WA Govt v Coles, Woolies over bottle shop restrictions

The State Government is on a collision course with retail giants Coles and Woolworths over moves to curb the proliferation of “booze barns” such as Dan Murphy’s and First Choice Liquor.

Woolworths fired an early salvo yesterday, accusing the Government of conspiring to put upward pressure bottle shops’ low prices popular with consumers.

Amendments to the Liquor Control Act to be introduced next week would ban liquor outlets of a certain size from opening within a specified radius of each other. The Government is proposing 400sqm and 5km.

A separate plank of the legislation would ban the Director of Liquor Licensing from approving any new packaged-liquor outlet, regardless of size, if they were satisfied require-ments were already being “reasonably” met by outlets nearby.

Racing and Gaming Minister Paul Papalia said most consumers could already buy alcohol within an acceptable distance of their home.

Northern Territory is the only other jurisdiction which has attempted to regulate shop-floor sizes.

Woolworths appealed against that legislation in the Federal Court.

It dropped the case in August but has not ruled out further action.

Mr Papalia said the legislation, if successful, could be a template for other States.

“It will slam the barn door shut on liquor barns in areas that are already oversupplied,” he said.

There are about 30 liquor “barns” in WA.

Mr Papalia said big retailers were moving into a well-serviced area, “cannibalising everybody else through the provision of low-priced liquor in bulk and in so doing over-supplying that particular area and doing consider-able harm”.

He denied the proposed reforms would affect prices.

Shane Tremble, corporate services general manager for Woolworths’ Endeavour Drinks Group that includes Dan Murphy’s, said it was nonsensical for the Government to promote competition but curb bottle shops.

“We urge the WA Government to reconsider such proposals, which have not undergone any consultation and are clearly against the interests of their constituents,” he said.

Curtin University professor Steve Allsop said there was a link between cheap alcohol and harm.

Liquor Stores Association chairman Lou Spagnolo, representing smaller retailers, said it was wise to have controls which cut pressure to discount heavily.

Coles did not comment.