Recently we were contacted by Naomi Fallon of The Canberra Chronicle newspaper asking us to particpate in an upcoming article on the ACT's Governments' new Liquor Licensing legislation and the effect the new laws are having on small pubs.
While we believe the fee increase has had a positive flow on effect due to the increased police presence around civic (making it safer for our clients too) we disagree with the way in which the laws have been targetted in a catch all fashion.
We put our case that we think the new fees are grossly unfair as they do not reflect any means-tested criteria such as that used by housing rates or car registration, unless, and only unless, one is willing to accept a downgrade to a capacity of 80 and close the doors at 12 midnight - in which case the new fees would be a small increase to what they were at last year.
As the Phoenix's capacity stands at 94 persons we found ourselves on the wrong side of the fence as we are placed in the same pricing category as larger venues in the 500, 550, 650+ persons capacity.
Currently our new Liquor licensing fee is $13,660 per annum (up from $3500 this time last year) as the Pheonix has a loading of 94 persons this equates to a fee of $129 per unit of capacity! Looking at say venues with a much higher revenue stream, for example, a venue with a 650 capacity they pay $21 per unit!
Finding ourselves looking down the barrel of a gun with a demand for a four-fold incease in our annual liquor fees we have had to change our business model or face the inevitable small target turtle-mode as a 80 persons venue with an unacceptably early closing time, or, simply call it a day.
So we are trying something new as The Phoenix feathers have been dampened. Breaking with an 18 year tradition of not charging for gigs we are trialing paid entry at the door for certain gigs and as we now have to deal in high volume we have to put on security which is an obvious added high overhead (roughly an extra $60,000 per year).
Stay tuned as we keep you updated on how the year pans out for your local pub in civic, we plan to be here next year and aren't by any means done yet - indeed we have only really begun the fight back.
Impact of new Liquor Licensing Laws on live music venues in Canberra by Gavin Findlay on Saturday, March 26, 2011 at 11:57am To Simon Corbell, ACT Attorney General
Dear Mr Corbell
I read with interest your recent announcement about the success of new ACT Liquor Licensing laws in reducing antisocial behaviour, especially in Civic.
However, as a long time professional musician and event producer, I am seriously concerned that the settings for the laws may have a terrible impact on on Civic's most loved and longest running original live music venue, The Phoenix. I have been informed that the new new Liqour licensing fee is $13,660 per annum (up from $3500 this time last year) as the Phoenix has a loading of 94 persons, which equates to a fee of $129 per unit of capacity. This is much higher than the large venues, for example, a venue with a 650 capacity would pay $21 per unit! The Phoenix owners have expressed strong concerns that the impact of the new laws, including this fee and the expense required for security seriously jeopardises their continue operation as a live original music venue.
I understand that there is a lower fee for venues with a capacity of 80, which must close at midnight. This is not suitable for a venue trying to make an adequate turnover for the extra expense and equipment required to operate a live music venue. As the Phoenix's capacity stands at 94 persons it is placed in the same category as larger venues in the 500+ persons capacity. Can you please explain to Canberra music community why these laws do not include some kind of means-test criteria such as that used by housing rates or car registration?
You would be well aware that inflexible ACT noise laws have in the past brought undone two of Canberra's premiere live music venues, The Gypsy Bar and Toast. It took years for the ACT Government to respond and conduct an enquiry into this issue. I urge you to give this matter urgent consideration and change these laws before we lose one of Canberra's treasures.
Thank you for including us in your email on the new liquor licensing fees. Caroline has asked me to respond to your email on her behalf. Like you, I love the Phoenix and I would be very sorry to see anything happen to it. I used to go and see friends from the school of music jazz program play there and I agree that it is a Canberra treasure that I would like to see protected.
Although it impacts on an arts venue, I forwarded your message on to Shane Rattenbury’s office as they have the attorney general’s/law portfolio and they are taking the lead on the issue of licensing fees. This is what Shane’s legal advisor sent in response to your email:
Last year, the ACT Greens passed a motion requiring the Government to conduct a review of the new fees. We are aware that licensees will be written to by the Attorney, as a part of the review, asking for their comment on the new fees. As professional musician I would suggest that you write again to Mr Corbell and ask that he consider your correspondence a formal submission to the review. It would be great if you could copy Shane into your follow up email to Mr Corbell. His email address is
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Shane said at the time the new fees were announced that the Greens support risk based licensing (which is the model adopted by Government for the new fees) but that we think the Government could have done a better job in how they calculated the fees. We hope the inquiry will help to get a better fee calculation model but the first step is to get all interested people to write to the Attorney setting out their views.
Cheers,
Ashlin Flanagan Office of Caroline Le Couteur ACT Greens Member for Molonglo ACT Greens Spokesperson for Planning, Territory and Municipal Services, Business and Economic Development, Land and Property Services, Arts and Heritage Phone: 6205 0051 GPO Box 1020 Canberra ACT 2601
The Government is undertaking a comprehensive review of the new liquor fees which took effect on 1 December 2010.
The Attorney General, Mr Simon Corbell MLA, will table the Review’s Report in the Legislative Assembly no later than 1 October 2011.
The terms of reference for the review include:
an analysis of the effect the 2010 fees determination has had on the number of licensed venues operating in the ACT and trading hours they adopt; an evaluation of the impact of continuing to use $100,000 as the threshold test for the “annual liquor purchase”, noting it has not been reviewed for at least 10 years; and an analysis of the impacts of expanding the 2010 fees determination to take account of the full list of seven risk factors listed in section 229(2)(b) of the Liquor Act 2010”. an analysis of the current fee structure for liquor permits. For more information about the Liquor Act 2010 and its implementation visit the Office of Regulatory Services website.
Anyone wishing to comment on the review can lodge their submission via this website.
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We'll keep you updated of any further developments.
