s one liquor licence per square kilometre,” she said.

“We’ve had extensive issues with people drinking in public places in parks and playgrounds in our suburbs, which causes significant disruption to the neighbouring areas.

“And unfortunately, it is everyone else except for the liquor outlet who has to do the cleaning up, whether that’s council picking up broken glass in playgrounds or just general rubbish in our public spaces.”

North Australian Aboriginal Justice Agency (NAAJA) chief executive John Paterson said he welcomed the move to reduce an “obscene” amount of liquor outlets, but said more needed to be done.

“Companies selling the alcohol that fuels harm in our communities have been allowed to keep profiting from these harmful and addictive products,” Dr Paterson said.

NAAJA chief executive John Paterson said the Territory had an “obscene” amount of liquor outlets. Picture: (A)manda Parkinson

“There are too many businesses profiting from selling alcohol, causing devastation and despair, and their role and responsibility to prevent harm from the products they sell has largely been absent from discussions on alcohol harm in the Territory.”

The Aboriginal Medical Services Alliances Northern Territory (AMSANT), People’s Alcohol Action Coalition (PAAC) and the Foundation for Alcohol Research and Education (FARE) have thrown their support behind the buyback scheme as well.

Ms Pascoe-Bell also raised concerns smaller liquor outlets were at “significant risk” of enforcing the rules of the banned drinkers register.

Concerns have been raised the Territory’s banned drinker register poses a risk to retail staff. Picture: Colin Murty

She said the BDR should remain, but said security needed to compensate for the risk it posed.

Ms Fyles denied the BDR created unsafe environments for liquor retailers.

“That is not what industry has told me,” she said.

“The BDR is simple, it is effective, it stops hundreds of people each day from accessing alcohol to then go on to cause harm.”

Ms Fyles said there were about 50 grocery store liquor licences across the Territory that could take part in the buyback scheme.

“(These licences) were always designed to be ancillary to grocery items,” she said.

“They had morphed into pseudo takeaway outlets which was not their licence condition.

“So that is when we bought in the 25 per cent cap.”

Chief Minister Natasha Fyles has announced a voluntary buyback of grocery store liquor licences. Picture: Pema Tamang Pakhrin

In January this year the government brought in quarterly reporting for the 25 per cent cap on liquor sales, designed to prevent alcohol from being the primary product of grocery stores.

“We often know that these licences cause harm in small communities that they use alcohol sales to potentially prop up that business,” Ms Fyles said.

“That was not the way these licenses were designed and it’s not the way they should operate.

“If they wish to hand back in their store licence, a licence that no longer exists in terms of getting a new licence, that we will consider financial compensation or reasonable amount to reduce these licences in our community.”

Grocery stores across the Territory have four weeks to indicate whether they would like the government to buy back their liquor licence.

The offers will be commercial in confidence, and Ms Fyles did not indicate how much the government would spend on the scheme.

“We clearly will take it on a case-by-case basis,” she said.

“We know the profit that is made, we know the volumes they do vary depending on the size of that store.”

Ms Fyles also said the moratorium on new takeaway licences remained in place and that the licences bought back under the scheme would not be re-sold.

“I don’t think anyone can argue we need more alcohol outlets for takeaway grog in the Territory,” she said.

The CLP has hit out at the move, with Namatjira MLA Bill Yan raising concerns licensees would be “coerced” into surrendering their licence.

Namatjira MLA Bill Yan said the buyback scheme, along with the 25 per cent cap, was hurting business rather than addressing the demand for alcohol among the community. Picture: Emma Murray

He also said the 25 per cent quarterly cap and fines issued for exceeding it would cost jobs.

“To me it smacks of policy by stealth,” he said.

“The people who want access to alcohol will move to where they can get it.

“Rather than tackling the issue, (the Labor government) are tackling these small operators.”

However Mr Vatskalis said it was a positive step forward to reduce the “saturation” of alcohol in the Top End.

“This is one of the issues I’ve brought to the attention of the Chief Minister,” he said.

“I believe there are about 70 licences (in total) in Darwin which is enormous for a city of 80,000 people.

“Some shops actually I don’t think should have a licence at all, other shops actually manage it very well.

“Some people probably want to get out of that business anyway because things are getting tougher.”

Lord Mayor of Darwin Kon Vatskalis has welcomed the government’s move to buy back grocery store liquor licences. Picture: Che Chorley

Mr Vatskalis said if not enough stores chose to sell their licence he would like to see the government intervene to forcibly buy some back.

“We have reached a saturation point – enough is enough,” he said.

“The government has to evaluate what’s better, the cost to the community or the cost of the government’s department licences.”

Mr Vatskalis has also called for police auxiliary liquor officers, known as PALIs, to be mandatory at every takeaway liquor outlet, trading hours to be restricted from midday to 8pm, purchase limits and extra police to tackle secondary supply.

He also welcomed the government’s bail reform, which passed parliament on Wednesday.

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