The alcohol licensing regime is set for a shake-up, with the government agreeing to remove annual fees, simplify applications and extend renewal periods.The Ministry for Regulation's review of the hospitality sector found, in some cases, the cost of obtaining a licence outweighed the economic benefit, or delays led to lost profits and staff being let go.Regulation Minister David Seymour said bad regulation was killing businesses."If we are going to unlock New Zealand's potential, we need to let Kiwi businesses get on with business," he said.The ministry has made nine recommendations, with the government accepting eight:Reform alcohol licensing fees, including by removing annual fees, reducing renewal fees and introducing inspection feesSimplify licence applications and renewal processesExtend renewal periods for some alcohol licencesClarify and simplify the process and requirements to get an alcohol licence for the first time, including making licensing criteria more specific with a simpler application formChange District Licensing Committee arrangements, including allowing them to merge and setting specific membership and training requirementsRemove current licence types and replacing them with a single risk-based alcohol licensing framework over timeIntroduce a nationwide information system about licences, certificates, compliance activity, performance, alcohol-related crime, incidents and health effectsMake one existing agency and the corresponding Minister responsible for alcohol licensing regulationsThe ministry recommended the changes be implemented by 2029, but Associate Justice Minister Nicole McKee said she would like to see them in place much sooner, where practical."Regulators need to stop treating hospitality businesses who want to sell alcohol like common criminals," she said.This parliamentary term has seen a loosening of alcohol restrictions, with a member's bill allowing premises that are already open on Good Friday, Easter Sunday, Anzac Day morning and Christmas Day to sell alcohol under normal licence conditions passing this year.Separately, the government is amending the Sale and Supply of Alcohol Act to make it more difficult to object to licence-related applications.That legislation would also allow hairdressers to supply small amounts of alcohol to customers without a licence, allow breweries, meaderies and distilleries to charge for samples, make it easier for venues to stock zero-alcohol drinks and allow restaurants with onsite retail spaces to sell takeaway alcohol.The justice committee reported back on that bill in August.Hospo sector pleased with changesHospitality New Zealand said the sector had been clear for a number of years about the pressures and challenges it faced when applying for or renewing alcohol licences, including inconsistent decisions, long timeframes and growing fees.Chief executive Kristy Phillips said the Ministry for Regulation's recommendations would make a "measurable improvement" in how hospitality businesses interacted with the regulatory system."It's pleasing to see ministers and the review recognise the role and contribution of hospitality businesses to the economy, and the efforts they put into creating sociable environments for the community," she said.