"There are better ways to make sure licensees maintain high standards."
Mr Teahan said there were more sophisticated ways to ensure bars were run well than "taking one moment in time and seeing whether that particular staff member didn't forget the instructions and processes that are in place".
"From time to time because of the pressures they're under ... they forget and some mistakes are made."
Mr Teahan said licensed premises were "churches" compared to what they were 20 years ago when problems with gangs and heavy drinking were far worse.
Last November Jonathan Damian Samia's general manager's certificate was cancelled after he was convicted of stealing $1000 from pokies at the Horse and Hound.
He was fined $400 and sentenced to 150 hours' community work.
And in August a Carterton woman's manager's certificate was suspended for four weeks after she was convicted of drink-driving.
Barbara Marie Hill, owner of Devine at Clareville, recorded a breath-alcohol reading of 734mcg - nearly twice the legal limit - when stopped by police.
The Ministry of Justice said the most common breaches by bars were selling alcohol to minors, having intoxicated patrons on premises, and breaching licence conditions.
Ministry acting general manager of special jurisdictions Marguerite Delbet said the Sale and Supply of Alcohol Act - set to be enacted later this year - included measures to address these problem areas and a scheme to deal with persistent non-compliance.
"Licensees or managers who commit offences three times within three years can lose their licence or certificate."
But critics of the new legislation say the Government missed an opportunity to change the nation's harmful drinking culture.
Hospitality NZ chief executive Bruce Robertson said the hospitality industry was being unfairly targeted for New Zealand's drinking problem.
Enforcement decisions currently being made by the LLA would now be made by local licensing committees with the power to impose conditions and restrictions on operators, adding compliance costs without reducing alcohol harm.
However, on-licence premises now sold less than 25 per cent of all alcohol, he said.
"Simply applying more conditions to an industry that's actually operating pretty well now is not going to influence the behaviour of New Zealanders who drink, when most of the irresponsible alcohol consumption is away from licensed premises.
"If you want to change people's behaviour, then you need to send a signal that it's not ok to get drunk."
Hospitality NZ wanted being drunk in a public place to be made an offence, which would put more responsibility back on Kiwi drinkers.
Currently, the only people held responsible for drunkenness were licensees who sold alcohol to intoxicated patrons or allowed them into bars, Mr Robertson said.