One of Australia’s biggest retailers has threatened to shelve $85 million of investment in new liquor stores in WA if the State Government’s alcohol reforms are introduced.

Woolworths’ liquor retail arm Endeavour Drinks Group, which runs Dan Murphy’s and BWS outlets, has revealed plans for 35 new store developments over the next 10 years worth $85 million and hundreds of construction jobs would be stopped if the legislation passes.

Among other proposals, the reforms ban new liquor stores bigger than 400sqm within 5km of existing stores.

EDG general manager Shane Tremble said the reforms placed “arbitrary” restrictions on stores, given they limited proximity to other liquor retailers.

“We appreciate the Government has a genuine desire to reduce the harm caused by excessive alcohol consumption, but blocking new liquor licences based on arbitrary size and location restrictions won’t help achieve this,” he said.

“Instead, it will only serve to reduce choice and convenience for responsible consumers and block investment in new store developments set to create more than 600 local jobs.

“We call on the Government to engage with industry so we can work together on the development of sensible evidence-based reform that benefits all West Australians.”

Chamber of Commerce and Industry chief executive Chris Rodwell said the reforms contradicted the Government’s job-creation agenda.

“One industry is being singled out on the basis of an unsubstantiated argument,” he said.

“There’s no justifiable reason why the liquor retail industry should be singled out when smart regulation for the responsible service of alcohol is already in place.”

Racing, Gaming and Liquor Minister Paul Papalia said he was disappointed in EDG’s response. “Our amendments in no way prevent Woolworths, or any other company, from applying for a packaged liquor outlet licence, under the prescribed conditions,” he said.

The proposed laws are currently before the Lower House, where the Liberal Party has voted against the proximity clause.

The Opposition is set to follow suit in the Upper House, while the crossbench is awaiting a briefing before making a decision.