Guideline 69: Adopting a price control or supply control—legal protection for liquor accords and safe night precinct local boards

Liquor Act 1992—Sections 42A, 224A

Purpose

This Commissioner for Liquor and Gaming's guideline assists liquor accords and Safe Night Precinct (SNP) local boards to register price or supply controls to reduce alcohol-related problems.

Liquor accords and SNP local boards provide an important and practical framework for the liquor industry to work together, in a locality, to minimise harm caused by alcohol abuse and misuse and associated violence or public disorder.

The registration system gives local industry leaders a pathway to develop responsible practices in the sale and supply of liquor through price and supply controls that might otherwise restrict competition.

This guideline includes information on how a liquor accord or SNP local board applies to the Commissioner to register a price control or supply control with the Office of Liquor and Gaming Regulation (OLGR).

This guideline applies if:

  • a liquor accord collectively agrees to a term or adopts an initiative that controls price or supply of liquor or wine
  • a SNP local board adopts a local initiative that has the effect of being a price control or supply control.

Background

Under the Liquor Act 1992 individual licensees must minimise harm and the potential for harm from alcohol abuse and misuse. Where licensees as a collective body implement price or supply controls, this may have an effect of 'lessening competition' within the meaning of the Competition and Consumer Act 2010 (CCA).

The Liquor Act creates a price and supply controls framework in Queensland. Under the framework, registration exempts liquor accords and SNP local boards from the price or supply control (competition) provisions of the CCA if the controls are:

  • needed to minimise alcohol-related problems in certain localities
  • a proportionate response to the problems.

What are price controls and supply controls

Price and supply controls may be set as terms in an agreement, memorandum of understanding or other arrangement.

Price controls

A price control generally imposes a minimum sale price for a specific volume of liquor, for example:

  • setting a minimum price for 1 standard drink
  • agreeing that all low-strength beer must be sold at a lower price than mid-strength and full-strength beer
  • banning practices or promotions that discount the price of drinks and encourage the rapid consumption of alcohol, including drink discounts or happy hours.

Supply controls

A supply control generally prohibits the way liquor can be supplied, for example:

  • restricting supply based on the volume or strength of liquor contained in the product, such as
    • allowing a maximum quantity of cask wine to be purchased per person per day
    • prohibiting bottled spirits containing a high alcohol percentage from sale
  • limiting the times when certain drinks can be sold, such as
    • limiting cask wine sales from bottle shops to between 2pm and 9pm
    • not allowing rapid intoxication drinks (e.g. shots) to be sold after 10pm
    • not allowing spirits to be sold before 4pm on Friday, Saturday or Sunday
  • banning drink cards that give people multiple free drinks, for example
    • not allowing free or discounted drinks that could encourage patrons to consume excessive amounts of liquor more rapidly than usual (see section 142ZZ of the Liquor Act).

Deciding whether to adopt a price or supply control

Adopting a price or supply control is voluntary.

Liquor accords and SNP local boards may consider adopting a control where alcohol-related problems have been identified in local communities or precincts.

Stakeholder consultation

When deciding whether to implement a control and before applying for registration, liquor accords and SNP local boards should consult with:

  • local licensees who will be required to operate under the proposed control
  • local stakeholders such as the Queensland Police Service, local council, Queensland Ambulance Service, support services and other relevant stakeholders.

Applying to register a price or supply control

Before adopting a price or supply control initiative, liquor accords or SNP local boards must first apply to the Commissioner for registration.

Registering the initiative will provide local licensees with authority or legal protection for conduct relating to the proposed control.

Find out:

If you're unsure whether your initiative is a control that must be registered, contact OLGRstakeholder@justice.qld.gov.au.

Application process

You must apply using the approved form and provide supporting documentation, for example:

  • a copy of the minutes, resolution or agreement as evidence the control has been discussed and endorsed by members
  • a list of all licensees who agreed to the control
  • information and data about the local alcohol-related issues, including from the Queensland Police Service, Queensland Ambulance Service or patron support services
  • evidence of consultation with and support from local licensees and stakeholders
  • a description of issues from local licensees and stakeholders
  • a description of the identified harms the control will address.

Assessment process

Applications will be assessed to determine if the control mirrors a control in the Liquor Act (a mirror control). For example, members agree licensed venues will refuse to supply liquor to anyone who is unduly intoxicated or disorderly. This would be considered a mirror control because section 156(1)(e) of the Liquor Act already prohibits this practice. There is no obligation to register this type of control—the Commissioner will automatically register them.

The Commissioner will decide whether to register a price or supply control that isn't a mirror control. The Commissioner needs to be satisfied the control is:

  • appropriate for reducing harm
  • proportionate to the alcohol-related problem it is intended to address.

Effect of registration

A registered control has the effect of exempting a liquor accord or SNP local board from the competition provisions of the CCA.

Once notified a control is registered, the liquor accord or SNP local board is authorised to enact and promote the initiative.

Any authorisation applies only while the initiative is registered and only to the extent that the liquor accord or local initiative regulates the price or supply of liquor.

Changing a price or supply control

To change a registered price or supply control, the liquor accord or SNP local board must write to the Commissioner requesting the change. Email OLGRstakeholder@justice.qld.gov.au.

The Commissioner will decide whether or not to register the amended control.

De-registering a price or supply control

The Commissioner must de-register a control if no longer satisfied that it meets any of the following criteria:

  • is appropriate for reducing the alcohol-related problems as intended
  • is proportionate to the alcohol-related problems intended to be reduced
  • is enforceable under the Liquor Act.

Also consider…