Patricia McCarthy has been in hot water many times over the operation of her liquor stores — including selling to underage customers, selling without a licence and court proceedings.
Her daughter Corrina McCarthy now operates the Bottle-O stores in Andersons Bay and Kaikorai Valley and is seeking to renew their liquor licences, but authorities are worried Mrs McCarthy is really running them.
The two separate off-licence renewal applications, by McCarthy Enterprises Ltd and Jethro Holdings Ltd, were heard by Dunedin’s district licensing committee on Monday.
Both applications were opposed by the Dunedin City Council’s chief licensing inspector Tanya Morrison and medical officer of health delegate Aaron Whipp, who cast doubt on the suitability of the applicant.
Police also opposed the Kaikorai Valley application.
Patricia and Kenneth McCarthy were listed as directors of both companies at the time the applications were lodged, but had since been replaced by Ms McCarthy, while continuing to be sole shareholders of each company.
At the Andersons Bay hearing, alcohol harm prevention officer Sergeant Steve Jones said Ms McCarthy was running the premises “quite well from a police point of view”.
“The actual operation of the premises itself under Ms Corrina McCarthy, police do not have an issue with.”
Police did, however, have an issue with the “undue influence the controlling interest has over the premises’ operation”, Sgt Jones said.
Ms Morrison said Mrs McCarthy had until recently been known as “the face of the business”.
There had been similar patterns of behaviour at all licensed premises she had been in control of, including absentee records and “at times difficult conversations” around obtaining accurate information. She was still concerned about Mrs McCarthy’s involvement and it was unclear what actual control the shareholders may or may not have over the business.
“That, to me, is the big question of the day, really.”
Mr Whipp said company directors were employed by companies’ shareholders and received direction from them.
“In this … situation, the shareholders are mum and dad.
“It’s like a front, in lesser words, that they could direct their daughter in the way that the business could move.”
Ms McCarthy said her mother “no longer has anything to do with the businesses”, and an agreement to sell the business had been signed last week.
She had been the manager at the liquor store for the past 16 years and had a deep understanding of the daily operations and responsibility required to run it safely.
“While becoming a director wasn’t something I initially sought or desired, I’m fully committed to and confident in my ability to fulfil this role.”
Significant steps had been taken to improve operations at the store, including promoting a long-serving staff member to a manager position and increasing the price of single-serve 500ml liquor in line with police recommendations, she said.
Similar concerns about company structure and the role of shareholders were heard at the Kaikorai Valley hearing.
Ms McCarthy said she had been solely running that store “without my mother’s interference”, for much of this year.
“Aside from, once again, popping in to do the banking, she doesn’t make any decisions, and all staff have been made aware that they run anything by me.”
Both hearings were adjourned so more information could be provided about the companies’ shareholding.
tim.scott@odt.co.nz
