The Environment and Venue Assessment Tool

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1 The Environment and Venue Assessment Tool Companion guide December 2012 Report to the NSW Office of Liquor, Gaming and Racing

2 Allen Consulting Group Pty Ltd ACN , ABN Melbourne Level 9, 60 Collins St Melbourne VIC 3000 Telephone: (61-3) Facsimile: (61-3) Sydney Level 1, 50 Pitt St Sydney NSW 2000 Telephone: (61-2) Facsimile: (61-2) Canberra Level 1, 15 London Circuit Canberra ACT 2600 GPO Box 418, Canberra ACT 2601 Telephone: (61-2) Facsimile: (61-2) Online Website: Disclaimer: While the Allen Consulting Group endeavours to provide reliable analysis and believes the material it presents is accurate, it will not be liable for any claim by any party acting on such information. Allen Consulting Group 2012 The Allen Consulting Group ii

3 Contents Chapter 1 1 This report The Cumulative impacts of Licence Density Phase 1 Report The Cumulative impacts of Licence Density Phase 2 Tool Development A weighted risk assessment Structure of this report 4 Chapter 2 5 Risk factors and mitigants Location-based risks external Location-based risks market Venue-based risks 10 Chapter 3 12 Assessing risks Risk rating Assessment thresholds 12 Chapter 4 15 Risk weights Risk weighting 15 Chapter 5 16 EVAT assessment Determining the risk rating for a proposed licensed premises 16 Chapter 6 17 Updating the Tool Dynamic and static inputs Updating schedule 17 References 20 Appendix A 22 Responses to density in other jurisdictions 22 A.1 Australia 22 A.2 International 30 The Allen Consulting Group iii

4 Chapter 1 This report The Allen Consulting Group has been engaged by the NSW Office of Liquor, Gaming & Racing (OLGR) in the Department of Trade & Investment to undertake a program of work regarding the cumulative impacts that arise from the clustering of licensed premises/liquor outlets across NSW. The work program was conducted in two phases. The objective of the Phase 1 Report was to conduct an assessment of available data to support the development of a tool to assist in the assessment of risks associated with liquor licence applications. This report serves as a companion guide to that tool. 1.1 The Cumulative impacts of Licence Density Phase 1 Report The Phase 1 report produced a preliminary assessment of the available data to support the development of the Environment and Venue Assessment Tool (EVAT) to assess the cumulative impacts of licence density. This included identification of the evidence and data required in order to determine the impact of a licensed premises. For the purposes of the Phase 1 report, licence density refers to the relative concentration of liquor outlets within a given area. This includes the number of hotels, clubs, on-premises and packaged liquor venues. The cumulative impact of licence density encompasses the net economic and social impact that result from a change in licence density, given the level of density that currently exists. This encompasses: the net impact recognising that there can be both positive and negative consequences; the sum of both economic and social impacts recognising that the density impacts on the community in a variety of ways and on a range of sectors; the existing level of density recognising that impacts may be different for different levels of density. The Phase 1 Report was informed by a review of the domestic and international literature on the impacts of liquor licence density and alcohol consumption and analysis of relevant data, as well as an extensive stakeholder consultation process that involved interviews, workshops and written submissions. Consultations were undertaken with representatives from: the NSW Government; local councils; resident and community groups; representatives of the liquor industry; other business groups; The Allen Consulting Group 1

5 the NSW Police; leading researchers; and other relevant parties. Spatial data pertaining to the economic and social impacts of density was collated for this report from a range of NSW Government agencies as well as other sources. The Phase 1 report concluded that the density of licensed premises is linked to a range of both positive and negative outcomes. For example, changes in the density of licensed premises can be associated with changes in competition and social vibrancy, as well as variation in the level of anti-social behaviour and alcohol related violence. Furthermore, the impact of an additional licence can be influenced by a range of factors including: the existing density of licensed premises; the composition and nature of existing licensed premises; the capacity to accommodate new licences in the locality (including transport options, policing levels, environmental planning choices and other factors); existing levels of violence and anti-social behaviour; regulatory constraints; and other relevant factors. While the Phase 1 report sought to examine the cumulative impacts to the NSW economy broadly, special attention was given to the City of Sydney, with the majority of consultations focusing on issues pertaining to this area. 1.2 The Cumulative impacts of Licence Density Phase 2 Tool Development Following on from this review of the evidence, Phase 2 of this study involved the construction of a tool to inform the decision making process surrounding the granting of new liquor licences. This tool, the Environment and Venue Assessment Tool (EVAT), has been developed to provide guidance to decision-makers regarding the assessment of the risks associated with proposed new licensed premises. The objective of EVAT is to provide consistent, evidence-based guidance to inform regulators decision making regarding the approval of new licences. EVAT offers an objective, evidence-based mechanism that balances potential risk factors within the application against: local liquor market conditions, existing levels of alcohol-related problems and the existing level of necessary services to the region of the proposed venue; and the level of risk associated with the type of licensed premises proposed. The Allen Consulting Group 2

6 Importantly, as discussed in the Phase 1 Report, EVAT should be employed as part of an assessment of any licence application. It should be considered as a supporting mechanism not a decision maker. The ultimate decision to grant a new liquor licence remains the discretion of the Independent Liquor and Gaming Authority (ILGA), as outlined in the Act. 1.3 A weighted risk assessment How a new liquor licence might impact on a community is a complicated question, dependent on a range of factors. Moreover, these factors relate to the features of the environment where the application is being proposed, as well as the application itself. Reflecting this complexity, EVAT employs a weighted-risk assessment to evaluate the potential risks inherent to an application. A weighted risk assessment consists of four components: risk factors and mitigants those factors identified as being related (either positively or negatively) with the risks of a new licence; risk factor assessments an evaluation of the severity of risk present in the risk factors relevant to an application; risk weights the relative importance of each risk factor to the overall assessment; and EVAT assessment which sums the weighted risk factor assessments into an aggregate score. The architecture of the weighted risk assessment is depicted in the following figure. Each of these components is discussed further in the subsequent chapters. Figure 1.1 EVAT ASSESSMENT 2,(-*3'04/+*'(("((5"#4* 2,(-*9",781#7(* :!;<*'(("((5"#4*./0'1/#% &'(")*+,(-(*!"#$"% &'(")*+,(-(* 6,78*./9*./0'1/#%* &'(")*+,(-* +'1#7*!"#$"% &'(")*+,(-* +'1#7* Source: The Allen Consulting Group The Allen Consulting Group 3

7 1.4 Structure of this report The remainder of this report is structured as follows. Chapter 2 provides an overview of the data inputs used to inform EVAT. Chapter 3 outlines how the tool determines the risk associated with proposed new licensed venues. Chapter 4 provides a schedule for updating the tool and possible improvements that could be explored in the future. Appendix A to this report highlights the approaches of other jurisdictions to the issue of liquor licence density. The Allen Consulting Group 4

8 Chapter 2 Risk factors and mitigants The data used within EVAT is sourced from publicly available sources, data held by OLGR, and information provided by the applicant in its licence application submission. The data is used to determine the level of risk associated with: location-based risk including: external factors; and market factors; and the venue and its trading practices. Information about the data sources used to populate the EVAT to determine these risk levels are detailed below. 2.1 Location-based risks external In the Phase 1 report a number of location-based factors were identified in either the literature or through stakeholder consultations as indicators that can affect the impact of an additional licensed premises. The location-based factors that have been included in the EVAT are summarised in Table 2.1 and discussed in detail throughout this section. Table 2.1 LOCATION-BASED RISK FACTORS Indicator Data Source Availability of late night transport Alcohol related anti-social behaviour Whether the transport infrastructure is appropriate Rate per 1000 residents Based on data provided by the Office of Liquor, Gaming and Racing Bureau of Crime Statistics and Research Alcohol related violence Rate per 1000 residents Bureau of Crime Statistics and Research Police assessment Risk assessment Assessment provided by the Local Area Command Community assessment Risk assessment Assessment provided by the local council. Source: Allen Consulting Group 2012 The Allen Consulting Group 5

9 Availability of late night transport Having adequate late night transport infrastructure in place was highlighted by numerous stakeholders as a vital component of a sustainable late night economy. Inadequate transport options can result in large groups of frustrated and intoxicated people congregating in predominately unsupervised areas. The inability for revellers to promptly leave an area was identified as a contributing factor to a number of alcohol-related problems. Venues that attract large numbers of people to an area are often accompanied by dedicated transport plans to efficiently disperse a high density of people after the event. Examples of this include: dedicated train, bus and car parking infrastructure at the Olympic stadium at Homebush; special event buses between Central station and Randwick racecourse on days when race meetings are being held; and extended public transport operating hours to accommodate New Years Eve revellers. Areas for proposed licensed venues need to have appropriate transport systems in place to disperse people looking to move on after a night out. The transport options available need to be appropriate for the area and reflect the numbers of people that can be expected in the vicinity of the proposed venue. Possible options can include appropriately lit car parks, supervised taxi ranks and late-night buses, amongst other options. OLGR data is currently only available at an LGA level. For the purposes of the EVAT assessment, it has been assumed that if late night transport is available in an LGA, then it is available in all suburbs. Alcohol-related anti-social behaviour Academic research has identified a link between an excess of licensed premises in an area and a greater incidence of anti-social behaviour. This link was also observed by almost all stakeholders consulted during the Phase 1 study. Anti-social behaviour impacts most heavily on the residents of an area of high licensed premises density. It also contributes to a sense of lawlessness amongst revellers, which can lead to greater harms. Data from the Bureau of Crime Statistics and Research regarding alcohol-related anti-social behaviour was drawn on for this analysis. This data was reported by the NSW police force by suburb. This data is included to indicate at a Statistical Suburb Category (SSC) level where the existing level of alcohol-related anti-social behaviour is already high. Alcohol-related violence As prominent recent cases have shown, alcohol-related violence can potentially have extremely serious consequences for victims, including significant permanent injuries and even death. The Allen Consulting Group 6

10 The Phase 1 study demonstrated that alcohol-related violence was closely associated with the increased density of licensed premises. The data in the figure below demonstrates the correlation we found. This finding was supported by research undertaken by other individuals (see Burgess and Moffatt 2011, Livingston 2011). Figure 2.1 RELATIONSHIP BETWEEN OUTLET DENSITY AND ALCOHOL-RELATED ASSAULTS LINKED TO PREMISES Source: The Allen Consulting Group Data for this analysis was sourced from the Bureau of Crime Statistics and Research, using data reported by the NSW police force by suburb. It is included to indicate SSCs where the existing level of alcohol-related violence is already high. Police assessment The Police Local Area Command experience first hand the problems associated with licensed premises in an area. They also have experience in the local area, observing changes to alcohol-related problems in the community over time. Local Area Commands around the state are a valuable source of information regarding existing alcohol-related problems in an area, and changes in this over time. An assessment of the existing liquor market conditions will be sourced by OLGR from the Local Area Commands. This assessment will be undertaken in line with a framework designed to provide for a consistent assessment across all SSC levels. Community assessment Local councils are involved in a range of planning decisions that affect a local area. Local councillors are elected by the residents of an area and are thus legitimate representatives of viewpoints of residents. Information will be drawn from local councils so that the final risk assessment includes the advice of experienced planners and the will of the local community in the risk assessment. Local councils will be provided with guidelines to assist their assessments of the level of the liquor industry in their SSC/s. The Allen Consulting Group 7

11 2.2 Location-based risks market Similarly, the impacts of density have been shown to be affected by a range of local liquor market factors. Data about local conditions is available at a (SSC) level, as defined by the Australian Bureau of Statistics, for the variables described in Table 2.2. Table 2.2 MARKET-BASED RISK FACTORS Indicator Data Source Density of licensed premises Diversification of licensed premises Excess of high-risk venues Extent of late night trading Density was determined as the number of licensed premises within a 1km radius of an existing premises. This data was then averaged for the SSC. Proportion of licensed premises in the SSC that have on-premises licences Proportion of licensed premises in the SSC that are hotel licences Proportion of licensed premises in locality that operate outside of the standard trading period of 5am to Midnight Monday to Saturday and 10 am to 10pm on Sunday The Allen Consulting Group Office of Liquor, Gaming and Racing Office of Liquor, Gaming and Racing Office of Liquor, Gaming and Racing Source: Allen Consulting Group 2012 Density of licensed premises Phase 1 of this study found that the density of licensed premises in a LGA was a statistically significant predictor of the rate of alcohol-related assaults in a LGA. An increase in the density of licensed premises was shown to be linked with an increase in assaults. This is consistent with other studies that have investigated the relationship between licensed premises density and alcohol-related assaults (for example, Burgess and Moffat 2011). The density of licensed premises was calculated using the Geographic Information System program, MapInfo Professional. The address details of licensed premises in NSW were geocoded into a format that is compatible with the computer program, and then an analysis was undertaken. The density score for a specific licensed premises was calculated by analysing the number of other licensed premises located within a one kilometre radius of the premises in question. This score was averaged across the SSC. The Allen Consulting Group 8

12 Diversification of licensed premises A European style drinking culture was often cited by stakeholders as a desirable outcome for the drinking culture, especially in Sydney. Some licensed premises are seen as more conducive to this type of culture, where alcohol is enjoyed in moderation and most commonly consumed with meals. During discussions with stakeholders, some believed that increasing the number of licensed premises in an area in a way that improved the mix of licensed venues could reduce the negative impacts that licensed premises have on an area. Stakeholders saw increasing the proportion of on-premises licences in an area as leading to improvements to the culture around the consumption of alcohol in an area and reducing the extent of alcohol-related harms. Data sourced from OLGR regarding the location of licensed premises in NSW was used to determine the proportion of the total licensed premises in a SSC where an on-premises licence exists. Excess of high-risk venues A higher proportion of certain licence types are associated with increased violence and antisocial behaviour, which can add to the risks inherent to a location. This was supported by research in the literature (Briscoe & Donnelly 2003; JAS 2011) and comments from stakeholders. Stakeholders identified pub-style venues with hotel licences as being connected with the highest level of alcohol-related harms in an area. This was supported by studies undertaken in NSW and in the ACT (Briscoe & Donnelly 2003; JAS 2011). If a location has a high proportion of licensed premises that are hotel licences then this is considered to contribute to the risk associated with an area. Data sourced from OLGR regarding the location of licensed premises in NSW was used to determine the proportion of the total licensed premises in a SSC that have been granted either a hotel licence or an on-premises licence, with a Primary Service Authorisation. Extent of late night trading Alcohol-related problems have been shown to occur with a higher frequency very late at night (see JAS 2011). Further, restricting operating hours and enforcing other time-based trading restrictions such as lockouts have been shown to reduce the rate of alcohol-related violence in and around some licensed premises (Jones et al 2009). Hence, a high proportion of licensed premises trading late resulted in a location being considered to pose a higher risk. Late night trading is also considered as a risk associated with a proposed licensed premises and, thus, is considered in the venue-based risk factors. Data sourced from OLGR regarding the trading hours of licensed premises in NSW was used to determine the proportion of the total licensed premises in a SSC that trade outside of standard trading hours. The Allen Consulting Group 9

13 2.3 Venue-based risks The Phase 1 study identified a number of risk factors associated with different types of licensed premises, the presence of which had the potential to exacerbate (or mitigate) the impacts of licence density. Based on the data provided by the applicant about the licence they are applying for, an assessment of the venue-based risk associated with a proposed new licensed premises will be made. Factors included in this risk assessment are outlined in Table 2.3 below. Table 2.3 VENUE-BASED RISK FACTORS Indicator Data Source Venue type Licence type: hotel club on-premises (primary service authorisation) on-premises (no primary service authorisation) packaged Applicant Extended trading Venue open after midnight Applicant Venue capacity Liquor accord membership Has the applicant committed to licence conditions that would mitigate risks? Source: Allen Consulting Group 2012 Maximum number of persons permitted in venue Membership of local liquor accord Nominated by the applicant Applicant Applicant Applicant Venue type Due to factors such as amenity, the way alcohol is served and promoted and the entertainment provided, some venues pose a greater risk of violence and other alcohol-related problems. Briscoe and Donnelly s (2003) study demonstrated that hotels and nightclubs were over represented in police-recorded assault incidents on licensed premises. Hotels and nightclubs comprise 12 per cent of venues in inner Sydney yet accounted for almost 60 per cent of all on-premises assaults, comprised 8 per cent of inner Newcastle licensed premises and nearly 80 per cent of assaults, and 6 per cent of licensed premises in inner Wollongong and 67 per cent of assaults. Thus, given the evidence outlined above, hotel licences are considered a greater risk than other licences. The Allen Consulting Group 10

14 Opening hours Australian research has highlighted that, relative to premises with standard trading hours, extended trading hours for both on and off- premises licences leads to an increase in the risk of assaults, drink driving and alcohol-related violence (Briscoe & Donnelly 2001; Chikritzhs & Stockwell 2002, 2006; NDRI 2007). These studies also demonstrated that the hours between midnight and 6am posed the greatest risk of assault on a licensed premises. As such, venues looking to trade later than midnight are considered to pose a greater risk than venues that are open during the hours that pose less risk of violence. Capacity The impact a night time venue could be expected to have is dependent on the number of additional patrons it could be expected to bring to an area. This could be partly explained by the simple scenario of more people resulting in more problems. However, if the number of people attracted to an area overwhelms the ability of the local infrastructure to safely accommodate them, then problems that arise from a new venue could be exacerbated. A study of licensed premises in Canberra demonstrated that venues with larger patron capacities posed a greater risk of alcohol-related incidents (JAC 2011). Accord membership Liquor Accords have been established to promote a cooperative approach between licensees, police, government, community groups and other stakeholders to reduce alcohol-related problems. Stakeholders supported participation in liquor accords as a method by which to improve the culture of alcohol sales in the community. Additional mitigation commitment By undertaking additional mitigation strategies, proprietors are committing to further reducing the negative impact their premises have on the community. Potential examples of this could be the measures undertaken as part of the coordinated response to address alcohol-related problems in Newcastle in 2008 (outlined in "The impact of restricted alcohol availability on alcohol-related violence in Newcastle, NSW", Crime and Justice Bulletin, Number 137, November 2009). Other factors could be measures that reduce the impact of the premises on the surrounding community, such as sound proofing of the building. Applicants will be asked if they have committed to licence conditions that would mitigate risks? Where the answer is yes this will be treated as a reduction in risk. The Allen Consulting Group 11

15 Chapter 3 Assessing risks Each application will bring with it a unique set of risk factors which will influence how the application can be expected to impact on the community. Each of those factors needs to be assessed in an objective and consistent manner. A risk rating is applied to each risk factor that reflects the inherent risk to the community. Ratings are awarded against defined thresholds that are based on the distribution of data across NSW. This chapter outlines how each of those factors are to be assessed. 3.1 Risk rating The level of risk associated with each factor was classified according to the categories defined in the following table. Table 3.1 RISK RATINGS Rating Mitigating Low Moderate High Extreme Definition The presence of the factor is considered to reduce the overall risks to the community The level of risk associated with this factor is considered low The level of risk associated with this factor is considered moderate The level of risk associated with this factor is considered high The level of risk associated with this factor is considered extreme Source: The Allen Consulting Group. 3.2 Assessment thresholds Each factor receives an assessment score as determined by a set of assessment thresholds. Generally, assessment thresholds are set relative to the distribution of data across NSW as described in the following table. The Allen Consulting Group 12

16 Table 3.2 ASSESSMENT THRESHOLDS DEFINITIONS Rating Low Moderate High Extreme Assessment threshold Where the risk factor reports a value that is less than 90 per cent of the NSW average Where the risk factor reports a value that is less than 0.5 standard deviations above the NSW average, but is greater than Low threshold Where the risk factor reports a value that is less than three standard deviations above the NSW average, but is greater than Moderate threshold Where the risk factor reports an value that is greater than three standard deviations above the NSW average Source: The Allen Consulting Group. Risk factors are only able to be assessed on this scale where data is continuous. This includes the rates of alcohol-related violence, alcohol-related offensive behaviour, density of licensed premises, the proportion of high-risk venues in a locality and the proportion of late night trading venues in a locality. Some variables were non-continuous and could not be assessed as above. These variables included: the presence or absence of appropriate late night transport options; the licence type being applied for; extended trading hours for the proposed venue; and willingness of the proprietor to join a liquor accord and to take further risk mitigation steps were all considered as categorical variables. Appropriate late night transportation options were considered a mitigating factor, whilst the lack of such services provided a moderate level of risk. Joining a liquor accord and vowing to implement mitigation strategies are considered to contain the level of venue risk, with a failure to undertake these contributing an additional level of risk. If a venue was looking to operate with extended trading hours it was considered a high risk, with standard hours contributing a low level of risk. For some non-continuous variables such as the police assessment and council assessment it was necessary to assess risks qualitatively. Classifications of low, moderate, high and extreme were determined according to the opinion of the relevant bodies. Although a continuous variable, the proportion of on-premises licences in a region was considered as a dichotomous variable, with greater than 30 per cent of licensed premises being on-premises licences considered a mitigating factor. A lower proportion of on-premises licences was considered a low risk factor. The tool draws on the descriptive information about the location where the premises is to be located, and details of premises proposed to determine the aggregated risk score and resulting risk rating. Based on the existing data sets, the following table outlines the thresholds at the SSC level. The Allen Consulting Group 13

17 Table 3.3 ASSESSMENT THRESHOLDS VALUES Factor Mitigating Low Moderate High Extreme External factors Assault Offensive behaviour Transport Available Not Available Police assessment Council assessment Low Medium High Low Medium High Market risk factors Density High risk venues Diversifying venues Late night trading >0.3 < Venue-based risk factors Licence type On-premises (without Primary Service Authorisation) Package Club On premises (with Primary Service Authorisation) Hotel Capacity Less than to 90 More than 90 Extended trading No Yes Liquor accord Yes No Mitigation strategies Yes No Source: Allen Consulting Group 2012 The Allen Consulting Group 14

18 Chapter 4 Risk weights The contribution made by each risk factor to the overall level of community risk is not equal. To account for this, each risk factor is weighted to reflect the relative contribution it makes to total risk and the level of supporting evidence in the literature. 4.1 Risk weighting Risk factors were given a high or a low weighting. High weightings were given to factors that are strongly related to increases in alcohol related problems, as demonstrated by the research explored in Phase 1 of this study. Low weightings were given to risk factors that were shown to have less of an effect on alcohol-related problems. High and low weighted risk factors are summarised in the table below. Table 4.1 RISK WEIGHTINGS High weighting risk factors Rates of alcohol related violence Rates of alcohol related anti-social behaviour Density of licensed premises Late night trading venues in locality Venue type Extended trading Venue capacity Low weighting risk factors Provision of late night transport Police assessment Council assessment High risk venues in locality Diversification of venues Liquor accord membership Additional mitigation commitment Source: The Allen Consulting Group The Allen Consulting Group 15

19 Chapter 5 EVAT assessment The EVAT is designed to take the data elements outlined in the previous chapter and use them to determine the level of risk associated with a proposed licensed premises. The tool is designed to draw on these data points to calculate, then aggregate, the relevant risk ratings across the measured risk factors. This determines the relative level of risk associated with a proposed licensed premises. EVAT provides a weighted risk assessment of an application that accounts for both location and premise-based risks. The assessment involves the consideration of whether: the proposed venue is to be located in a high-risk area; and the application is for a high-risk venue. In each case, the EVAT considers a weighted assessment of identified risk factors based on a threshold analysis. The method by which the location-based and venuebased risk ratings are determined is outlined in the section below. 5.1 Determining the risk rating for a proposed licensed premises The SSC for a proposed new licensed venue is used to determine the applicable risk ratings for each of the 10 location-based risk factors. Information regarding the proposed venue s licence type, capacity, operating hours, liquor accord membership and risk mitigation strategies are used to determine the venue-based risk ratings for the proposed new licensed premises. EVAT contains an algorithm that determines: an assessment of the risk associated with the location of the proposed venue; and an assessment of the risk associated with the type of venue being proposed. Venues to be located in SSCs that have an overall level of alcohol-related harms lower than the mean for all NSW locations are considered low risk. Locations around the mean are designated as moderate risk locations. Locations considerably higher than the mean are considered to be high or extreme risk. Dependent on the characteristics of a proposed venue, the risk associated with the venue is considered to be low, moderate or high. The Allen Consulting Group 16

20 Chapter 6 Updating the Tool In order to ensure that decisions are made based upon the latest available evidence the inputs into the EVAT will need to be updated at pre-determined intervals. This section covers the issues surrounding this process. 6.1 Dynamic and static inputs The data informing the EVAT can be divided into two groups: Those dynamic inputs that are provided by the applicant in its application. These will be required to be updated each time the EVAT is used. These are: licence type; venue capacity; extended trading; accord membership; and commitment to additional mitigation strategies. The static inputs are those used to provide context and are independent of a application, these are: the council assessment; the police assessment. the density of licensed premises; the proportion of licensed premises in the locality that are hotels; the proportion of licensed premises in the locality that are on-premises; the proportion of licensed premises in the locality that have extended trading hours; incidents of assault; incidents of offensive behaviour; the availability of late night transport. 6.2 Updating schedule Those inputs that are either supplied by the applicant or are relevant to an individual application will be required to be updated each time an application is assessed using the EVAT see Table 6.1. The Allen Consulting Group 17

21 Table 6.1 INPUTS REQUIRING UPDATING FOR EACH USE OF THE EVAT EVAT Input Measurement Source Licence type User input Applicant Capacity User input Applicant Extended trading User input Applicant Accord User input Applicant Mitigation User input Applicant Source: Allen Consulting Group Those inputs that will be required to be updated over time to reflect changes in market behaviour and environmental risk factors are detailed below in Table 6.2. Table 6.2 POTENTIAL EVAT UPDATE SCHEDULE EVAT Input Measurement Source Update frequency Police assessment Risk assessment Input from Local Area Command Local Government Authority assessment Risk assessment Input from Local Government Authority Assault Incidents per 1000 persons Bureau of Crime Statistics and Research Offensive behaviour Incidents per 1000 persons Bureau of Crime Statistics and Research Transport Late night options available Office of Liquor, Gaming and Racing Density Radial estimate Office of Liquor, Gaming and Racing High risk venues Diversifying venues Late night trading Proportion of licences in locality that are hotels Proportion of licences in locality that are on-premises Proportion of venues in locality with extended trading hours Office of Liquor, Gaming and Racing Office of Liquor, Gaming and Racing Office of Liquor, Gaming and Racing Upon release of new data (expected annually) Upon release of new data (expected annually) Upon release of new data (expected annually) Upon release of new data (expected annually) Upon release of new data (expected annually) Annually Annually Annually Annually Source: Allen Consulting Group Data that is collected and disseminated by other government agencies will need to be updated when new information is released. The incidence of alcohol-related assault and offensive behaviour is provided by the NSW Bureau of Crime Statistics and Research, which is nominally updated on an annual basis. However, the data that is released yearly is reflective of incident data from the previous two years. The Allen Consulting Group 18

22 The proportion of licences in a locality that are hotels, on-premises, and have extended trading hours are directly related to the radial estimate of density. These proportions are calculated using data supplied by OLGR. In order to update these figures the geocoding exercise will need to be repeated. For this project, the radial estimate of density was created using MapInfo Professional software. The bulk of the work associated with this analysis was coding of the licence location data into a form that could be analysed by the program ("geocoding"). A subcontracted firm, Pitney Bowes, were engaged to undertake this work. With a licence to use this software and an appropriately trained staff member OLGR should be able update this data, or Pitney Bowes or another provider could be contracted to update the dataset as required. Market risk factors should be considered on a yearly basis, or more frequently if desired. It would be possible, although somewhat labour intensive, to update this data as licences are granted or cancelled. Given the interrelated nature of the data it would be optimal to update all of the information at once. Considering the time and materials required to update the data it would be practical to undertake this in a 12-month cycle in line with the release of additional data by BOCSAR. The Allen Consulting Group 19

23 References ACT Government 2011, Guide to completing a Risk-Assessment Management Plan (RAMP), Canberra, < Accessed 11 September ACT Justice and Community Safety Directorate 2012, Liquor Industry, ACT Government, Canberra, < _industry>, Accessed 23 August Alcohol and Gaming Commission of Ontario (AGCO) 2012, Risk-based licensing FAQs, Toronto, < Accessed 27 August Briscoe S and Donnelly N 2003, Problematic Licensed Premises for Assault in Inner Sydney, Newcastle and Wollongong, The Australian and New Zealand Journal of Criminology, Vol 36, No 1, pp Burgess M and Moffatt S 2011, The association between alcohol outlet density and assaults on and around licensed premises, Contemporary Issues in Crime and Justice, No 147, pp City of Stonnington 2010, Late night liquor licence trading in the Chapel Street Precinct: Measuring the saturation levels Research Paper, City of Stonnington, Corporate and Community Planning, < Accessed 22 August City of Vancouver 2012, Liquor-serving establishments, < Accessed 11 September Hill L 2004, Planning for the sale of Alcohol: An issues paper for the Ministry of Health, NZ Drug Foundation, Wellington, < Accessed 24 August Home Office 2012, Alcohol Licensing, United Kingdom Home Office, London, < Accessed 23 August International Center for Alcohol Policies (ICAP) 2012, Minimum Age Limits Worldwide, Washington DC, < Accessed 24 August Justice and Community Safety Directorate (JAS) 2011, Options Paper: Liquor Licensing Fee Models, Canberra. The Allen Consulting Group 20

24 Legifrance 2012, Code de la santé publique, Paris, < 5&dateTexte= >, Accessed 27 August Livingston M 2011, Alcohol outlet density and harm: Comparing the impacts on violence and chronic harms, Drug and alcohol review, Vol 30, Iss 5 pp Matthews S 2009, To compare regulatory and planning models which reduce crime in the night time economy, Winston Churchill Memorial Trust of Australia, < port_-_suzie_matthews_01.pdf>, Accessed 21 August New Zealand Drug Foundation 2012, Alcohol Reform: Let s get it right, Wellington, < Accessed 27 August New Zealand Law Commission 2010, Alcohol in our lives: Curbing the harm, Wellington, < Accessed 24 August Queensland Government Office of Liquor, Gaming and Racing 2012, Guideline 38 Community Impact Statement, Brisbane, < tml>, Accessed 11 September Queensland Government Office of Liquor, Gaming and Racing 2009, Guideline 42 Risk Assessed Management Plan (RAMP), Brisbane, < accessed 11 September Scottish Government 2012, Alcohol Licensing, Edinburgh, < Accessed 24 August Victorian Commission for Gambling and Liquor Regulation (VCGLR) 2012, Liquor Licensing Fact Sheet: Liquor licence fees, Melbourne, < 73fd743df4ae/vcglrjuly12_liquorlicencefees.pdf>, Accessed August Victorian Department of Planning and Community Development (DPCD) 2012, Practice Note 61: Licensed premises: Assessing cumulative impact, Melbourne, < data/assets/pdf_file/0005/60809/pn61-licensedpremises_assessing-cumulative-impact.pdf>, Accessed 22 August World Health Organisation (WHO) 2011, Global Status report on alcohol and health, Geneva, < html>, Accessed 24 August The Allen Consulting Group 21

25 Appendix A Responses to density in other jurisdictions This appendix examines the policy responses that have been used in other jurisdictions, in both Australia and internationally, to reduce the adverse impacts arising from the density and clustering of licensed premises. The first section looks at policies used by local and state governments in the Australian context. The second section examines approaches used in internationally. A.1 Australia In Australia, the responsibility for the administration and principal point of regulation of licensed venues, as they related to the sale of alcohol, lies with state governments. However local governments have the power to regulate the operation of these venues through imposing conditions on their development applications or denying their approval. The Australian Capital Territory, Queensland and Victoria, maintain fee-based licencing models. This section briefly looks at the risk-based approaches used in the ACT, Queensland and Victoria. Victoria The Victorian Government regulates liquor licences through the Victorian Commission for Gambling and Liquor Regulation (the Commission). The Commission is responsible for introducing a risk-based licensing system that is designed to recover the costs associated with regulating the industry. The fees charged for each liquor licence are supposed to reflect the relative level of harm posed by each form of licence, and therefore the increased cost of alcohol-related harm that arises from their use. The capacity to regulate the cumulative impact of density or clustering provisions has been included in the Victorian Planning Provisions, however decision-making regarding its approval has been devolved to the local government level. The Victorian Department of Planning and Community Development has developed some material to assist local councils determine the cumulative impact of an additional licensed premise that includes elements of both density and clustering. In particular, the guidelines provide an outline of issues that should be considered when assessing the cumulative impact of licensed premises. These include: planning policy context; surrounding land use mix and amenity; the mix of licensed premises; transport and dispersal; and impact mitigation. The Allen Consulting Group 22

26 The guide provides background information to explain the relevance of each issue and lists a series of questions designed to guide the assessment of a planning application. While applicants are required to answer each question as part of their application, a council is required to do the same as part of its assessment process. This is to determine whether a proposed cumulative impact is either reasonable or can be appropriately managed. Where questions are not relevant, applicants are required to provide a brief explanation. The amount of detail for each response is expected to be proportional to the likely and cumulative impact that a proposed venue may have. For example, an application for a large venue that is likely to have a great impact should be supplemented with a detailed study or report and prepared by a qualified individual to explain how the cumulative impact will be managed. For assistance in their applications, applicants can contact their local council for a comprehensive list of information that is required to accompany a planning application. The following briefly outlines background information to explain the significance of each issue noted earlier. Planning policy context Amenity and land use outcomes for an area can be guided by state and local policy, zoning and other planning controls. Such controls may relate to various purposes, such as the role of an activity centre, appropriate locations for entertainment uses, and blend of uses in an area. They may also inform assessments in relation to reasonable amenity for a particular area. A list of questions to guide the assessment of a planning application for this issue is provided in Box A.1. Box A.1 PLANNING APPLICATION QUESTIONS PLANNING POLICY CONTEXT Existing context What are the policy, zoning and other planning controls that are relevant to the surrounding area? What amenity, land use and other planning outcomes do these controls encourage? Assessment Is the proposal consistent with the planning outcomes encouraged in the policy, zoning and other planning controls for the area? Source: DPCD 2012 Surrounding land use mix and amenity A permit assessment is required to examine the planning policy context against existing amenity levels, which provide a foundation to examine the potential cumulative impact of a proposal. A key determinant of the existing amenity level of an area is the mix of land uses, where for example a mixture of entertainment and other uses can lead to the perception that an area is an entertainment or tourism destination. Alternatively, the location of sensitive uses such as houses and medical facilities increases amenity expectations for a given area. The Allen Consulting Group 23

27 The vibrancy and amenity of an area can be increased by a diversity of uses, which may assist in mitigating potential harms and further decrease the likelihood for negative cumulative impact. For example, late night uses that do not focus on providing alcohol present optional activities for visitors and thereby result in potentially improved patron behaviour in an area. The council complaints database and site observations can assist in determining existing licensed premises impacts. A list of questions to guide the assessment of a planning application for this issue is provided in Box A.2. Box A.2 PLANNING APPLICATION QUESTIONS SURROUNDING LAND USE MIX AND AMENITY Existing context Does the subject land adjoin sensitive uses? What is the relationship between licensed premises and other uses in the area? What are the local crime statistics related to licensed premises? Are there other premises open after 11pm? What is the existing level of amenity in the area? What are the reasonable amenity expectations in the area? Assessment Will the proposal significantly increase the number of patrons near sensitive uses at any time? Given the location and planning policy context, will the proposal generate amenity impacts beyond what is reasonable? Source: DPCD 2012 The mix of licensed premises The blend of licensed premises in a given area can influence potential cumulative impacts, where for example an area with large bars and nightclubs may have significantly greater impacts relative to an area that features a mixture of restaurants, cinemas and small bars. Licensed premises with late-night trading hours have been linked to increased harm, including violence. Those licensed premises open after 11pm are regarded as posing an increased risk to the surrounding area. Similarly, licensed premises with a patron capacity of over 200 are considered to pose a greater risk of alcohol-related harm and may result in negative cumulative impact. A packaged liquor outlet that is located within the surrounding area of a premises with a patron capacity of over 200 provides patrons with the opportunity to consume alcohol in a public place prior to or after entering a premises. Such outlets can therefore increase the possibility of anti-social behaviour and public disturbances. A list of questions to guide the assessment of a planning application for this issue is provided in Box A.3. The Allen Consulting Group 24

28 Box A.3 PLANNING APPLICATION QUESTIONS THE MIX OF LICENSED PREMISES Existing context What is the mix of licensed premises in the area? Do any licensed premises cater for more than 200 patrons? How many and what type of licensed premises (especially high capacity venues and packaged liquor outlets) operate after 11pm? Do licensed premises commonly operate at capacity and is queuing outside common? Do many licensed premises in the area show a high ratio of standing to seating? Are there any local laws regulating consumption of liquor in public spaces? Is there any evidence of problems apparent in the area, such as property damage or littering, that may be attributed to alcohol related incidences? Are complaints (for example, to council or Victoria Police) about licensed premises already being generated in the area? Are there any known enforcement proceedings against licensed premises in the surrounding area? Assessment Does the proposal contribute to the diversity of activities and vibrancy in the area? Will the proposal reinforce any existing or create any new impacts arising from the mix of uses in the area? Source: DPCD 2012 Transport and dispersal An important consideration is whether patrons that leave or move between licensed premises are likely to pass through areas with sensitive uses, therefore the manner in which they leave at closing time may have a considerable impact on an area s amenity. The quality and frequency of services such as the routes patrons will take to leave an area, the availability of taxi ranks and accessibility of public transport are factors that influence the duration that patrons spend in an area. It is considered that patrons are more inclined to maintain acceptable and better behaviour when they do not experience delays in travelling home. Difficulties in orderly patron dispersal may arise from a concentration of high risk licensed premises that close at similar times. This occurrence can be resolved by varying the closing hours, which will result in fewer people on streets attempting to leave an area at the same time. A list of questions to guide the assessment of a planning application for this issue is provided in Box A.4. The Allen Consulting Group 25

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