Dunedin bar owners fear "substantial" fee increases may force them to close, when alcohol law reforms are introduced later this year.
The warning came yesterday, from Hospitality Association of New Zealand (Hanz) Otago branch president Mark Scully.
He said fee increases to be introduced as part of the Alcohol Reform Bill could be the final nail in the coffin for some "battling" Dunedin bar owners and other licensed premises.
"That's a concern to all of our members.
"As you can imagine, a lot of our members are trading in very difficult conditions."
His comments come as Dunedin city councillors prepare to consider a report about the impact of the new legislation at next week's planning and environment committee meeting.
The report, by council liquor licensing and projects officer Kevin Mechen, says the reforms are expected to result in bar owners and other licensed premises owners bearing the full cost of the licensing process, as part of a new fee structure.
At present, Dunedin bar owners wanting to open a new venue, or shift an existing one to new premises, for example, pay $793.24 for a new licence application fee.
That covered half the cost of processing each application, and the council covered the remaining 50% through rates, Mr Mechen said.
Under the proposed changes, the full cost would be covered by applicants, meaning Dunedin bar owners would have to pay about $1600 for each new licence application, if everything else remained the same, he said.
However, the Ministry of Justice would set the new fees once the reforms were passed, and had indicated "substantial" increases were coming, although specifics had not been released, he said.
In addition, bar owners and others would have to renew their applications for on and off-licences, and other types of premises, more often under the proposed reforms, Mr Mechen said.
At present, applicants paid a fee for their initial application, renewed it with another fee after a one-year probation period, and were charged again for further renewals every three years after that, he said.
Under the proposed changes, those steps would remain, but with higher fees, and a smaller annual renewal fee would be introduced as well, he said.
On top of that, councils would have the power to increase the fees further, through bylaws, to cover the cost of any additional costs they faced, he said.
Under the reforms, the District Licensing Agencies would be restructured to become District Licensing Committees, to be chaired by an elected member of the council and two community representatives.
Each committee would handle all applications for liquor licences, renewal and manager's certificate applications within their area, in some cases leading to full hearings, Mr Mechen's report stated.
Following public consultation, the council would also confirm a new alcohol policy for Dunedin, setting criteria used to control when licences can be granted.
Just how that would work was yet to be determined, Mr Mechen said.
"I have no idea how we are supposed to work that out .. . I'm pleased I'm not going to be on the district licensing committee."
Mr Scully questioned whether the council would be resourced to do the extra work, and worried the workload could result in additional costs being passed on to bar owners.
The result, he feared, would be more bars forced to close in Dunedin.
"It's happening now, and it [reforms] will certainly accentuate it ... I do think it's going to put massive pressure on."
Mr Mechen agreed, saying Hanz representatives and bar owners were "shuddering" at the possible changes.
"They're saying a lot of businesses will probably need to consider the viability of what they're doing.
