Trusts hit back at bid to get rid of them

Chris Ramsay.
Chris Ramsay.
An attempt to get rid of licensing trust monopolies in the South has had cold water poured on it by the trusts themselves.

Act New Zealand MP Simon Court has a member’s Bill that if passed would abolish all alcohol licensing trusts. The trusts are in West Auckland, Gore and Invercargill.

Mr Court said he wanted to get rid of the trusts as they were monopolies, had too many rules and relied totally on poker machines.

But his views were rejected by both the ILT and MLT yesterday.

ILT chief executive Chris Ramsay said it was pretty clear the MP was not based in the South as he believed none of his comments were accurate in relation to Invercargill or Gore.

"I don’t think he has any understanding at all of licensing trusts. I think he’s someone who’s decided he wants to have different bars to drink in."

There was already a mechanism in place if the public wanted licensing trust privileges removed — there would need to be a petition signed by at least 15% of people who lived in the area to trigger a vote.

Mr Ramsay said a petition was launched in West Auckland about two years ago but it did not get the required numbers.

"So there’s a fair argument to say that the majority of his constituents don’t want change."

He rejected the claim all the trust’s money came from pokies.

He said $3.5million came from the ILT operating side last year alone, and then the balance of the $6m pre-tax made went back in reinvestment into its own "bricks and mortar".

Mr Ramsay said since Mr Court’s idea was floated, he had been overwhelmed with support from the community and highlighted that in its last financial year, the trust donated $9m to the community.

"The standard of our business is the quality of the financial outcomes and the quality of the social outcomes."

MLT general manager Mark Paterson said it was a localised Auckland agenda to open up Waitakere and Portage Licensing Trusts in Auckland after a failed attempt in 2022.

Mr Court was clearly misguided on various points when referring to licensing trust law and specifically southern licensing trusts such as the ILT and MLT.

The Sale & Supply of Alcohol Act 2012 already allowed for private restaurants to open in closed licensing trust areas and had done so for many years. There were examples in Invercargill and Gore. Amigos opened a licensed restaurant in Gore two weeks ago and up until a couple of years ago a restaurant called Rustic had a presence in Gore.

On all other points they challenged Mr Court, Mr Paterson said.

The referendum option should remain with the shareholders of the trusts in each area — the owners and benefactors of the trust model.

"They voted for the licensing trust model in 1955 and they reiterated their stance in 2003 when a referendum was held in the MLT area [and] won convincingly for the status quo," Mr Paterson said.

"The powers that be in Wellington have far more to worry about than a perceived issue with four successful licensing trusts that are well run and have collectively returned well over $300m to their shareholders."