Executive summary

		The focus of our audit
		Alcohol misuse has a significant impact on our community. It costs millions of dollars each day through lost labour, crime and health care.
		Alcohol misuse is closely linked to crime and anti-social behaviour. This includes assault, malicious damage and offensive behaviour. Excluding domestic violence incidents, almost one third of alcohol-related assaults occur on licensed premises such as hotels and clubs.
		There are three main ways to reduce alcohol-related crime on or near licensed premises. These are: § preventing patrons from reaching undesirable levels of intoxication, through the responsible service of alcohol (RSA) § introducing strategies that reduce the opportunity for crime such as extra transport at peak times and when premises close § responding to incidents after they occur to prevent them from escalating and to deal with offenders.
		Reducing alcohol-related crime is a challenging task. Many factors affect crime rates including the weather, the number of premises, access to transport, the age of patrons and time of day. Therefore it is important that government agencies and licensees work together to implement these strategies to reduce crime.
		In 2003 the NSW Government held an alcohol summit which proposed new strategies to deal with alcohol-related harm. This led to many of the recent liquor reforms which will simplify how the industry is regulated.
		This audit aims to assess how well the NSW Police Force (Police) and the Office of Liquor, Gaming and Racing (OLGR) work with licensees to reduce alcohol-related crime and anti-social behaviour. Specifically we wanted to find out whether Police and OLGR: § work with licensed premises to promote RSA? § take appropriate action for RSA and related breaches?
		By ‘licensed premises’ we mean hotels, bars and clubs. By ‘RSA and related breaches’ we mean offences such as permitting intoxication on licensed premises, and selling alcohol to an intoxicated person.
		Audit opinion
		In NSW alcohol-related assaults have almost doubled over the last ten years. In 2006-07 there were 20,475 alcohol-related assaults excluding domestic violence incidents, up from 10,305 in 1997-98. In fact, the number of these assaults is increasing at a faster rate than total assaults. Incidences of alcohol-related malicious damage and offensive conduct have also increased, rising by 87 and 70 per cent respectively.
		However we found that the number of alcohol-related assaults has reduced or stabilised in the last two years in about 14 per cent of Police local area commands. Of the four commands we visited, alcohol-related assaults had stabilised in two, and significantly reduced last year in another. OLGR has also had some success in reducing assaults in a number of licensed premises.
		It is difficult to determine what works best to reduce alcohol-related crime. However we found that OLGR and Police were more likely to succeed where they used a range of education and enforcement strategies to change licensee behaviour and help reduce intoxication.
		We found that OLGR is working with licensees to promote and enforce RSA, recently adopting an early intervention approach. But it is only in the last couple of years that it has focused on reducing intoxication.
		Police approach to working with licensees varied. Some commands assisted licensees to comply with the law, but overall they tended to focus more on enforcement. Police work with licensees should include more initiatives to prevent breaches from occurring.
		Both Police and OLGR enforce the liquor laws. While they have discretion in applying the law it is important that they do so with reasonable consistency. However we found inconsistencies within Police, and between Police and OLGR, in how they dealt with liquor offences. For example, one licensing officer might take a licensee to court for a practice that another issued a warning for. This left licensees we spoke to sceptical about whether the laws were being applied fairly.
		With OLGR taking a more active role in enforcing the law, there is an increased risk of duplication. Both agencies now need to clarify their roles and responsibilities to reduce this risk and achieve a consistent approach across the state. This should be a priority given that the new liquor reforms commence mid 2008.
		Patrons also need to be educated about responsible drinking and their obligations under the liquor laws. Although patron education campaigns have been run in a number of regions, more is needed statewide.
		Police and OLGR recognise these challenges and have projects underway to address many of these issues. These include training initiatives and a new licensing database. Police also plan to adopt a new way of working with licensees which matches their response to the risk rating of the hotel or club.
		Both Police and OLGR report that most licensees try to do the right thing and that a minority cause problems. Therefore it is crucial they continue to work together to minimise the harm caused by alcohol and make our communities safer.
		Key audit findings
Chapter 1 What is alcohol-related crime?		Crime and anti-social behaviour are often linked to alcohol misuse. Many incidents such as assaults, malicious damage, offensive behaviour and theft are alcohol-related.
		Excluding domestic violence incidents, almost one third of alcohol-related assaults occur on licensed premises such as hotels and clubs. Many incidents occur on Friday and Saturday nights between midnight and 3 am and are committed by males aged between 18 and 25 (see appendix 2).
		There are three main ways to reduce alcohol-related crime on or near licensed premises. These are preventing patrons from reaching undesirable levels of intoxication, introducing strategies that reduce the opportunity for crime, and responding to incidents after they occur.
		The NSW Office of Liquor Gaming and Racing (OLGR) and NSW Police Force (Police) regulate the liquor industry. A key role is to ensure compliance with the liquor laws, including the Liquor Act 1982 (the Act).
		A key objective of the Act is harm minimisation. This refers to harm associated with alcohol misuse, such as violence and other anti-social behaviour.
		The Government recently reformed the State’s liquor laws. Some of the key reforms include: § the Licensing Court to be replaced with an administrative-based system § the responsibilities of the Licensing Court and Liquor Administration Board to be transferred to a new authority § expanded powers of the Director of Liquor Gaming and Racing such as imposing and varying licence conditions.
Chapter 2 Do Police and OLGR promote RSA?		OLGR and Police must work with licensees to promote RSA and harm minimisation. Without this there will be limited impact on levels of intoxication which increases the risk of alcohol-related crime.
		We found that both agencies assist and support licensees to meet RSA requirements. OLGR provides licensee self-assessments, runs workshops, and presents at liquor accords meetings, which are formal partnerships with licensees. Police also use liquor accords to discuss licensing issues, however they tend to educate mainly through enforcement. For example, police may discuss intoxication and RSA with licensees when responding to incidents or inspecting licensed premises.
		Both Police and OLGR use information on alcohol-related crime to target high-risk premises. However neither can access each other’s information therefore cannot form a complete compliance record of premises. This may improve with the roll-out of a database which will consolidate data from a number of agencies.
		One of the key mechanisms for raising new issues and sharing ideas with licensees are liquor accords. OLGR also uses a case management approach to work with high risk licensees. Police have a mixed relationship with licensees, citing licensees need to maximise sales from alcohol as the biggest barrier. Licensees we spoke to said that one of the key barriers was inconsistent approaches to licensing, both within Police, and between Police and OLGR.
		While neither agency has a formal licensing course at present, most licensing staff interviewed had completed training in the past. However there is no course for new officers, and we found that general duty police could benefit from better knowledge of licensing laws. The Police Local Area Commands (LACs) we visited recognised this and were trying to address this gap.
		Police and OLGR do not know whether their education and support initiatives work in reducing alcohol-related crime. This is because it is difficult to monitor the results of these strategies in isolation, so they use crime data to review their overall approach to licensing.
Chapter 3 Do Police and OLGR enforce RSA?		OLGR and Police are better able to change licensee behaviour if they take appropriate action for RSA and related breaches. This means action must match the offence, be timely, and bring about the best results.
		We found that both agencies use a range of enforcement options to deal with RSA and related breaches. In accordance with its policies, OLGR issues more severe penalties for matters such as intoxication, generally issuing a penalty notice or taking court action. Police also reported that they match penalties to the seriousness and frequency of breaches, however could not provide information to clearly demonstrate this. Police approach varied between LACs, with some appearing to take a zero tolerance approach. This may be due to the absence of enforcement guidelines which outline how breaches should be dealt with.
		Police and OLGR have taken more enforcement action against licensees in recent years. For example, in 2007 police initiated court action for 130 matters regarding permitting intoxication, an increase of over 400 per cent since 1999. In 2006-07 OLGR issued 23 penalty notices for permitting intoxication, up from one in 2003-04.
		We found that OLGR dealt with breaches in a timely manner, taking action for breaches within two weeks for most cases we reviewed, however Police were unable to easily provide data on processing times. Penalty notices take less time than other enforcement measures such as prosecution. Some licensing staff said that gathering evidence to prove intoxication for prosecution could be time consuming.
		Police and OLGR monitor crime data, particularly assaults, as part of their overall approach to licensing. However they reported that it was difficult to determine which aspect of enforcement works best, with many saying enforcement alone would not change licensee behaviour and reduce crime.
		The last ten years show an increasing trend in alcohol-related crime statewide. The result was the same for LACs visited, although they had reversed this trend for some crime categories in the last two years. Police report that the statewide increase in alcohol-related assaults is partly due to better reporting of alcohol-related crime, which occurred when the alcohol-linking program rolled out statewide mid 2004.
		OLGR has had mixed success in reducing alcohol-related crime in licensed premises, with more positive results achieved in the last six to nine months.
		Recommendations
		We have made a number of recommendations designed to improve how Police and OLGR work with licensees to reduce alcohol‑related crime. These include: § developing a standard approach to enforcing the liquor laws § delivering patron education campaigns § removing barriers to working with licensees § better guidance on how police should deal with breaches, and assist and support licensees on RSA § better training for general duty police.
		Specially, we recommend that the NSW Police Force and Office of Liquor Gaming and Racing:
		§ establish a working party to: - clarify roles and responsibilities under the new liquor laws (page 41) - develop a joint approach to licensing that includes both education and enforcement strategies, by December 2008 (page 41) - develop a risk-based annual program which identifies the areas and licensed premises to be targeted as part of its licensing operations, which is reviewed at least quarterly, by December 2008 (page 27) § ensure that all relevant information about licensed premises is accessible to each agency so they can better target high-risk premises (page 25) § review the impact of their operations to determine what works best in the long-term to reduce alcohol-related crime, and disseminate and share good practice (page 39) § develop and deliver by July 2010, statewide patron education campaigns on the liquor laws, including the consequences of breaking the law for both patrons and licensees (page 22) § assist NSW Health in developing and implementing statewide public education campaigns on responsible drinking (page 22) § continue to work with the Australian Hotels Association and ClubsNSW to ensure licensees are informed about the alcohol-linking project and other new initiatives, including how data is used (page 30).
		We recommended that the NSW Police Force: § by December 2008 introduce guidelines which outline the joint approach to licensing including how police should: - work with licensees to prevent breaches from occurring by using a range of education and support initiatives (page 22) - respond to licensing breaches including enforcement options (page 41). § by December 2008 analyse the appropriate resource requirements to tackle alcohol-related crime, and allocate these resources accordingly (page 28)
		§ by July 2009 implement the following training initiatives: - provide training in liquor licensing as part of general duty officer recruitment program (page 31) - reinstate and deliver a formal training course on licensing (page 31) - run an abridged version of the licensing course for general duty police where needed to ensure they have the licensing skills and knowledge to assist them to carry out their duties (page 31) - deliver a mandatory training package to LACs which includes information on the liquor reforms and the functions of each agency (page 41).
		We recommend that the Office of Liquor Gaming and Racing: § by July 2009 monitor the effectiveness of liquor accords to identify strategies that reduce alcohol-related harm, such as crime and anti-social behaviour (page 29) § by December 2008 include on its website the results of enforcement action taken against licensees by Police and OLGR for breaches of the liquor laws (page 42).
		Response from NSW Office of Liquor, Gaming and Racing
		I refer to your correspondence of 28 March 2008 regarding the Performance Audit conducted by your Office in relation to working with hotels and clubs to reduce alcohol-related crime. I have consulted with my Executive and the prepared responses are attached for your consideration.
		Recommendation: NSW Police and OLGR: · Develop and deliver by July 2010, statewide patron education campaigns on the liquor laws, including the consequences of breaking the law for both patrons and licensees · Assist NSW Health in developing and implementing statewide public education campaigns on responsible drinking. Agency Response: Agreed.  OLGR is chair of the Liquor Working Group a working group within the Crime Prevention Steering Committee, one objective of which is to consider strategic issues such as a state-wide patron education.  The Director of Liquor and Gaming has powers under the New Liquor Act to require a prescribed standard message on discount liquor advertising and promotions.  The Director is currently consulting with industry and government stakeholders, including NSW Health to develop a common branded message with a utility throughout the state and other states. The OLGR Liquor Accord Delivery Unit is examining the effectiveness of various patron communication initiatives already implemented throughout the 144 liquor accords.  Additionally, OLGR has commenced a research project examining the ways to maximise the capacity of accords, particularly having accords engage wider in the community on such issues as patron education programs.
		Recommendation: That by December 2008, Police and OLGR develop a risk-based annual program which identifies the areas and licensed premises to be targeted as part of its licensing operations, which is reviewed at least quarterly.
		Agency Response: Agreed.  A risk-based business program presently exists that will be enhanced to be an annual joint agency initiative. However, OLGR’s strategic enforcement initiatives are inherently short-term to medium-term responses designed for long term outcomes within a dynamic environment.  In this respect, hot spot venues and regions will be identified through ongoing various information gathering initiatives including Alcohol Related Crime Information Exchange program, Bureau of Crime Statistics and Research, and partnerships with Local Government.  In the past six months, hot spot enforcement strategies have been refined such that they are monitored weekly and will align with the new and flexible framework within the new Liquor Act. Additionally, OLGR is a key partner in all of the Crime Prevention Partnership programs which is developed and implemented within a strategic and evidence based framework.
		Recommendation: That by July 2009, OLGR monitor the effectiveness of liquor accords to identify strategies that reduce alcohol related harm, such as crime and anti-social behaviour. Agency Response: Agreed.  OLGR’s Liquor Accord Delivery Unit rolled out 35 workshops to accord licensees in 2007-2008.  The workshops entitled Engineering Solutions focused on strengthening the capacity of local accords to identify local problems, gather reliable information, develop and implement sustainable strategies, and finally report outcomes. The workshops provide licensees and regulators with the tools to assess how well liquor accords respond to local issues, and more particularly how effective each implemented strategy is in achieving the objective.  As part of the extra resources to implement the new Liquor Act, the Liquor Accords Delivery Unit will be allocated a five new officers who will support accords throughout New South Wales in implementing, monitoring and reporting strategies and objectives.
		Recommendation: That OLGR and Police review the impact of their operations to determine what works best in the long term to reduce alcohol-related crime, and disseminate and share good practice. Agency Response: Agreed.  OLGR operational procedures now ensure that NSW Police are informed of the strategies and outcomes more often and more formally.  These new procedures will be more effective with the roll-out of the ARCIE program, development of the OLGR web site, and within the framework of the new Liquor Act.
		Recommendation: That NSW Police and OLGR establish a joint working party to: · clarify their roles and responsibilities under the new liquor laws · develop a joint approach to licensing that includes both education and enforcement strategies, by December 2008. Agency Response: Agreed. A senior NSW Police officer has been appointed to the Gaming and Liquor Licensing Implementation Committee, an OLGR established working group to manage the change arising from the new legislation. A joint interagency working group of key operational police and OLGR officers has been established to facilitate a cohesive and seamless joint roll out of enforcement and educational strategies.
		Recommendation: That by December 2008, OLGR include on its website the results of enforcement action taken against licensees by Police and OLGR for breaches of the liquor laws. Agency Response: Agreed. OLGR already informs stakeholders of the outcomes of compliance programs in various ways, including the industry Liquor and Gaming bulletin, What’s New, and E-Accords Weekly, both of which are e-mail bulletins direct to accords, licensees, key partners, and through direct feedback in formal personal briefings to liquor accords.
		It is also the intention of the Director to post the outcome of liquor law enforcement operations and formal decisions made, but taking into account operational imperatives and the secrecy provisions of the legislation.
		(signed) Carol Mills Director-General Department of Arts, Sport and Recreation Dated: 11 April 2008
		Response from NSW Police Force
	Thank you for the opportunity to participate in the performance audit Working with hotels and clubs to reduce alcohol-related crime.
	Within the State Plan, NSW Police is the lead agency for R1 Reducing rates of crime particularly violent crime and R3 Reduced levels of anti social behaviour.
	Alcohol related crime is a key focus of NSW Police Force Executive Team. It is in the interest of our community that issues relating to alcohol related crime are dealt with on the basis of broad public policy rather than on an agency specific approach. A whole of community and Government approach is therefore crucial to work together to reduce crime that is caused by alcohol misuse.
	Research funded by the National Drug Law Enforcement Research Fund ‘estimating the short term cost of police time spent dealing with Alcohol related crime in NSW’ estimated that $50 million was spent on salaries by NSW Police in 2005 to address alcohol related crime, which is equivalent to 1000 full time police.
	As you have indicated in this report there are over 14,227 active licensed premises in New South Wales which present some challenges in relation to managing alcohol related crime. Non compliance from licensees and licensed premises is restricted to a small portion of licensed premises.
	NSW Police Force has active representation on over 150 active liquor accords to ensure sound working relationships with licensed premises are maintained and local solutions are collaboratively identified and implemented.
	NSW Police Force now has 6 Local Area Commands (LACs) participating in Crime Prevention Partnerships with a further 10 LACs soon to commence, enabling a collaborative approach by local government agencies to drive down crime, particularly assault in public places which may be attributed to alcohol.
	During the 2007 election year the NSW Government committed to appointing an additional 30 police officers to tackle alcohol related crime. This election commitment will now be delivered ahead of time to increase the capacity of NSW Police Force to respond to alcohol related crime and ensure specialist officers and proactive management strategies are in place.
	Using the additional 30 officers we are in the process of creating the Alcohol and Licensing Enforcement Command (ALEC) to coordinate and tackle alcohol related crime and to support local licensing police. By creating a centralised alcohol focused Command we will address some of the challenges that have faced NSW Police Force in the past that are outlined within this performance report.
	ALEC will also allow NSW Police Force to formalise an ongoing operational relationship with the Office of Liquor, Gaming and Racing (OLGR) to manage alcohol related crime. This renewed working relationship will allow a coordinated approach to regulation (OLGR) and enforcement (NSW Police Force). We hold the view that enforcement, can in part, be educative. That is not to say that this is the sole function of NSW Police Force in dealing with spectrum of alcohol related crime.
	The operational arm of ALEC will conduct targeted operations in consultation with those LACs identified as having high risk licensed premises using the ‘top 25 license premises in NSW’ risk management model, reviewing and responding to requests for assistance lodged by LACs for support at major events and work with OLGR compliance officers to develop and exchange expert knowledge and experience.
	Through ALEC NSW Police Force will ensure that a targeted and coordinated approach is deployed to manage licensing operations with OLGR. ALEC will also allow formalisation of consultation with peak bodies in the liquor and hospitality industry such as the AHA whom we currently meet with quarterly.
	The investment of in excess of $2.3 million into the Alcohol Related Crime Information Exchange database will enable NSW Police Force, OLGR and Office of State Revenue to consolidate, exchange and share accurate data relating to alcohol related crime. This database will go live on the 28 April 2008.
	In relation to education, I acknowledge the training challenges outlined by the Audit Office in relation to licensing training. We have been working towards development of training specific to alcohol related crime in recent times with the dedication of a principal tutor to research, develop and deliver alcohol related crime training statewide.
	Currently students enrolled in the Associate Diploma of Policing Practice (ADPP) receive education in regards to intoxication and the effects of alcohol and its implications when studying street offences and communication issues. This is conducted through theory and case study training and assessment.
	During a probation year recruits are required to undertake both practical and reflective assignments relevant to their experiences and particularly in regards to street offence alcohol related crime.
	NSW Police force is currently preparing new alcohol related crime training for all police recruits, general duties and licensing police to facilitate the implementation of the new 2007 Liquor Bill reform.
		NSW Police Force has appointed a Principal Tutor specific to Licensing training. This officer is currently preparing the new licensing officers course and is aiming for a pilot course to commence late in 2008.
		All officers are to complete the Alcohol Related Crime mandatory training package by July 2009, which will incorporate the application of licensing skills.
		In relation to ‘education for licensees to prevent breaches’ a licensee of a hotel must have completed a Hotelier’s Licence course which contains a Liquor Act module, and also a Responsible Service of Alcohol course prior to becoming a licensee. Any education given by Police of OLGT should be supplementary to the not insignificant education already received by people working within the liquor industry.
		I look forward to working with you again in the future.
		(signed) A P Scipione APM Commissioner of Police Dated: 11 April 2008