Traditional Chinese Simplified Chinese Email this article news.gov.hk
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

NNNN

Print this page