PDF Version

 

 

NEWS RELEASE

 

For Immediate Release

2002PSSG0014-000531

March 15, 2002

Ministry of Public Safety and Solicitor General

Ministry of Competition, Science and Enterprise

 

LIQUOR REFORMS TO IMPROVE PUBLIC SAFETY

AND CONSUMER CHOICE

 


VICTORIA – The government is introducing a liquor reform strategy to improve public safety, consumer choice and customer service, Solicitor General Rich Coleman and Minister of Competition, Science and Enterprise Rick Thorpe announced today.

 

            The four-part strategy approved in open cabinet today will streamline the number of licensing categories for liquor-serving establishments to two; allow the sale of spirits in cold beer and wine stores; lift the cap on the number of cold beer and wine stores; and amend rural agency store provisions to increase liquor retail choice in small communities.

 

            "Our priority in reforming liquor licensing is to increase public safety," Coleman said. "At present, liquor control and licensing branch officials have to spend their time enforcing a complex and archaic system of 19 different licence classes or sub-classes. As a result, resources are diverted away from addressing important public safety concerns like illegal liquor sales, overcrowding, over-consumption and sales to minors."             

 

The new licence categories will be "food primary," for businesses like cafes and restaurants; and "liquor primary," for businesses like bars, pubs and lounges. As well, establishments will be eligible to serve alcohol until 4 a.m., subject to local government approval and the consent of the liquor control and licensing branch. Regulations will be developed to implement the changes and strengthen the role of local governments in licensing decisions.             

 

"Branch officials will be able to make public safety their priority," Coleman said. "These changes will also benefit small businesses and the hospitality industry by creating a more sensible, fair and workable licensing system."             

 

Cold beer and wine stores will be able to sell spirits effective April 2 and will be able to apply to increase their maximum floor space from 1,000 to 2,000 square feet (90 to 180 square metres) to provide room for new products.             

 

In addition, cabinet gave approval in principle to the future lifting of the moratorium on new beer and wine stores in B.C., subject to community and local government input. At present, there are 290 cold beer and wine stores, and no new applications have been permitted since 1992, despite growth in population, customer demand, and new tourism opportunities.             

 

"These changes will provide more consumer choice for beverage alcohol purchases," Coleman said. "Few communities have seven-day-a-week access to a full selection of beverage alcohol. We want customers and communities across B.C. to have the same choices."      

 

The government is streamlining the liquor distribution branch's selection process for rural agency stores by eliminating distance restrictions that prevent stores being located within 20 kilometres of another liquor retail outlet.             

 

Rural agency stores will be permitted in rural communities with populations larger than 300, as well as tourism destination resorts like ski hills. As with cold beer and wine stores, community input will continue to be required for applications for new rural agency stores.              

 

"Distance restrictions have limited customer choice and access to liquor products in smaller communities," Thorpe said. "Our changes will eliminate outdated and unnecessary regulations, and create new opportunities for rural communities and tourist destinations."

 

-30-

 

 

Backgrounder: Government liquor reform strategy

 

The government is reforming liquor laws to improve public safety, consumer choice and customer service. Changes are being made in four areas:

 

1. Licences

The licence system is being streamlined to place a new emphasis on public safety.  Liquor control and licensing branch officials currently spend their time enforcing an archaic set of complicated regulations and rules.

 

Under the new system, branch officials will be able to spend more time monitoring and enforcing public safety issues like underage drinking, public intoxication, overcrowding and illegal liquor. Shifting liquor control and licensing resources to public safety priorities is estimated to be equivalent to hiring 12 more inspectors.

 

A new regulatory regime will be developed to implement the licence categories. This is expected to reduce the current 5,866 liquor requirements and licences by about one quarter.

 

Current System

Right now, seven categories of liquor licences cover 19 kinds of venues that sell liquor by the glass. Not only are there separate rules for operating hours, entertainment and minors for each category, there are often special rules for each kind of venue. These rules cover everything from access and structural concerns to seating capacity, serving requirements and hours of operation.

 

1. The "A" licence category is the broadest, covering nine venue classes: hotels, resorts, clubs, cultural centres, universities, recreation centres, military messes, airports and large passenger carriers like trains and ships.

 

2. "B" licences cover food service venues, specifically dining lounges and dining rooms. Fast food, take out, street vendors and youth-oriented venues are not permitted to get licences.

 

3. "C" licences apply only to cabarets, that is, clubs with dance floors and seating for 100 or more people.

 

4. "D" licences cover neighbourhood pubs.

 

5. The "E" licence category covers large public venues and is limited to times when events are occurring. The three venue classes include convention centres, stadiums and concert halls.

 

6. "F" licences cover marine pubs with wharfage requirements and other services - such as laundries, food and showers - that must be provided by the licence holder.

 

7. "I" licences cover restoration pubs, which are establishments that were previously licensed hotels.  ("G" and "H" licenses do not apply to venues that sell liquor by the glass.) 

 

New System

Under the new system, there will be two licence categories: "liquor primary" and "food primary." Every kind of drink-serving venue is covered within these two categories.

 

1. Food primary covers venues like restaurants, dining rooms and cafes, where food service is the main business. These venues can only serve liquor with food. Convenience venues like takeout, fast food, street vendors, and most food courts, along with youth-orientated restaurants, will still not be able to get a liquor licence.  

 

-General operating conditions: Liquor service may extend to 4 a.m. Restaurants may stay open the remainder of the 24 hours without liquor service.

 

-Community input: Local governments will have input on late night hours and types of entertainment involving public participation activities like dining and dancing. Restaurants may apply for dual licensing with local government support and approval from the province. This dual licensing would allow businesses to shift from food primary to liquor primary during later hours in response to specific neighbourhood needs. 

 

2. Liquor primary covers bars, pubs, clubs and other venues where the main business is selling liquor. Any business that is primarily in the hospitality, entertainment, or beverage business and that is not prohibited by regulations, such as youth-focused video arcades, will be eligible to apply for a liquor licence. Clubs are maintained as the only sub-category within the liquor primary class and they retain both their special privileges and restrictions. All businesses will have more flexibility in the types of entertainment venues they can offer.

 

-General operating conditions: Venues can apply for any hours of service between 9 and 4 a.m. Patrons must leave the establishment 30 to 60 minutes after liquor service ends.

 

-Community input: Local government can restrict capacity, hours of operation, entertainment, and type of facility. Capacity will be determined by local government and the province after applicants demonstrate community need and support for the requested capacity. Venue size will be determined by local building codes.  Liquor primary venues can also apply for a dual licence.

 

Licensees will operate under existing rules until new regulations and policies are in place later this year.

 

2. Spirits in cold beer and wine stores

 

Cold beer and wine stores will be allowed to sell spirits beginning April 2 to expand consumer choice, improve customer service and benefit communities.

 

British Columbia's 290 cold beer and wine stores will also be allowed apply to increase their maximum floor space from 1,000 square feet to 2,000 square feet to give them room to sell spirits.

 

3. Moratorium on cold beer and wine stores

 

At present, the number of cold beer and wine stores has been capped at 290. No new applications have been permitted since 1992, despite growing communities, new tourism opportunities and greater customer demand.

 

Cabinet has been asked to lift this moratorium in principle. This will not mean an immediate increase. Any new stores must hold a liquor primary licence, go through an application process and be considered by the liquor control and licensing branch and local governments on a case-by-case basis.

 

The minister of public safety will prepare a new regulation for consideration by cabinet later this spring to oversee the process for new applications.

 

Regulations setting out details and an effective date must be approved by cabinet before expressions of interest and applications are accepted.

 

4. Rural agency stores

 

At present, a rural agency store cannot be located within 20 kilometres of any other liquor retail outlet - including liquor distribution branch stores, cold beer and wine stores, or other rural agency stores. This rule has penalized smaller communities and tourist destination towns.

 

This rule will be eliminated to facilitate new applications for rural agency outlets, increase consumer choice and customer service, and provide new opportunities for small businesses.

 

Rural agency stores will be allowed in two major categories:

 

-Rural communities larger than 300

 

-Tourism destination resorts like ski hills

 

Applications will be approved by the liquor distribution branch, rather than the minister responsible for the branch, to ensure greater fairness and consistency in decisions. Local input will continue to be required in these application decisions.

 

The target date for the new rules to be in place is May 1. New applications will be accepted after that date.

 

The rural agency store program began in 1975 and is an extension of the liquor distribution branch's government liquor store system. There are currently 144 rural agency stores in communities across B.C. Agreements with existing rural agency stores will continue.

-30-     


 

  

Visit the province's Web site at http://www.gov.bc.ca/ for online information and services.