ACT MP Simon Court is advocating to abolish licensing trusts in West Auckland, Gore, Mataura, and Invercargill, arguing that the existing rules are outdated and restrict consumer choice.
Court has introduced a bill aiming to dismantle the “monopolistic” hold that these trusts have on the sale of alcohol, labelling it a “nanny state throwback” from the 1970s.
According to Court, these trusts limit competition, inflate prices, and fail to reduce alcohol-related harm in the community.
The licensing trust system restricts where residents can purchase or publicly consume alcohol, with West Auckland, for example, served by only eight taverns for nearly 300,000 residents. Court believes opening the market would stimulate job creation, improve accessibility, and allow locals to buy alcohol under the same national regulations.
Originally established decades ago to channel surplus profits into community projects, the trusts have contributed millions to local initiatives over the years.
However, Court claims the system is no longer financially sustainable, with the trusts now facing rising overheads and relying on poker machine revenue rather than alcohol sales. He highlighted that, despite the trusts’ intent to reduce alcohol harm, West Auckland residents can still order alcohol online and have it delivered, questioning the efficacy of the system.
Image credit: Eeshan Garg
