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Supermarket giants Foodstuffs and Woolworths have lost their bid to extend alcohol sales hours in Auckland and must pay Auckland Council $35,000 in costs, the Supreme Court has ruled.
Eight years ago, the council approved its own Local Alcohol Policy (LAP), but it never came into effect. Instead, it has been stymied by appeals and court cases from vested interests like supermarkets.
The policy looked at influencing the locations and number of alcohol shops and setting 9pm closing times, instead of 11pm, in an effort to reduce alcohol-related harm.
A Court of Appeal decision in 2021 went in the council’s favour. The two companies then appealed to the Supreme Court.
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The supermarkets argued they should be allowed to sell alcohol until 11pm.
The Supreme Court decision was released on Friday.
The justices agreed with the Court of Appeal that a restriction on alcohol sales hours could be justified, on the basis it was likely to reduce alcohol-related harm.
The court also found the local licensing authority made no error of law in concluding that a 9pm closing time was not unreasonable.
The stoush has cost the council, and Auckland ratepayers, more than $1 million in legal fees.
Alcohol Healthwatch
Foodstuffs and Woolworths wanted to increase the hours they could sell alcohol. (File photo)
Auckland Council regulatory and safety committee chair Josephine Bartley welcomed the decision, saying eight years had been a long time to wait to get on with implementing the LAP.
“At the heart of the council’s policy approach has been the reduction of alcohol harm in our communities.
“While the changes won’t happen overnight, we look forward to seeing alcohol suppliers reflect on the ways the policy will allow them to supply alcohol responsibly and where they can do their bit to mitigate the worst impacts of alcohol on their communities,” Bartley said.
In 2022, Justice Minister Kiritapu Allan announced the Government would be removing the ability for alcohol companies and retailers to challenge a community’s local alcohol policies.
Alcohol is New Zealand’s most harmful drug, with the cost of harm in 2020 estimated at $7.85 billion.
More than half – 59% – of people who seek addiction support list alcohol as their primary substance of abuse.
A Countdown spokesperson said the company was reviewing the judgment and looked forward to working constructively with Auckland Council on its local alcohol policy.
Foodstuffs has also been approached for comment.
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