Agenda item

The licensing officer presented their report.  Members had no questions for the licensing officer.

The trading standards officer, the applicant for the review addressed the sub-committee.  Members had questions for the trading standards officer.

The public health officer, supporting the review, addressed the sub-committee.  Members had questions for the public health officer.

The licensee was not in attendance.  They had advised the licensing officer that they would not be attending and had not requested a postponement of the hearing.

Both parties were given five minutes for summing up.

The meeting adjourned at 2.33pm for the members to consider their decision.

The meeting resumed at 2.36pm.

The chair advised all parties of the sub-committee’s decision.

RESOLVED:

That the council’s licensing sub-committee, having considered an application made under Section 51 of the Licensing Act 2003 by Trading Standards for the review of the premises licence issued in respect of the premises known as KG2P Convenience Store, Unit 2, Northchurch, Dawes Street, London SE17 2AQ having had regard to all other relevant representations has decided  it necessary for the promotion of the licensing objectives to revoke the licence.

Reasons

The reasons for this decision are as follows:

The licensing sub-committee heard from trading standards, the applicant to the review who advised that on 22 November 2017 trading standards with officers from Southwark’s night time economy team carried out a routine visit to the premises and found that the designated premises supervisor (DPS) on the premises licence no longer had any involvement with the premises.  A transfer of the DPS was completed later that day into the name the current DPS.

Displayed for sale in the premises for £10 a bottle was 75cl bottles of Alomo “bitter” (40% ABV). Duty including VAT is £10.35; 75cl bottles of Joy Dodi “bitter” (42% ABV). Duty including VAT is £10.86 and 75cl bottles of Agya Appiah “bitter” (35% ABV). Duty including VAT is £9.05.

Under the Duty Stamps Regulations 2006 the retail bottles of alcohol with an ABV of 30% or higher, packaged in sizes of 35cl and larger are obliged to carry a duty stamp. None of the drinks carried the duty stamps nor had details of any importer, indicating they had been smuggled in to the UK, which in itself, is an offence under Section144 the Licensing Act 2003.  The lack of duty stamps is also an offence under the Alcoholic Liquor Duties Act 1979 (as amended). Furthermore, offering these drinks for sale is an offence under the Consumer Protection from Unfair Trading Regulations 2008 for creating the impression by displaying the articles for sale that these drinks could be legally sold when they could not.  These bottles were subsequently seized. Furthermore, the Alomo and Joy Dodi bitters, being sold below the duty plus VAT is a breach of the mandatory condition 491 of the premises licence.

Karpackie and another customer a single can of Oranjeboom.  Both were told they were £2.00 per can and both customers challenged the sale price, saying, the correct price was £1.20. Because of this, trading standards officers carried out test purchases at the premises on 25 November 2017, when the premises licence holder and DPS was working behind the counter and sold a can of Karpackie for £1.20 when the duty plus VAT was £1.34.  The Officer asked what other beers were £1.20 and was told Oranjeboom (which had an inclusive duty price of £1.27) and Kestrel Super an inclusive price of £1.34. As a result, the officer

seized 31 cans of Karpackie, 30 cans of Oranjeboom and 76 cans of Kestrel Super.

When asked for the invoices for these drinks, the premises licence holder stated that he didn’t have the invoices there and wouldn’t be able to produce them, stating he got the Karpackie from a “Beer Shop” in East London and paid £19 for 24 cans, which equated to 79-pence per can; 55-pence below duty.

In advance of the meeting, he provided an invoice relating to the “African Bitters” headed JAP EXOTIC PRODUCTS, address 32 East Street, North Church SE17 2SV, dated 19 November 2017.  William Hill bookmakers is located at this address. The Wholesaling of Controlled Liquor Regulations 2015 introduced the Alcohol Wholesaler Registration Scheme to tackle alcohol fraud. From 1 April 2017 all retailers are required to purchase alcohol from HMRC approved wholesalers.

The premises licence holder/DPS was interviewed under caution on 1 December 2017 during which he accepted that he had run the shop since 2005.  He advised that customers had requested the sale of Alomo bitter, which was not available from any cash and carry and he did not carry out any checks on the seller that sold him it. He also knew that the purchase of £19 per tray for the beer was wrong, that the invoice for the African bitters was not genuine and also the sale of high strength beers it perpetuated the problem and made it more difficult for people stop their alcohol dependency problems.

The licensing sub-committee then heard from the officer for public health who raised concern over the obvious mismanagement and alleged criminal offences at the premises which undermined the prevention of crime and disorder licensing objective.  The officer advised that super strength beers and ciders are almost exclusively consumed by those with severe alcohol dependency problems. A key part of the public health strategy is to reduce consumption, like tobacco, through pricing. Selling the super strength beers and ciders significantly below the duty plus “on costs” completely undermines this strategy as well as making it unfair on other traders which run a legitimate business. Drinks such as Omo, Joy Dodi and Agya Appiah “bitters” often contain surrogate alcohol which carry extreme health risks.  The officer informed the sub-committee that the premises was located in the top 6^th percentile of deprivation in the country and located to a large alcohol recovery hostel housing extremely vulnerable people with alcohol misuse problems.

The premises licence holder/DPS was not present at the meeting and the licensing sub-committee was informed that he was due to attend court.  He had not requested an adjournment of the meeting and despite the court hearing, it was unlikely he would have attended in any event. 

The sub-committee were troubled that there was explanation offered to them by the premises licence holder/DPS concerning the management of the premises. From the evidence presented, the premises had operated for approximately 13 years with a DPS. He admitted that drinks such as Alomo bitter were illegal, as it was unavailable in any cash and carry. He was aware that thepurchase of cheap beer was wrong and the accepted that the invoice for the African bitters was counterfeit/forgery. A significant number of offences had been committed and the licensing sub-committee was informed that a prosecution file was being prepared. In all the circumstances, there was no other option available to sub-committee to promote the licensing objections but to revoke this premises licence.

In reaching this decision the sub-committee had regard to all the relevant considerations and the four licensing objectives and considered that this decision was appropriate and proportionate.

Appeal rights

This decision is open to appeal by either:

a)  The applicant for the review

b)  The premises licence holder

c)  Any other person who made relevant representations in relation to the application.

Such appeal must be commenced by notice of appeal given by the appellant to the justices’ clerk for the Magistrates’ Court for the area within the period of 21 days beginning with the day on which the appellant was notified by this licensing authority of the decision.

This decision does not have effect until either

a)  The end of the period for appealing against this decision; or

b)  In the event of any notice of appeal being given, until the appeal is disposed of.