OLGR REAFFIRMS PUB TRANSFER DELAYS ARE ‘APPLICANT ERROR’

In the wake of further accounts of long delays in transfer of pub assets in Queensland, the state’s liquor regulator says the process typically takes less than two months, and delays are the result of applicant errors.

In discussions with Queensland’s Office of Liquor & Gaming Regulation (OLGR), the department confirms the typical processing time for liquor licence transfers – with gaming – is seven weeks.

“The median processing time for liquor licence transfers with associated gaming is 43 days,” replied an OLGR spokesperson.

“However, we recognise that some applications may take longer.”

It is said that the majority of applications involving gaming are missing critical information, which causes additional delays as OLGR is forced to follow up with the applicant for information, and await further responses and action.

OLGR has offered examples of common problems associated with the receipt of applications. These include:

Incomplete forms – examples being when:

• forms are not lodged with all required personal details for all relevant parties involved
• lack of accompanying information where a person has been bankrupt or has involvement in a company that has been liquidated
• failing to indicate whether the name of the premises will change

Illegible content within forms, and missing attachments or information. This can include missing:

• signatures, RSA and RMLV certificates, gambling policy, source of funds info, finance approval, ABN and ASIC extracts, trust deeds, business and freehold contracts, franchise and management agreements
• Payment of fees where required for police checks

Omissions require the relevant licensing officer to prepare correspondence to the applicant(s) requesting the missing information be supplied.

Under the Gaming Machine Act 1991, the transfer of ownership of gaming machines involves a new and separate application, and is a separate process to that of a liquor licence.

These applications are subject to “stringent probity processes and compliance checks” in Queensland, which can also cause delays in processing applications.

Examples of hindrances include:

• Checks to establish company structure
• Credit and police checks
• Confirmation of evidence of adequate funding
• Review of contractual documentation
• Determination that any third party associated, which may require further checks
• Review of previous compliance history

OLGR reports that where a known licensee entity has a new company director, shareholder or associate, the licence can be transferred based on the established suitability of the known parties before the new individuals’ suitability has been completed.

The probity process and compliance checks can mean OLGR needs to request more from applicants, resulting in further delays, but the regulator confirms it does not undertake new suitability checks into known directors, shareholders or associates.

In response to PubTIC’s enquiries last year into the subject of Queensland’s long process, OLGR suggested it was able to rapidly issue Interim Authorities, but despite suggestions these are used by “a large cross-section of applicants”, none of our sources had ever used one, relaying that the temporary Authorities are typically not acceptable to financiers, who won’t release funds until security over the bricks and mortar is firmly in place, upon settlement.

In 2019 OLGR conducted a review to identify general impediments to the efficiency of licence transfers, identifying that “a high proportion of delays were attributable to applicants” and the most common issues being incomplete forms and a lack of supporting documentation.

In FY22 the regulator recorded a 12 per cent year-on-year increase in the number of transfer applications received.