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The Ministry for Regulation will lead a six-month review into New Zealand’s $15.7 billion hospitality industry to identify and remove unnecessary red tape, Regulation Minister David Seymour and tourism and hospitality minister Louise Upston have announced.
The review will cover regulatory settings affecting restaurants, cafés, bars, hotels, catering businesses, food trucks, and food stalls at markets. Gambling regulation is excluded from the scope.
Seymour says the Ministry for Regulation is uniquely placed to address overlapping and inconsistent rules that create costs for business owners and customers.
“The Ministry for Regulation is in a unique position to address regulatory costs that make it harder for Kiwis to get affordable services. Because these regulations are imposed by so many departments, it takes one ministry with a mandate for cutting red tape and fixing things,” he says.
“Hospitality is a sector which was hit hard by COVID. Red tape and dumb rules make it hard for the industry to bounce back. Every Kiwi has a café or bar they wish was still open.”
He says inconsistent local and national requirements are a frequent source of frustration.
“For example, some business owners might be required to get resource consents on top of alcohol licences so that customers can enjoy a cold beer in the sun. In other areas of the country just an alcohol licence is required.
“In a hotel with an alcohol licence, a guest can purchase a glass of wine in the bar but cannot take it to their room. It just doesn’t make sense. That same guest can purchase a bottle of wine from the supermarket to drink in their room.
“Local councils put disproportionate costs on small food truck owners to operate at events. We’ve heard frustration at extensive paperwork requirements, inspections and various fees totalling more than $900 for one event.”
Upston says the review will help improve hospitality rules so they support growth rather than hinder it.
“New Zealand’s hospitality industry has been facing many challenges, and complex rules and unnecessary regulations are making it even more difficult for one of our biggest-earning industries to reach its full potential,” she says.
“This review will improve hospitality rules so they’re working as they should — cutting red tape, keeping costs down, managing risks, and making compliance easier.
“We need to give our business owners the best chance at success. The current regulations act as a significant barrier for new businesses to open, and existing businesses are also struggling with these rules.
“I look forward to working to get hospitality back on the table. We want to hear about red tape getting in the way.”
Feedback can be provided via the Ministry for Regulation’s website at regulation.govt.nz/hospitality-sector-review
