Thursday, 1 December 2005


Media Statement


Liquor Consultation Bill to Remove Separation of Powers Doctrine

 

(Editors note: The following may be attributed as quotes to Randwick Greens Councillor Murray Matson)

 

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The NSW Liquor Bill 2005 currently on exhibition (http://www.dgr.nsw.gov.au/) as a consultation bill proposes shifting the power to grant Liquor Licences away from the Magistrates of the Liquor Licensing Court to a Government bureaucrat, the Director of the Department of Gaming and Racing.

This will be a radical break with the philosophy underpinning the current Liquor Act 1982 and (in my opinion) will weaken the credibility of our states administration of the liquor and hospitality industries.

The current Act reflects an Australian understanding of the separation-of-powers philosophy i.e. that a combined Legislative/Executive (consisting of MPs and bureaucrats) arm of state power should not carry out tasks belonging to the Judiciary arm. The Consultation Bill proposes to remove this distinction.

In other countries (i.e. America) the executive, legislative and judicial are separated and have the power to counter balance each other.

The separation is not so distinct in NSW where the Legislative and the Executive is a blended affair with the top executive officer (the Premier) being also the most powerful elected legislator (i.e. as a member of parliament). We thus have an overlapping interface of the executive and the legislative formed by Government Ministers. It is still assumed though that the Judiciary should be separate.

These MPs often benefit from corporate donations.

 

“Hotels in NSW have donated more than $2.2 million over the six years since 1998 to the NSW Labor Party …” (Greens MP Lee Rhiannon, November 29, 2005, http://www.lee.greens.org.au/media/Media05/nov-dec/s051129_pubdonations.htm).

Undoubtedly the drafters of the current NSW Act foresaw this potentially dangerous financial relationship and looked to impose a separation-of-powers solution that gave the task of handing out liquor licenses to impartial magistrates sitting as the Liquor Licensing Court.

The current Act thus clearly saw the granting-of -licences as being a judicial task to be kept away from the Legislative and Executive arms. This new consultation bill now wants to make it an executive job by transferring it to the Director of the Department of Gaming and Racing.

And that means that the industry will have a connection to this allocation task via the interface between the Executive and the elected Legislative formed by Government MPs who accept donations from the industry. This link could potentially turn into a dangerous influence on legislators who are also the executives responsible for controlling the activities of an industry that helps get them elected to office.

If the Government wishes to hobble the Liquor Licensing Court, then it also has to meddle with the Liquor Administration Board because magistrates of the Court make up the Board. The consultation Act proposes the abolition of the Board and the transference of its powers to the Director.

This has a bearing on my local scene of Randwick, Coogee, Maroubra and Clovelly. In the past, groups of concerned citizens have used section 104 of the Liquor Act to take their complaints about particular pubs (including the Coogee Bay) directly to the Judiciary on the Liquor Administration Board.

If the Consultation Bill takes effect, future community groups will have to look for relief from the Director, a Government Officer accountable to a Government MP elected with Liquor industry donations.

Anyone who lives near a pub or club should oppose those sections of the Consultation Bill proposing the abolition of the Liquor Administration Board and the crippling of the Liquor Licensing Court.

The only alternative would be for the Government and the opposition to get serious about banning donations from the liquor and hospitality industries to politicians.

This is highly unlikely to occur although I will be asking the multi-talented Michael Daley (my fellow Councillor, new Labor MP for Maroubra and President of the Randwick Rugby Club) to make it a personal priority.

Randwick City Councillor Murray Matson (The Greens) 0409-984-587