Addressing the harmful use of alcohol - WHO Western Pacific Region

Addressing the harmful use of alcohol : A guide to developing effective alcohol legislation
licence. Some jurisdictions also licence wholesale distributors, which may include a right for
small wine or beer producers to provide samples or sell to the public.
There is evidence from a range of industries that a licensing system can be an effective
means of regulating business activities in the public interest, provided it is well monitored and
enforced. Legislation on the sale of alcohol could simply dictate the law and establish a set of
offences to be enforced by police. A licensing system allows greater responsiveness on the
detail of regulating business activities and also more responsive enforcement. Responsive
regulation through a licensing system can increase compliance with the law (Ayres and
Braithwaite 1992).
Legislation regulating the sale of alcohol typically establishes a licensing authority and
processes, sets criteria and conditions for different outlets, and lists prosecutable offences
and other grounds for the suspension or cancellation of the licence. Offences include selling
alcohol without a licence, selling alcohol outside permitted hours of trading, and selling to
minors or to already intoxicated customers. The same legislation makes it an offence for
minors to purchase alcohol or for other adults to supply alcohol to them (see section 6). The
act will also regulate hours and days of trading, either by law for all licensed premises or as
a condition of each licence. Recent acts have included prohibited irresponsible promotions
by licensees and this may also be the best place for other regulation of alcohol advertising
marketing.
Licensing is a mechanism for policy implementation for the purpose of meeting public
health objectives and for encouraging and ensuring the responsible sale of alcohol. Licence
application processes enable licensees to be vetted and educated about the alcohol laws.
The privilege of a licence enables legislation to go beyond prohibiting specific offences to
requiring good management practices, such as training, age verification, providing food and
non-alcoholic drinks, noise reduction, etc. Licensing provides regulators with both a carrot
and a stick (Ayres and Braithwaite 1992). Suspension or cancellation of a business’s liquor
licence has a far larger financial impact than prosecution and a fine for serving a minor.
Licensing can also be used to provide flexibility, particularly at the local level, to impose
conditions on alcohol sales activities as a means to address local concerns. For example,
a license may be granted on condition that noise abatement modifications are made in the
design or with early closing hours because of the particular location involved.
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