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The Dunedin district licensing committee is set to hear arguments later this month about whether the Cumberland St Super Liquor, situated next to a BP service station, should have a licence after its application was opposed.
Council liquor licensing co-ordinator Kevin Mechen said the liquor licence was being opposed because a recent ruling made it clear that under the new Sale and Supply of Alcohol Act 2012 liquor stores were not allowed on petrol station forecourts.
The ruling from the Alcohol Regulatory and Licensing Authority (Arla) stripped the licence of a liquor store next to a service station in the North Island, which was "almost identical" to the Cumberland St store.
"Because they [forecourts] are part of a gas station building, Arla have now determined that the forecourt is part of the premises, so you can’t have an off-licence connected to a gas station.
"Under the old legislation the way it was set up was fine, but there has been a new determination come out in the last few months," he said.
The legislation prohibited the sale of alcohol from anywhere that sold petrol.
Mr Mechen said as far as he was aware the opposition to the licence had nothing to do with the Arla decision to suspend the licence of the Malcolm St Super Liquor, also owned by Patricia and Kenneth McCarthy, for selling to an underage boy.
Mrs McCarthy said there had been no previous issues with the liquor store being next to the petrol station and the owner of the property was supportive of it continuing to operate at the site.