An on-licence application for Indigo Room, in Moray Pl, was heard by Dunedin's district licensing committee yesterday.
It was opposed by police, the medical officer of health and a licensing inspector.
The applicant, Aika & Co 2016 Ltd, was sent licence renewal documents and an invoice in September, a report to Dunedin’s district licensing committee said.
But the renewal application was not submitted and the licence expired on October 15.
Meanwhile, the licensing inspector’s report said the applicant had not paid their annual fee for nearly 10 months, while holding the previous licence, despite "several reminders" from Dunedin City Council staff.
At the hearing, Indigo Room co-owner Charles Chieng said management acknowledged not responding on time had "not been the best or effective way of dealing with the procedures".
This year had been "extremely difficult" in terms of running a business, he said.
Their previous licence had not been suspended nor cancelled, and they were committed to getting everything done on time and putting systems in place to run the business "sufficiently and more responsibly".
Council chief licensing inspector Tanya Morrison said "procedural reasons" from the council meant the applicant’s payment of the annual fee was not followed up beyond standard reminders.
She became aware of the outstanding fee towards August this year, at which point she made contact and swiftly made the payment.
But between this invoice being issued in September 2023 and when she made contact with the applicant in August 2024, "technically speaking, the licensee was trading without a current licence", Ms Morrison said.
"Albeit I don't think it was of anybody's knowledge, or active knowledge, anyway.
"So, from a technical standpoint, that would likely mean some unlawful sales had no doubt occurred."
It "quite simply ... shouldn’t have happened," she said.
Section 287 of the Sale and Supply of Alcohol Act 2012 states a licence for which the annual fee is not paid within 30 days after it is due is suspended.
Committee member Lee Vandervis said it seemed a "fairly unusual" situation that there had been a lapse in following up, but questioned whether responsibility for paying the licence and having it valid sat with the applicant rather than the authority chasing them up.
Alcohol harm prevention officer Sergeant Steve Jones said it was incumbent on the applicant to have the appropriate systems in place to manage every part of their business.
Ms Morrison urged the applicant to be more proactive.
"If you are successful in gaining a licence, be proactive, lead the way and put your best foot forward at all times.
"Because if the licence is granted, you will be on our radar, we will be monitoring you and we want to see the best that you've got."
While council’s procedures had "fallen down" after reminders were sent out, the onus was on the applicant to know when their licence was expiring and when fees were due, she said.
"We appreciate that times are tough, but you've got to make contact.
"To not say anything is not an option."
