Local Government New Zealand, the national body representing councils, has urged Parliament not to make it mandatory for those seeking liquor licences to provide social impact evaluations.
The social services select committee is hearing submissions on a bill by Labour MP for Manuwera, George Hawkins, that aims to give communities more control over the number of liquor licences in their area.
Local Government New Zealand's vice-president, Wellington Mayor Kerry Prendergast, says the organisation agrees that the scope for affected parties to object to liquor licences needs widening.
But Ms Prendergast says there should be discretion about the requirement on District Licensing Agencies to produce social impact reports.
She says many local authorities believe it is an excessive provision that may put unnecessary extra costs on them.