Fears small shops will go under in liquor sale plan

A government proposal to ban stores less than 150 square metres in size from selling alcohol will kill thousands of small stores, a convenience store representative says.

Submissions on the bill closed last week and Wellington dairy owners fear their businesses will be ruined if it is passed.

The bill, sparked by the fatal shooting of South Auckland liquor store owner Navtej Singh in his shop last year, is aimed at limiting the growing number of liquor outlets by specifying that they must be sized 150sqm or more.

A grocery store smaller than 150sqm can apply to sell alcohol, but only if it mainly sells household goods and there is not a dedicated liquor store or large supermarket within 10 kilometres.

However, New Zealand Retail and Mixed Business Association spokesman Neil Patel said the size provision could force about 3600 dairies and a further 1000 liquor stores out of business nationwide.

Last December Mr Patel was punched and his wife Nalini knocked to the ground. They had confronted Luke Faauga, 17, after he repeatedly stole beer and cigarettes from their central Wellington dairy. The harrowing experience made the couple consider selling their store.

However, Mr Patel said the proposed law change would do nothing to stem the tide of alcohol-related violence.

"Youth need to be educated about alcohol and disciplined. This is a growing social problem but the Government are going about it the wrong way this bill will punish the store owners rather than the people committing crime."

Alcohol sales had allowed dairies to survive and grow in the face of the big supermarket chains, but the loss of sales would cripple them, Mr Patel said.

Salvation Army social policy spokesman Campbell Roberts doubted the law change would radically alter the way in which alcohol was bought and consumed, and called for a review of the way it is regulated.

The bill was merely "tinkering" with deep-seated alcohol problems that increased domestic violence and road deaths, costing the country up to $5 billion a year, Mr Roberts said.

An Alcohol Advisory Council spokeswoman said the Government had allowed supermarkets and grocery stores to sell wine since 1989 and beer since 1999. The council had voted against giving dairies the right.

Many dairies had registered themselves as grocery stores to sidestep the law and they tended to sell more alcohol to minors, she said.

- By BRITTON BROUN, Dominion Post