CLOSING pubs in Cape York indigenous communities would be racist and un-Australian, a Cairns court has heard.

Aurukun and Kowanyama shire councils were yesterday granted a temporary injunction by the Supreme Court to keep their liquor licences until Justice Stanley Jones makes his final decision on their fate.

The licences were due to lapse tomorrow, after amendments to the Liquor Act this year meant indigenous councils were prohibited from holding them.

The councils' barrister Douglas Campbell, SC, told the court the effect of the liquor laws was to impinge on the human rights of people in remote communities, and amounted to racial discrimination.

"It restricts their right to participate in that very Australian custom of going to the pub," Mr Campbell said.

He said representatives from the Queensland Police Service had told the Government they were opposed to the cancellation of the licences and he tendered a submission sent by the Aurukun Police Station.

The police submission detailed concerns that a pub closure would encourage sly-grogging and lead to an escalation of violence in the community.

It said residents of Aurukun would move to either Weipa or Coen if their tavern was closed, leading to about 300 displaced people.

Mr Campbell said the councils only wanted their licences extended until private licensees took over, which could be possible by the end of the year.

However, Mark Plunkett, the barrister representing the Office of Liquor, Gaming and Racing, said there was no explanation for the delay in setting down an application just 72 hours before the expiration of the licences.

"You should not grant any relief at all to the applicant in this case," Mr Plunkett said.

Justice Jones is expected to hand down his final decision in coming weeks.

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