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Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill Member’s Bill As reported from the Law and Order Committee Commentary Recommendation The Law and Order Committee has examined the Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill and recommends that it be passed with the amendments shown.

Division of the bill as introduced The bill that was referred to us was the Sale of Liquor (Youth Alco- hol Harm Reduction) Amendment Bill.
We have divided it to create two separate bills: the Sale of Liquor (Youth Alcohol Harm Reduc- tion) Amendment Bill and the Sale of Liquor (Youth Alcohol Harm Reduction: Purchase Age) Amendment Bill.

The original bill ad- dressed two distinct issues: Clauses 4 to 9 dealt with the minimum legal purchase age and supply of liquor to minors.

Clauses 3 and 10 dealt with restrictions on the broadcast of advertising of liquor.

We have divided the original bill along these lines.
260—2 2 Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill Commentary Review of the regulation of alcohol advertising We note that in January 2006 the Government announced a review, led by the Associate Minister of Health, of the regulation of alco- hol advertising in New Zealand.

The goal of the review is to assess whether the current regulatory framework for alcohol advertising is in harmony with the aims of the Government regarding alcohol pol- icy, and if not, what must be done.
A steering group has been established with members from the Alco- hol Advisory Council of New Zealand, the Ministries of Health, of Justice, of Social Development, and of Youth Development, the Min- istry for Culture and Heritage, the Advertising Standards Authority Incorporated, and the Broadcasting Standards Authority, plus two in- dependent members.

The steering group told us that recommenda- tions are expected to be provided to the Government in late 2006.
The majority has recommended that the bill be passed with the amendments shown.

However, we make that recommendation with the knowledge that the review is in progress.
Original provisions The broadcasting provisions in the original bill sought to amend the Sale of Liquor Act 1989 by restricting the broadcasting of liquor ad- vertising to between 10 pm and midnight (the watershed), establish- ing a find not exceeding $100,000 for a breach of this restriction, and extending the Broadcasting Standard Authority’s jurisdiction so that it alone has jurisdiction to deal with certain specified complaints that are currently dealt with by the Advertising Standards Complaints Board.
The Board deals with these complaints by applying a code of practice relating to the advertising of liquor, which was developed by the Advertising Standards Authority.

Purpose clarified We recommend amending new section 184A, which states the pur- pose of new Part 8A (inserted by clause 10).
The amendments clar- ify the extent of, and the exceptions to, the restriction on television broadcast advertising imposed by new Part 8A and specify the things over which the Broadcasting Standards Authority is, under new Part 8A, to have exclusive jurisdiction.

As introduced, we believe the purpose stated in new section 184 is too broad.
We consider our pro- Commentary Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill 3 posed amendments necessary to set out in more detail the purpose of new Part 8A, and its relationship to the object of the Sale of Liquor Act 1989.

Watershed relates only to television broadcasting We recommend amendments to the title of the bill and to clauses 3 and 10 to clarify that the bill relates only to the television broad- casting of liquor advertisements.
As introduced, the bill would im- plicitly apply to radio and all other kinds of broadcasting, which are currently exempt.

We understand that a high percentage of young people, particularly 10– to 19–year-olds, listen to the radio between 9 pm and midnight, so the bill as drafted might actually increase young people’s exposure to advertising on radio.

We therefore recommend that the watershed should not apply to radio broadcasting or to other broadcasting that is not television broadcasting.
Exceptions to the watershed In clause 10 we recommend inserting new sections 184C(1A), (1B), and (1C) to set out exceptions to the application of the proposed new watershed.

New section 184C(1A) would provide an exception for advertisements in which the liquor, liquor packaging, or liquor outlet depicted is incidental to the advertisement’s purpose.
We also recom- mend inserting an exception for credits for sponsorships or under- writing arrangements in new section 184C(1B), and one for adver- tisements originating outside New Zealand that are transmitted live to international audiences and targeted primarily at audiences out- side New Zealand, in new section 184C(1C).
We consider these ex- ceptions necessary to ensure that incidental references to, or depic- tions of, liquor do not create problems when televising, for example, international sporting events.

Without them, we were concerned that coverage of such events would be necessarily restricted to between 10 pm and midnight, and we do not consider this was the intent of the bill.
These amendments largely align the bill with the current watershed restrictions in principal 4(2) of the Advertising Standards Authority’s Code for Advertising Liquor (1 September 2003).
4 Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill Commentary Exclusive jurisdiction of Broadcasting Standards Authority clarified We recommend omitting section 184C(3) and (5), and substituting new sections 184(3), (3A), and (3B) to make more explicit the Broad- casting Standards Authority’s proposed exclusive jurisdiction under the Broadcasting Act 1989 in respect of complaints and codes relat- ing to restrictions on the television broadcast promotion of liquor.
This would make it clear that the Broadcasting Standards Authority alone has the authority to hear and determine complaints that liquor advertising programmes have been broadcast on television in breach of principles, rules, or standards of advertising or broadcasting prac- tice; and to encourage the development and observance by broad- casters of, and to develop and issue, codes of broadcasting practice in relation to restrictions on the television broadcast promotion of liquor.
We also recommend amending new section 184C(4) to ensure that, in its consideration of any such complaints and codes, the Broadcasting Standards Authority has regard to the purpose of new Part 8A (in- serted by clause 10) of the Sale of Liquor Act 1989.

Minor and technical amendments We recommend a number of minor changes to clarify or to improve the drafting of the bill.

National minority view National is opposed to this bill.
National believes that the Advertis- ing Standards Authority does a commendable job of exercising con- trol and self-regulation over certain specified complaints relating to the broadcasting of liquor advertising.
Further, National has not been convinced that the so-called watershed needs to be limited to between 10 pm and midnight for the television broadcasting of liquor advertis- ing, and certainly agrees that the watershed should not apply to radio broadcasting in accordance with the majority view of the committee.
Commentary Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill 5 Appendix Committee process The Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill was referred to the committee on 8 June 2005.

The closing date for submissions was 21 December 2005.

We received and considered 180 submissions from interested groups and individuals.

We heard 83 submissions, which included hearings of evidence in Wellington, Auckland and Christchurch.
On 30 August 2006 the committee de- cided to divide the bill.

We received advice from the Ministry of Justice and the Ministry of Health.
Committee membership Ron Mark (Chairperson) Chester Borrows Martin Gallagher Hon Luamanuvao Winnie Laban Jill Pettis Simon Power Kate Wilkinson Sale of Liquor (Youth Alcohol Harm Reduction: Television Broadcasting Promotion) Amendment Bill Key to symbols used in reprinted bill As reported from a select committee text inserted by a majority text deleted by a majority Martin Gallagher Sale of Liquor (Youth Alcohol Harm Reduction: Television Broadcasting Promotion) Amendment Bill Member’s Bill Contents 1 2 2A 3 10 Title Commencement Principal Act amended Object of Act · · New Part 8A inserted · · · Part 8A Restriction on broadcasting on television of liquor advertising programmes 184A Purpose of Part 184B Interpretation 184C Liquor advertising programmes broadcast on television 260—2 Page 2 2 2 2 2 2 3 3 1 cl 1 Sale of Liquor (Youth Alcohol Harm Reduction: Television Broadcasting Promotion) Amendment Bill The Parliament of New Zealand enacts as follows: 1 2 Title This Act is the Sale of Liquor (Youth Alcohol Harm Reduc- tion: Television Broadcasting Promotion) Amendment Act 2005.
5 Commencement This Act comes into force on the day after the date on which it receives the Royal assent.

2A Principal Act amended This Act amends the Sale of Liquor Act 1989.

10 3 10 Object of Act Section 4 is amended by omitting “over the sale and supply of liquor” and substituting “over the sale, supply, and television broadcasting promotion of liquor”.
· · · · · New Part 8A inserted The following Part is inserted after Part 8 section 184: “Part 8A “Restriction on broadcasting on television of liquor advertising programmes “184A Purpose of Part “ The purpose of this Part is to reduce the purchase of liquor, particularly among young people, by imposing a restriction on broadcasting liquor advertising programmes.
15 20 “(1) The purpose of this Part is to help to achieve the aim (specified in section 4(1)) of contributing to the reduction of liquor abuse 25 (particularly by and among young people), so far as that can be achieved by legislative means.
“(2) To that end, this Part— “(a) imposes a restriction on the broadcasting on television of liquor advertising programmes (but does not affect 30 2 Sale of Liquor (Youth Alcohol Harm Reduction: Television Broadcasting Promotion) Amendment Bill cl 10 “(b) those in which liquor is referred to, or depicted, only incidentally, or the inclusion in programmes broadcast on television of credits, intended to promote liquor, in respect of sponsorships or underwriting arrangements); and ensures (without limiting the jurisdiction or functions under any enactment of any court or tribunal or any other person or body) that the Broadcasting Standards Authority established by section 20 of the Broadcasting Act 1989 is the only person or body that has jurisdiction 10 to do certain specified things.
5 “(3) Those specified things are— “(a) “(b) to hear and determine complaints that liquor advertis- ing programmes have been broadcast on television in breach of principles, rules, or standards of advertising 15 or broadcasting practice; and to encourage the development and observance by broadcasters of, and to develop and issue, codes of broadcasting practice in relation to restrictions on the television broadcasting promotion of liquor.
20 “184B Interpretation In this Part, the terms advertising programme, broadcaster, and broadcasting, and liquor have the meanings given to them by section 2 of the Broadcasting Act 1989.

“184C Broadcast Liquor advertising programmes broadcast 25 on television “(1) No broadcaster may broadcast on television before 10 pm on any day, or any and no person may arrange for the broadcast on television before 10 pm on any day of, any liquor advertising programme in New Zealand before 10pm on any day.
“(1A) Subsection (1) does not apply to an advertising programme broadcast on television in which reference to, or the depiction of, liquor, liquor packaging, or a liquor outlet, or all of them, is incidental to that programme’s purpose.
30 “(1B) Subsection (1) does not apply to the inclusion in any pro- 35 gramme broadcast on television of a credit— 3 cl 10 Sale of Liquor (Youth Alcohol Harm Reduction: Television Broadcasting Promotion) Amendment Bill “(a) “(b) “(c) in respect of a sponsorship or underwriting arrangement entered into in relation to that programme; and intended to promote liquor; and for which payment is made, whether in money or other- wise.
5 “(1C) Subsection (1) does not apply to the broadcast on television of any liquor advertising programme if the signal for that pro- gramme— “(a) “(b) originates outside New Zealand; and is produced and transmitted simultaneously to both 10 New Zealand audiences and audiences outside New Zealand; and is targeted primarily at audiences outside New Zealand.
“(2) Every person commits an offence and is liable on summary “(c) conviction to a fine not exceeding $100,000 who fails to com- 15 ply with subsection (1).

20 “(3) Despite anything to the contrary in any other Act, the Broad- casting Standards Authority established by the Broadcasting Act 1989 must have sole jurisdiction over all matters that may arise in relation to any liquor advertising programme.
“(3) The Broadcasting Standards Authority established by section 20 of the Broadcasting Act 1989 is the only person or body that has jurisdiction— “(a) to hear and determine complaints that liquor advertis- ing programmes have been broadcast on television in 25 breach of principles, rules, or standards of advertising or broadcasting practice; and to encourage the development and observance by broadcasters of, and to develop and issue, codes of broadcasting practice in relation to restrictions on the 30 television broadcasting promotion of liquor.
“(3A) In particular, no recognition by a broadcaster or advertiser of the jurisdiction of the Advertising Standards Complaints Board in relation to any complaints of the kind referred to in subsection (3) continues, or may be renewed, or may be 35 replaced by recognition of the jurisdiction of any other sim- ilar person or body, after the commencement of the Sale of Liquor (Youth Alcohol Harm Reduction: Television Broad- casting Promotion) Amendment Act 2005.
“(b) 4 Sale of Liquor (Youth Alcohol Harm Reduction: Television Broadcasting Promotion) Amendment Bill “(3B) Subsection (3) applies despite anything to the contrary in any other enactment, but does not limit or affect the jurisdic- tion or functions under any enactment of any court or tribunal or any other person or body (for example, the Alcohol Advi- sory Council of New Zealand).
In its consideration of any matter complaints or codes of the kinds referred to in subsection (3), the Broadcasting Stand- ards Authority must exercise its relevant jurisdiction under the Broadcasting Act 1989, but must also have regard to section 4 of this Act the purpose of this Part.
“(4) “(5) For the avoidance of doubt the self-regulating industry body known as the Advertising Standards Authority will no longer have any jurisdiction over broadcast liquor advertising.” 5 10 Legislative history Introduction (Bill 260–1) First reading and referral to Law and Order Committee 4 May 2005 8 June 2005 12 Published under the authority of the House of Representatives—2005 Wellington, New Zealand: 5