For the administration of licensing in relation to the activities in connection with which licences are required under Part II of this Act there shall be a licensing authority for each district and islands area.

The licensing authority shall be the district or islands council within whose area the activity is, or is to be, carried on.

Notwithstanding subsection (2) above, a district or islands council shall not be exempt from any requirement to have a licence or any other obligation under this Part or Part II of this Act and a licensing authority shall have power to entertain and dispose of an application by a district or islands council for a licence or in respect of a licence held by them.