Liquor Licensing (Prohibition of Certain Liquor) Amendment Bill

Second Reading

Second reading.

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (16:10): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Liquor Licensing Act 1997 (the Act), regulates the sale, supply and consumption of liquor in South Australia.

Under section 131AA of the Act, the Minister has the power to prohibit the manufacture, sale or supply of certain liquor, if satisfied that, because of its name, design or packaging or for any other reason, the liquor is likely to have a special appeal to minors or be confused with confectionery or non-alcoholic beverage.

There is currently no explicit power under the Act for me to prohibit the manufacture, sale or supply of certain liquor on general public interest or community welfare grounds.

Other jurisdictions including New South Wales, Queensland and Western Australia, already have the ability to prohibit the sale of undesirable liquor products on public interest grounds.

Earlier this year, the Victorian Minister for Consumer Affairs, Gaming and Liquor Regulation, wrote to her interstate counterparts, regarding the introduction of a powdered alcohol product called 'Palcohol' into Australia.

Palcohol has recently been approved for sale in the United States of America, with the manufacturer of the product apparently seeking to distribute it here in Australia in the near future

The Victorian Government has expressed concerns about the potential impact that the introduction of a product such as this could have on the community.

Likewise, the South Australian Government has concerns about the manner in which powdered alcohol can be easily concealed compared to other types of alcohol, therefore reducing the ability for authorities to identify a person in possession of liquor (for example, in declared dry areas or at large concert and sporting events).

Palcohol being liquor in a powdered form also increases the risk for misuse of the product. For example, consuming the product without dissolving it in liquid or inhaling the powdery substance (similar to illicit drugs such as cocaine and heroin), potentially increasing the rate at which a person can become intoxicated.

On 1 July 2015, the Victorian Minister for Consumer Affairs exercised her power under the Liquor Control Reform Act 1998, to prohibit Palcohol on community interest grounds.

The New South Wales Government has now also prohibited the sale and supply of powdered alcohol on public interest grounds under the Liquor Act 2007.

South Australia (SA) has indicated that it will support a nationally consistent approach to prohibit the sale of powdered alcohol, however, it is apparent that my ability to prohibit certain types of liquor is somewhat limited compared to existing powers in other jurisdictions.

On a question of legal construction alone, section 131AA as it currently stands, should enable the Minister to prohibit the manufacture, sale or supply of powdered alcohol, provided that it is properly included within the scope of the Act by virtue of the Regulations.

A reasonable argument could no doubt be formed that powdered alcohol is likely to have a special appeal to minors, however, it is unclear at this stage how Palcohol will be packaged and sold, should the manufacturer attempt to introduce the product into Australia.

The Bill amends section 131AA of the Act, in line with other jurisdictions, to provide a clear ability to exercise the power under this section in the interests of the general public.

This will enable the Minister to prohibit undesirable liquor products such as powdered alcohol, in the interests of public safety and wellbeing.

It should be noted that before the Minister can exercise his or her power under the Act to prohibit a certain type of liquor, he or she is required to give known manufacturers, importers and distributors of the liquor at least seven days within which to comment on the proposed prohibition.

Appropriate consultation with the relevant Government agencies would also be undertaken, prior to exercising the power under this section.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Liquor Licensing Act 1997

4—Amendment of section 131AA—Prohibition of manufacture, sale or supply of certain liquor

This clause amends section 131AA of the principal Act to add the public interest to the list of grounds in relation to which a declaration under subsection (2) can be made.

Debate adjourned on motion of Hon. J.S. Lee.