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Media Release
Off licences located in poorest areas
15 May 2009

15 May 2009
Mapping of liquor outlets in Manukau City has shown that off licensed premises are located in more deprived areas with greater population density.

In contrast, on-licence outlets are most dense in areas with good transport links, such as town centres, and in areas with high amenity value, researchers from Waikato University’s Population Studies Centre (PSC) told the Alcohol Advisory Council (ALAC) Working Together Conference in Wellington today.

The Waikato researchers were commissioned by ALAC in partnership with Manukau City Council to map the spatial and other characteristics of liquor outlets in the Manukau City area in January 2009.

Waikato University lecturer Michael Cameron said the aim of the project was to develop a policy tool that would allow the marginal impact of an additional liquor licence in a given area to be modeled to inform future decisions.

“Increases in the number of both on and off-licence liquor outlets have been matched with an escalation in the level of community unease about alcohol-related harm, culminating in a decision by the Manukau City Council to review its alcohol strategy.

“Of particular concern was the more vulnerable communities of the city, in which the high density of liquor outlets is a notable feature. Given community concerns regarding the impacts of liquor outlets and the lack of a consensus about the nature and extent of impacts in the academic literature the community is seeking strong empirical evidence that supports (or refutes) the need for changes to existing licensing laws”.

Mr Cameron said the first part of the project involved mapping the spatial and other characteristics of liquor outlets in the Manukau City. Several key results were found relating to the characteristics of alcohol sales namely
  • on-licence outlets are most dense in areas with good transport links, such as town centres, and in areas with high amenity value. This was because these outlets cater to consumers who are looking for a destination to drink at, or where drinking is incidental to some other activity such as a meal
  • off-licence outlet density is positively related to population density and to relative deprivation
  • off-licence outlets are typically not gathered together in clusters. Rather they are distributed throughout the area in order to reduce local competition
  • price and availability of alcohol at off-licence outlets are related to off-licence outlet density. Areas with a higher density of off-licence outlets have higher competition among those outlets, leading to lower prices, longer operating hours, and later weekend closing times.

The next stage of the project will look at the relationship between liquor outlet density and alcohol-related harms, he said.

For more information contact Michael Cameron, Department of Economics, University of Waikato, Phone 07 858 5082, Email: mcam@waikato.ac.nz

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