Liquor & Gaming NSW has laid down the law, ordering the closure of Manly landmark the Steyne Hotel for seven days.
On 12 September 2015 police discovered four underage girls drinking and purchasing alcohol in the bar of the Steyne, where they had been for several hours.
In February of this year licensee Stephen O’Sullivan plead guilty in Manly Local Court to seven counts relating to the incident. Support by the defence team and the Hotel’s high-profile owner Arthur Laundy saw the magistrate not record a conviction and the Hotel avoid a ‘strike’ under that disciplinary scheme for NSW licensed venues.
However, Liquor & Gaming NSW (formerly OLGR) had in late 2014 introduced new legislation to crack down on serving minors. The Minor Sanctions Scheme allows the Justice Department to order a hotel close for up to 28 days if “convicted” of serving alcohol to minors – even for a first offence.
Importantly, this process is separate from the court process and has its own criteria of a conviction, being: the issuance of a penalty notice, which is paid; issuance of a penalty notice, and a subsequent penalty notice enforcement order if not paid; or – a conviction of a relevant offence in court.
In the case of the Steyne, although the licensee and hotel were not convicted, L&G NSW issued penalty notices and $1100 fines to two female bar staff. One paid the fine issued, the other failed to do so, triggering an enforcement order by the State Debt Recovery Office.
L&G NSW reported to PubTIC that the closure order issued to the Steyne was the result of an inevitable review and decision by the Department of Justice, independent of payment of the fine.
“The hotel is being shut down because it served four underage females consistently over a two-hour period, not because a staff member didn’t pay a fine.”
Under the Minor Sanctions Scheme, the DOJ Secretary has authority to issue a punitive closure order to a licensed premise for the first offence. The offender’s compliance history and other mitigating factors including submissions may be taken into consideration.
The Steyne is the tenth entity to fall foul of the Scheme. It’s seven-day closure from Monday 4 July to Sunday 10 July is quite modest in the short history of rulings in the relatively new legislation. The first to hit the register was Temora’s Royal Hotel, which copped a 28-day closure for serving minors for not the first time.
“Over the past eight years the hotel in question has racked up 11 breaches including four incidents of selling to minors,” said Deputy Premier and Minister for Justice Troy Grant at the time.
L&G NSW confirm a number of factors were considered in the Steyne’s ruling.
“As part of the decision, the Secretary considered submissions from NSW Police and the licensee,” a spokesperson for the regulator told PubTIC.
“In considering the suspension period, the Secretary has regard to a range of matters including the seriousness of the offending conduct and the remedial action taken by a licensee to prevent the sale of liquor to minors recurring.”
The Hotel reports it has made considerable changes and check-measures since the occurrence, including a new licensee and a compliance officer, an overhaul of staff training to improve detection of intoxication and minors, reminders to staff each shift to request IDs, the engagement of a consulting firm to review security and train staff, and increased security hours Thursday to Sunday.
Arthur Laundy told PubTIC he is unimpressed to say the least at the severity of the order, which will cost both the Hotel and casual staff over the seven days, while the perpetrators receive no penalty for their actions.
“When we took over the place, it was number 2 in the State for violence,” said Laundy.
“We put in voluntary lockouts and cleaned it up, which cost a lot of money, and its now out of the system.
“Four girls came into a busy cocktail bar upstairs, with signs everywhere saying you cannot be there under 18, and two of our girls served them. OK – I’m guilty – but they knew they shouldn’t be there, but there’s no fine for them.
“Now we’re in the shit good and proper. It will cost me $100k for the week. It’s absolutely ludicrous.”
The AHA NSW similarly suggests the result is out of proportion, particularly in light of the Laundys’ work to improve the Hotel.
“Since they took ownership they have cleaned up one of Sydney’s landmark hotels, creating a well-run, family friendly venue that has received praise from the police and the community.
“To close down one of Sydney’s most recognised and well run hotels because of a first offence is grossly unfair.
“Regulators are doing all they can to make life for people working in the hotel industry more and more difficult.”
The Minor Sanctions Scheme is an “escalating” regime. While the first offence may see a liquor licence suspended for up to 28 days, a second within 12 months prompts automatic suspension for 28 days.
A third offence within 12 months of the second sees the venue’s licence automatically cancelled and the license holder disqualified from holding one for 12 months.
Of the 10 decisions recorded to date in the Minor Sanctions Scheme:
- Three have applied to hotels
- Five have applied to retail liquor stores
- Two have applied to restaurants
