Selling alcohol at school fairs

by Gubb and Partners – 2003

Many schools throughout the country sell alcohol at school fairs. The law has very specific requirements surrounding the sale and use of alcohol. The following opinion by law firm Rudd Watts and Stone highlights some of the key legal considerations.

Do schools require a licence to sell alcohol?

If a school is selling liquor to the public, then a special licence is required. Special licences are dealt with under sections 73–82 of the
Sale of Liquor Act 1989. A special licence authorises the holder of the licence to sell/supply liquor in accordance with the terms and conditions upon which the special licence has been granted.

Section 75 of the Act identifies who may hold a special licence. A school board should be able to bring itself within one of the categories listed in section 75. The simplest way, however, is likely to be for one of the organisers (who has reached the age of 20 years) to apply for and hold the licence in that person’s name.

An application for a special licence must:

  • be made in the name of the person who will hold the licence
  • be made in the prescribed form and manner (the form/manner may vary depending on the District Licensing Agency's requirements)
  • contain the prescribed particulars
  • be accompanied by the prescribed fee
  • be made to the District Licensing Agency for the district in which the application for the special licence must be made.

Under the Act, the District Licensing Agency means the local authority for that district. A school intending to hold a school fair or gala and wishing to obtain a special licence to sell/supply alcohol should contact its local authority to obtain the necessary forms and seek assistance with the application procedure. If the fair or gala has to be postponed to a day not specified in the licence, the licence will have effect in respect of the day on which the occasion or event is held.

Section 79 lists the various criteria the licensing agency is to have regard to in considering whether to grant a special licence – that is, the nature of the event; the suitability of the applicant; the days/hours of sale of the liquor; the areas of the premises the applicant proposes should be designated as restricted or supervised areas; the applicant's proposals for the supply of non-alcoholic refreshments and food, the sale and supply of non-alcoholic beverages; and the provision of assistance with, or information about, alternative forms of transport from the licensed premises.

Section 80 requires that it be a condition of every special licence that a reasonable range of non-alcoholic refreshments be available. Other conditions may also be imposed (for example, related to the provision of food and transport; the days/hours on which alcohol may be sold; the designation of the whole or any part or parts of the premises as a restricted or supervised area; steps to be taken by the licensee to ensure that the provisions of the Act relating to the sale of liquor to prohibited persons are observed; the exclusion of the public (if applicable); the filing of returns relating to liquor sold pursuant to the licence).

In determining the conditions to be imposed, the District Licensing Agency shall have regard to:

  • the days and times at which persons will be participating in the occasion or event or series of occasions or events in respect of which the licence is sought
  • the nature of the activities to be conducted on those occasions or during those events.

The District Licensing Agency may also have regard to the site of the premises:

  • in relation to neighbouring land use
  • where the premises are located in a building, whether the building has adequate means of evacuation, in accordance with applicable legislation.

The supply of alcohol to students

Under section 155 of the Act, it is an offence to supply liquor to minors – that is, persons under the age of 18 years. Under section 162 of the Act, it is an offence for minors to purchase liquor from licensed premises. Minors are not allowed in restricted areas of licensed premises. However, minors are permitted in a supervised area of licensed premises if accompanied by a parent or guardian.

There is nothing in the legislation to stop students consuming alcohol if they are over the age of 18.

Schools and the raffle of alcohol

Under the Gaming and Lotteries Act 1977, it is illegal to raffle alcohol. The prohibition applies whatever the value of the alcohol offered as a prize.

Under section 70 of the Act, the Minister may declare at his/her discretion, by notice in the Gazette, specific property which cannot be disposed of by way of instant game, prize competition or lottery. (In section 2 of the Act, 'lottery' is defined as including a 'raffle'.)

The current list of prohibited prizes are:

  • liquor
  • firearms and ammunition
  • second-hand goods
  • land not zoned residential
  • vouchers or entitlements for any of the above.

In July 2003, a Westlake Boys' High School rugby team attempted to raffle a pallet of beer as part of a fundraiser, but cancelled the raffle after it was labelled 'absurd' and 'illegal'.

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