LAP Submissions Hearing Kate Porter and Karl Wareham 28 March 2014
In Hamilton • 7 Countdown stores • Proud to be part of the community for many years • Large employer and contributor to local economy • Continuing to invest in Hamilton • More jobs, more choice + competition • All stores currently licensed 7am-11pm (close at either 9pm or 10pm)
We support the new Act
Our customers’ alcohol purchasing • 18% of customers purchase alcohol (beer/ wine) • 16% of customers purchase groceries at the same time as they buy beer/ wine • 1.7% of customers purchase beer/ wine only • 0.3% of customers purchase beer/ wine at the same time as they buy snacks and/ or confectionery
Hamilton Draft LAP • Confirms that 18-24 year olds are the key age group suffering alcohol-related harm in the city • Proposes a 9am – 10pm off-licence restriction which primarily targets supermarkets (most off- licences not currently open before 9am; bars able to open at 7am in Draft LAP) • Concerned about prevalence of off-licences in low socio-economic areas when our supermarkets do not gather in these areas • Restricts location of supermarkets to business zone when this is already managed by the District Plan
Young adult shopping behaviour (18-24 yr olds) • In the average store nationally, between 7am and 9am: • There are less than 2 beer or wine sales to young adults per store • Young adults are the least likely age-group to buy alcohol from supermarkets during these hours • Between 9pm and 11pm, Friday and Saturday nights: • Less than 15 beer and wine sales to young adults • Supermarkets account for 3% of young adults’ total spending on alcohol during these hours
Alcohol sales trends to young adults Source: BNZ Marketview dataset of national eftpos and credit card transactions broken down by age; cross- referenced with NZ Statistics and Progressive Enterprises’ point of sale data
Who are our customers in Hamilton? • 7am to 9am • 152,000 shoppers per year • 0.4% buying wine or beer only • 88% are 25 to 70+ years old • Of these, 9% buy beer or wine • Of these, 95% buy groceries at the same time • Per week, there are 6 customers aged under 25 buying beer or wine, or just under 1 per store • Of these, 5 out of the 6 buy groceries at the same time
Impact of LAP 9am restriction? • Earlybird, mainstream grocery shoppers cannot choose to do a full shop • Mums, commuters, rural, hospitality buyers, shift workers • They will likely shop differently, which could impact supermarket staffing and hours • Broad-brush approach and broad-brush impact rather than targeting problems • Current national hours are a maximum only – they are not a right for any or every licensee • Community, Police and Health have greater input; more stringent criteria • Decisions can be made on merit as they are today, weighing up the specifics of each application
Impact of LAP location restrictions? • Restricts supermarkets to Business Zones • Restricts supermarkets in low socio-economic areas • Cumulative impact of these controls will have unintended consequences • Supermarkets won’t be located where the community needs them • Very few suitable sites for supermarkets the Draft LAP disproportionately affects supermarkets • Our supermarkets don’t concentrate in low -socio areas our review of NZ and Hamilton (2014) establishes this clearly • Supermarket location is tightly controlled by the District Plan (and Proposed District Plan) and this is the best method • The Draft LAP is not consistent with the PDP eg Rototuna is not identified as a new business location
Impact of LAP location restrictions? • Restricts supermarkets near schools and early childcare facilities Supermarkets do not have external advertising of • alcohol We don’t receive complaints about children walking • past supermarkets Proximity to supermarkets hasn’t historically raised the • same community concerns as proximity to other types of off- and on-licences
In summary • What harm is the Council trying to minimise by a 9am restriction on supermarkets? • The LAP impacts a substantial number of mainstream Hamilton shoppers, most of whom are buying a full shop of groceries • Risks potential investment and development of supermarkets in the areas where they are needed • Connect policy to Hamilton’s growth and city planning + consider wider impacts on jobs and investment • Let the Act change behaviour and assess impact before introducing deeper restrictions • Be tougher on irresponsible applicants; assess on merit
Thank you for your time
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