Review of the Registered Clubs Industry in NSW - Clubs NSW

13 Removing unnecessary regulatory restrictions on clubs
13.4 Clarify circumstances where contract caterers can serve alcohol on
club premises
The Registered Clubs Act provides that the “the supply of liquor to the club or on the
premises of the club [must occur] under the control of the governing body of the
club.” ClubsNSW argued that this provision is obsolete, and reduces the efficiencies
offered by contracting out catering services in clubs, because the clubs must provide
bar staff to serve alcohol in club restaurants and bistros.
OLGR has advised that, under the Liquor Act 1982 and Registered Clubs Act, the
liquor licensee (ie, the club) must control the supply of liquor on its premise. In
OLGR’s view, this control must be “day-to-day” control, and if a club enters into a
contract for a caterer to serve alcohol on its premises, it may no longer have the
requisite degree of control over the supply of liquor. As such, OLGR acknowledges
that these provisions prevent contract caterers from serving alcohol in clubs (and
hotels). (These provisions were carried over to the Liquor Act 2007 which shall
commence on 1 July 2008.)
IPART notes that under both the Liquor Act 1982 and the new Liquor Act 2007, it is
possible for an independent contractor who is engaged by a registered club to
lawfully supply liquor on club premises as an “agent” of that club, provided that
they have the appropriate authority from the club and that both the club and caterer
conduct themselves in accordance with these Acts.
IPART notes the primary policy objective of the Liquor and Registered Clubs Acts of
minimising harm and encouraging responsible attitudes and practices towards the
sale, supply, service and consumption of alcohol. However, it is also of the view
that, given the increasing use of contracting arrangements for catering services
provided on club premises, OLGR’s current interpretation of “control” to the effect
that only club employees may serve liquor on club premises, may not be a preferable
interpretation.
IPART considers that OLGR should revise this policy and publish enforcement
guidelines that clarify what measures and/or arrangements would, if implemented
by a club, constitute an adequate retention of “control” by a club upon whose
premises a third party caterer serves liquor, for the purposes of the Registered Clubs
Act.
Recommendation
67 That, in order to clarify that contract caterers in clubs are not prohibited from serving
alcohol, OLGR develop and publish enforcement guidelines that clarify what measures
and/or arrangements would, if implemented by a club, constitute an adequate
retention of “control” by a club upon whose premises a third party caterer sells liquor,
for the purposes of s17(1AA)(a)(v) of the Registered Clubs Act. Similar measures should
be developed for hotels to ensure competitive neutrality.
210 IPART Review of the Registered Clubs Industry in NSW