Licensing trust

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Licensing trust" – news · newspapers · books · scholar · JSTOR (March 2022) (Learn how and when to remove this message)

Under New Zealand law, a licensing trust is a community-owned company with a government-authorised monopoly on the development of premises licensed for the sale of alcoholic beverages and associated accommodation in an area. This applies to both on-licence and off-licence sales.

The Invercargill Licensing Trust (ILT) in 1944 was the first such body, and remains the highest profile example. Most other trusts have been small by comparison, but several have now created a jointly-owned management company, Trust House Limited, and the assets and payouts of this are very similar to that of the ILT.

The uniqueness of licensing trusts revolves around:

• A responsibility to enhance the well-being of their defined community;
• The distribution of (surplus) profits back to their communities;
• The provision of good, model facilities for the sale of alcohol, the provision of accommodation and meals, and gaming;^[a]
• Accountability to the communities who own them.

In addition, there is an inherent responsibility to efficiently operate commercial businesses profitably.

Licensing trusts belong to the family of community enterprises that are part of the third sector,^[b] a hybrid form of organisation that crosses over sectors, a mixture of market orientation and solidarity (community support). They may be defined as businesses whose primary goals are to support the well-being of their community principally through reinvesting profits generated from their trading activities either in the business and/or in support of community activities, rather than being driven to maximise profits.

The only "essential" liquor outlets allowed to stay open during the COVID-19 pandemic were the ones in "Trust" areas where they had a monopoly on liquor sales and local supermarkets could not sell beer or wine.^[1]

Cite error: There are <ref group=lower-alpha> tags or {{efn}} templates on this page, but the references will not show without a {{reflist|group=lower-alpha}} template or {{notelist}} template (see the help page).