Mr Power gave a presentation to the annual conference of the New Zealand Institute of Liquor Licensing Inspectors at The Heritage hotel.
Mr Power, also Minister of Commerce and Minister Responsible for the Law Commission, told the inspectors alcohol legislation was a challenging issue for the Government.
He said the Law Commission's review of liquor licensing laws needed to strike a balance between the freedom of New Zealanders to drink responsibly and the need to address social problems related to excessive alcohol consumption.
"We must fundamentally recalibrate the entire regulation framework to achieve that balance," he said.
He was not going to be "the Grinch that stole Christmas".
"I'm not going to go into people's homes and punish them for having a beer with their 17-year-old while watching the rugby," he said.
However, the law needed to protect the population from alcohol-fuelled mayhem.
He said 60% of offenders were under the influence of alcohol at the time of committing crime and up to 70% of police work was alcohol-related.
He said he favoured keeping the legal alcohol age at 18 but liquor licence conditions and bars' hours of trading needed to be reviewed.
However, Queenstown's unique status as a party town had to be taken into account. "Any changes need to be flexible to weigh in these factors."
Key stakeholders and affected parties would be consulted before the commission's recommendations were adopted into law.
He had requested the commission speed up its review.
The commission's report was now due in March next year, one year earlier than planned, he said.
Law Commission president Sir Geoffrey Palmer said he visited some of Queenstown's licensed premises and had breakfast with Queenstown Lakes Mayor Clive Geddes to discuss the review.
Queenstown was a unique environment with a "terrific" number of licensed establishments for its size.
However, he said Queenstown would not be given any more liberal liquor laws than other parts of New Zealand.
"You have to give weight to the permanent residents. I don't think a party town should be allowed to become irresponsible."
Queenstown residents had the right to live with law and order, despite its party town reputation being an attraction for tourists.
Sir Geoffrey said he had received feedback from the inspectors at the conference on issues including the role of district licensing authorities.
The conference began on Wednesday and finishes today.
The Law Commission has been reviewing the laws governing the sale and supply of liquor since August 2008.
A discussion document is out for public consultation until October 30.
Advertisement
