Replies to LegCo questions
LCQ1: Liquor licensing
Following is a question by the Hon Tommy Cheung Yu-yan and a reply by the
Secretary for Food and Health, Dr York Chow, in the Legislative Council today
(March 10):
Question:
The Efficiency Unit (EU) completed the review of liquor licensing back in 2006
and submitted proposals for legislative amendments to the then Health, Welfare
and Food Bureau, with a view to creating a more business-friendly environment
for the trade. The proposals include allowing a company or multiple natural
persons to hold a liquor licence, so as to avoid the situation of a licensee
going on vacation, his departure or death rendering the premises concerned being
in breach of the licence conditions or having to cease the sale of liquor and
suffer business losses. Some members of the trade have relayed to me that the
trade is gravely disappointed as it has been three years since EU put forward
its proposals, but the authorities have so far not introduced the relevant
proposed legislative amendments. In this connection, will the Government inform
this Council:
(a) why it has still not introduced the bill concerned to this Council to date;
whether it has set a legislative timetable in this regard; if so, of the
details; if not, the reasons for that;
(b) given that the trade has requested the authorities for years to allow a
company or multiple natural persons to hold a liquor licence, and the
authorities only responded at a meeting of the Panel on Food Safety and
Environmental Hygiene of this Council in 2008 that they would make reference to
the Karaoke Establishment Ordinance and study the proposals, of the progress and
outcome of the study concerned; whether the authorities have consulted the trade
on the proposed legislative amendments and of the outcome of such consultation;
if the outcome of the study is not yet available, the reasons for that; and
(c) of the number of applications lodged with the Liquor Licensing Board by
liquor licensees each year from 2006 to 2009 to authorise other persons to
temporarily manage the licensed premises concerned, and the average time taken
to complete the processing of such applications?
Reply:
President,
The Efficiency Unit (EU) began conducting a review on liquor licensing in 2006,
with the objective to rationalising the prevailing regime and procedures for
liquor licensing and shortening the overall processing time required in order to
provide a more business friendly environment for the trade. In October 2007, the
EU completed the review and submitted its report to the Food Business Task Force
under the Business Facilitation Advisory Committee with a list of
recommendations. The Food and Health Bureau and the Food and Environmental
Hygiene Department have since implemented a series of short to medium term
measures in the light of the recommendations of the review report which include
streamlining the application processes and allowing e-processing of licence
applications. With respect to the legislative amendment recommendations put
forth in the review, including that regarding the review of the appropriate
party for holding a liquor licence, which is of the concern to the trade, the
Bureau has also considered the proposal in association with other relevant
bureaux and executive departments.
Under the Dutiable Commodities (Liquor) Regulations (Cap. 109B), before granting
a liquor licence, the Liquor Licensing Board (LLB) should consider the following
three criteria:
(1) the applicant is a fit and proper person to hold the licence;
(2) the premises to which the application relates are suitable for selling or
supplying intoxicating liquor; and
(3) in all the circumstances the grant of the licence is not contrary to the
public interest.
Under the existing legislation, a liquor licence will only be granted to a
natural person, which means that it could only be granted to a person but not to
a body corporate or a company formed by partnership. The objective of this
requirement is to have all premises with liquor licences to appoint a natural
person who can be held criminally liable for any breaches of the law or
licensing conditions in respect of the premises. The trade is concerned that
when there is a change in the employee, the grant of a liquor licence to a
natural person may cause the premises to suspend operation temporarily because
there is no licence holder. In this regard, the EU recommended in its report
that the Government should consider amending the legislation to allow a
"company" or multiple natural persons to hold a liquor licence.
When considering the above recommendation, we have been adhering to the
principle that all liquor licensed premises should have a designated person who
can be held criminally liable for any breaches of the law or licensing
conditions in respect of the premises, and that the Administration's existing
procedures and strength of enforcement will not be affected. We note that the
Karaoke Establishments Ordinance (Cap. 573) has certain requirements on licence
applicant. The Ordinance stipulates that the person making an application for a
permit or licence is a person who is a fit and proper person to operate the
karaoke establishment. That said, the Ordinance provides that where a body
corporate or a company formed by partnership wishes to obtain a permit or a
licence, a person authorised by the body corporate or a company formed by
partnership in that behalf shall apply as the representative of the body
corporate or a company formed by partnership and, if a permit or a licence is
granted or issued by the licensing authority, it shall be expressed to be
granted or issued to that person on behalf of the body corporate or a company
formed by partnership. Besides, under Cap. 573, a body corporate or a company
formed by partnership may make an application to the licensing authority to
substitute another person for the person whose name appears on the permit or the
licence as the representative of the body corporate or the company formed by
partnership.
Cap. 573 may serve as a reference in relaxing the appropriate party for holding
a liquor licence. We must, however, ensure that the legal responsibility of the
licensee and law and order will not be affected and the integrity of the
licensing regime will not be compromised. At present, we are carefully examining
the impacts of the legislative amendment proposal from the perspectives of
legal, enforcement actions and resources, and will consult the trade and the
Legislative Council Panel after finalising our proposal. We will study how to
further facilitate the trade on the premise that the work of the law enforcement
agencies in preserving law and order and against crimes will not be affected.
Part three of the question enquires on the number of applications lodged with
the Liquor Licensing Board (LLB) by liquor licensees to authorise other persons
to temporarily manage the licensed premises concerned. Under the Dutiable
Commodities (Liquor) Regulations, in case of illness or temporary absence of the
holder of a liquor licence, the secretary to the LLB may in his discretion
authorise any person to manage the licensed premises for a period not exceeding
three months, and during that period the authorised person shall be deemed to be
the licensee of the premises. In 2006, 2007, 2008 and 2009, the numbers of
applications lodged by liquor licensees with the LLB to authorise other persons
to manage the premises temporarily were 313, 352, 382 and 355 respectively. The
average processing time of each case is around seven to nine days.
Thank you, President.
Ends/Wednesday, March 10, 2010
Issued at HKT 12:48
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