NEWCASTLE'S late-trading venues will be forced to close no later than 3am and not let new patrons in after 1am under new rules to be introduced before the Easter long weekend.
In a 13-page ruling released yesterday, Liquor Administration Board chairman David Armati cited the city's "high alcohol consumption culture" when reducing trading hours and implementing the lockout.
Residents applauded the decision but hoteliers criticised it, saying some establishments would not survive the new laws and the city's reputation as an entertainment hub would diminish.
The new licensing laws will mean that the seven city pubs with 5am closing will have to shut at 3am, and four establishments which shut at 3am have been told they will have to close their doors at 2.30pm.
It will be forbidden to sell alcohol 30 minutes before closing time and no patrons will be able to enter venues after 1am.
Mr Armati said staged closing times might help get patrons onto public transport and into taxis, although he showed concern that the "transport options currently available will be sufficient".
The decision will be reviewed in three months.
Newcastle MP Jodi McKay will meet police, transport officials and council officers on Monday to try to improve bus and train timetables ready for the changed trading hours beginning at midnight on Thursday.
Newcastle local area police commander Charles Haggett said the ruling would help Newcastle become safer.
"I am hoping it is going to provide the impetus in the battle against violent and anti-social behaviour which we have been confronted with in the last few years," Superintendent Haggett said.
Publican Roly de With, licensee of the late-trading Fanny's nightclub, said some businesses would not be able to continue trading with the new conditions.
'`What it will do is stop people coming to the city because the perception will be that Newcastle is locked down," Mr de With said.
"And that stifles what I believe is a vibrant entertainment culture.
"Stopping the serving of alcohol at 2am is not going to stop people drinking out of wine casks as is the case now.
"It will punish the good people; it is like one person in the class being bad and the whole class having to stay in."
Resident Tony Brown, who said he represented more than 100 residents and businesses at the board hearings, said he hoped the "industry abides by the umpire's decision".
"No doubt this is a major step in the right direction and we look forward to a much safer city," he said.