Residents are frustrated by the problem of student drinking around Victoria University. Kelburn Park, where this picture was taken, is a popular drinking spot.

A boutique Wellington supermarket should not be able to sell alcohol because cheap, aggressively marketed booze makes anti-social student drinking worse, Victoria University's chief executive says.

Police and the region's medical officer of health also oppose Countdown's application for an off-licence at a new Cable Car Lane site, saying alcohol sales will fuel student drunkenness around Victoria University, The Terrace and Kelburn Park.

The Cable Car and surrounding access ways have been dubbed "Chunder Lane" by veteran anti-alcohol campaigner Bernard O'Shaughnessy, who told a licensing hearing on Wednesday that booze sales would encourage drinking, with students able to "chunder up and chunder down Chunder Lane".

MONIQUE FORD/FAIRFAX NZ Victoria University has come out in opposition to a liquor licence being granted to a new Countdown supermarket in Wellington's Cable Car Lane.

But some local workers have called the moniker ridiculous, saying opposition to the liquor licence was alarmist.

READ MORE:

* Police oppose Countdown liquor licence on students' 'Chunder Lane'

* Neighbours welcome booze ban at Victoria University of Wellington student hall

* Neighbours say students' out-of-control antics at VUW hall getting worse

* Mini supermarket for Wellington's Cable Car Lane

Victoria University chief executive Grant Guilford, who is also the vice-chancellor, gave his submission at the second day of a hearing of the Wellington District Licensing Committee. He said cheap, accessible and aggressively advertised alcohol so close to the 3000 students living in nearby halls of residence would fuel more noise, littering and occasional vandalism.

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"Alcohol is still at the heart of virtually all these complaints," Guilford said. "You can draw a straight line between alcohol harm and the two supermarket chains in this country."

Guilford said the university had to manage the societal problem of alcohol harm and that its opposition was on behalf of residents living in and around Kelburn Park.

The park, which has a cable car stop, has no alcohol ban, and Guilford feared students and other young people would use the cable car to buy alcohol and drink it in the park without having to haul it back up the steep hill.

"The ability to jump on the cable car and zip up [the hill] is a risk," Guilford said.

Originally the supermarket had sought an 11pm closing time, but changed that to 8pm due to concerns around problem drinking.

Guilford said the reduction in opening hours was a significant measure that was "greatly appreciated".

Kelburn resident Lynda Bowater, who lives near the Talavera cable car stop, said the alcohol-fuelled trouble and noise had worsened over the past five years and had made it difficult for her to sleep, especially on Wednesday nights and weekends.

"It's very distressing. At times it feels like I'm living in a student ghetto. Granting this licence will be like putting petrol on the fire," she said.

"For the few weeks in the year when the university isn't in session, it feels like paradise."

Fellow Vic Neighbours member Nicola Koptisch​ said residents were frustrated by what they saw as a lack of action from Wellington City Council, the university and police over the escalating issue.

The noise was often so bad she was forced to wear earplugs to sleep, she said. It was particularly bad when students left the halls after alcohol bans came in at what she called the "10 o'clock swill".

Vic Neighbours member John Blincoe was questioned by Countdown lawyer Duncan McGill over whether he would oppose a renewal of licence for the New World on Willis St.

Blincoe said he would be opposed, but not as strongly, as the Countdown site created "an alcohol conveyor belt" for students to buy liquor and transport it up the hill to Kelburn Park.

Countdown lower North Island operations manager Gordon Adams said outside the hearing: "The vast majority of our customers will be those working in and around Lambton Quay, who want to grab something for lunch, or pick up a few items on their way home from work.

"As a result of concerns raised by some stakeholders around issues specific to Cable Car Lane, we have revised our closing time to 8pm. We will continue to work with all Wellington stakeholders in relation to the liquor licence for our new Cable Car Lane store."

The hearing is expected to finish on Friday.