An on-licence and off-licence renewal application by St Kilda Tavern (2002) Ltd was heard by Dunedin’s district licensing committee yesterday, after it was opposed by the Dunedin City Council’s chief licensing inspector.
The applicant company’s sole director, Ian Tolerton, was a previous operator of the St Kilda Tavern, but had not run the business himself for about two years.
Mr Tolerton still owns both the building and the land.
Committee secretary Kevin Mechen said the tavern had been able to continue operating, since Mr Tolerton sold the business, under temporary authorities issued to successive applicants.
A temporary authority allows a new applicant to trade on the back of an existing licence, for a period of up to three months, when a business changes ownership.
At the hearing, chief licensing inspector Tanya Morrison questioned why the applicant should enjoy the privilege of holding liquor licences when they would serve "no other purpose ... than that of commercial gain".
This was the third attempt by new owners to run the establishment on temporary authorities since Mr Tolerton sold the business, Ms Morrison said.
"So, I submit to the committee, quite simply, that enough is enough in terms of allowing this ongoing leveraging of temporary authorities to continue.
"The committee should not have any regard to commercial gain as the sole reason to renew these applications."
Ms Morrison said her understanding was that if Mr Tolerton’s application was declined, temporary authorities could no longer be leveraged and the owners would have to cease trading.
In May, former operator Kilda Hospitality Ltd had its on-licence and off-licence applications declined for issues including the availability of food.
The business had since been sold to JV Bars Ltd, and was granted temporary authorities in June that were set to expire next month.
A separate application by the company for its own on-licence and off-licence was currently being processed.
Mr Tolerton — who spoke at the hearing via audiovisual link — said it would be nice to see JV Bars be able to continue trading until its application was processed.
He was approached by four other local hospitality operators prior to JV Bars taking over the lease.
The building was not compatible with any business other than a bar, and he would only consider operating the pub himself "only out of dire necessity to keep a business there to sell".
But Ms Morrison said, even if he wanted to, the business was not Mr Tolerton’s to sell.
"It is JV Bars’, and JV Bars would be in the position in that scenario to sell it to whomever they wish or do whatever they wish with it, which could be open a restaurant, could be anything."
Medical officer of health delegate Aaron Whipp said a licence was a privilege.
"He’s only holding it for the purpose of selling the premise, but he hasn’t been operating it as a tavern.
"What are we doing to allow a licence to be renewed when the actual business isn’t actually being operated under that licence?"
The hearing was adjourned.
