Minutes:
The
Chair introduced those present and outlined the procedure to be followed at the
meeting.
A report of the Head of Community Protection was
presented in relation to two applications for
a summary review of two
premises made by Cleveland Police under Section 53A of the Licensing Act 2003.
A summary review hearing was held on 13 December
2019 when the Committee determined to impose interim steps, taking immediate
effect, in respect of both premises. A
copy of the minutes from that meeting were attached at agenda item 3.
The meeting was adjourned in order for the
Committee and Parties to consider a further evidence bundle submitted at the
meeting by the Premises Licence Holder.
At 11.25am, the meeting reconvened.
The legal representative acting on behalf of the
applicant, Cleveland Police, presented the case in support of the application
to review. This included statements, and
verbal evidence at the meeting, from Cleveland Police; Middlesbrough Council’s
Licensing Authority; Environmental Health and Immigration Office.
Members of the Committee and the Premises Licence Holder
had the opportunity to ask questions of the Responsible Authorities.
The legal representative acting on behalf of the
Premises Licence Holder presented the case in response to the application to
review. Members of the Committee and the
Responsible Authorities had the opportunity to ask questions of the Premises
Licence Holder.
All parties were afforded the opportunity to sum
up.
It was confirmed that there were no further questions
and all interested parties other than the Officers of Legal and Democratic Services
withdrew, whilst the Committee determined its decision. The parties were advised that the Committee’s
decision and reasons would be sent to them within five working days.
DECISION – APPLICATION TO
REVIEW PREMISES LICENCES
Authority to Act
1. The
Licensing Authority received an application from the Chief Officer of Police
for a summary review of the Premises Licences in
respect of the Banana Leaf, Linthorpe Road, Middlesbrough and I China Wholesale Greta Street Middlesbrough under Section 53A of the Licensing Act 2003
(“the Act”).
2. The
Licensing Sub Committee noted under Section 53A(2)(b) of the Act on receipt of
such an application from the Police it must review the Premises Licences within a period of 28 days after the date the application
was received.
3. The
Licensing Committee noted under Section 53C of the Act it must hold a hearing
to consider the application for the review and any relevant representations. It noted it must take such steps as it
considers are appropriate for the promotion of the licensing objectives.
4. The
steps were: to do nothing; modify the conditions on the licence;
exclude a licensable activity (either permanently or temporarily up to a
maximum of three months); suspend the Premises Licences
for a period of up to three months; remove the Designated Premises Supervisor;
or revoke the Premises Licences.
5. The
Committee considered the Act, Government Guidance made under Section 182 of the
Act and the Council’s Statement of Licensing Policy. It also considered the reports and appendices,
additional statements and information and the representations from the Parties
to the hearing.
6. The Review was considered on its
own merits.
Decision
7. The
Licensing Sub Committee decided it was appropriate to revoke the Premises Licences in respect of the Banana Leaf and I China
Wholesale Limited for the following reasons:-
Reasons
Control of the Premises
8. With
regard to the Banana Leaf, the Premises Licence
Holder had been in place since 12 December 2012. Their partner was the Designated Premises
Supervisor (“DPS”) from that date, however, the Premises Licence
Holder was the current DPS.
9. With
regard to IChina Wholesale Limited’s Licence, the Premises Licence
Holder was the sole director of the company from 23 February 2018. Prior to that, the Premise’s Licence Holder’s partner had been one of the directors of
the company from 1 May 2016 to 23 February 2018.
Illegal Working and associated serious
criminality
10. Illegal
working had taken place at the Banana Leaf and IChina
Wholesale Limited. This alone was considered
very serious and sufficient and appropriate for the Licences
to be revoked in order to promote the prevention of crime and disorder. However, the seriousness of illegal working
is greatly aggravated by other serious issues at the premises or linked with
the management of the premises.
11. In July
2017, both the Fire Brigade and Environmental Health found evidence of people
sleeping in the Banana Leaf. They
witnessed three mattresses with bedding and toys in the upstairs area of the
premises. The Police advised this was
indicative of exploitation. A
Prohibition Notice was served to stop any sleeping on the premises. In addition there were inadequate means of
escape. Following an audit it was found
that a number of fire regulation deficiencies required an enforcement
notice. The Committee did not find the Premises
Licence Holder’s submissions that the mattresses were
there simply so her employees could “nap” during breaks to be at all credible
and contradicted the information from the Authorities.
12. On 17 November 2017, following a visit to IChina Wholesale Limited, a male attempted to run away but
was apprehended. This male was an
illegal worker. A civil penalty was
raised. Employees at the premises told Officers that other illegal workers were
engaged at the premises.
13. On 17 May 2019, following a visit to the Banana Leaf, a male
attempted to run away but was apprehended.
This male was an illegal worker. A civil penalty was raised. The
Premises Licence Holder could not provide any
employee documentation at the premises and Officers overheard that the Premises
Licence Holder would often go to the airport to pick
up people.
14. Earth
Spa and Wellness Centre at 94 Newport Road was not licensed but was referred to
in the Police evidence as linked to the issues, on the whole, of illegal
working and exploitation. It was
confirmed that on four separate occasions, different lone female foreign
nationals in the UK illegally were found on the premises on 12 April, 2 May, 1
June and 9 December 2019. The Police
informed the Committee it had intelligence the premises was being used as a
brothel. It advised the set up was
conducive to such use and when inspected they found durex lubricant near to the
massage table. However, the Committee considered that in any event lone female
foreign nationals in the UK illegally were found on the Premises.
15. The
Premises Licence Holder denied any links to the
premises, provided evidence of a lease, an unsigned statement from an
individual who claimed to run the business legitimately and that the Premises Licence Holder was just a friend, together with utility
bills in his name.
16. However,
the Committee noted the lease was to the Premises Licence
Holder’s partner for 5 years from 14 February 2017 and gave their home address.
The other male was one of the people arrested for involvement in the
activities. It noted the Premises Licence Holder was recorded as the business owner in a
statement of an officer from Revenue and Benefits. The business rates bill submitted by the
Premises Licence Holder, addressed to the property, does not alter the information in the statement. There had been two deliveries on different
dates of boxes containing disposable hand towels used for massage tables
addressed to the Premises Licence Holder. The Committee did not consider that Amazon
would make a mistake twice. The Premises
Licence Holder’s partner, although in prison and
recently deported, was still named as responsible for the account for the
premises from Northumbrian Water and a letter addressed to another name, but
believed by the Police to be the Premises Licence
Holder’s partner, dated 19 April 2019, was found on the premises.
17. The
Premises Licence Holder was arrested on 9 December
2019 following allegations of criminality linked to Earth Spa and Wellness
Centre, 94 Newport Road Middlesbrough. At that time a female who was illegally in the
UK was at her home address and also arrested.
Also £16,000 of cash unaccounted for was found at the Premises Licence Holder’s home.
The Committee, in view of all of the information, did not accept that
the Premises Licence Holder was simply giving
hospitality to a friend, in any event a person not permitted to be in the UK
was staying at her home.
18. After
considering the matter on the whole, the Committee considered there was a
pattern, evidence of people sleeping in the Banana Leaf which could be
indicative of exploitation, illegal workers found in both premises, a person
illegally in the UK being found in the Premises Licence
Holder’s home and four people illegally in the UK being found at other premises
which the Premises Licence Holder and her partner were
linked to.
19. On 21
January 2018, the management, including two Directors of IChina
Wholesale Limited, one being the Premises Licence
Holder’s partner, carried out a serious violent attack after the victim
cancelled an order with the Company. The
attack resulted in the Directors being imprisoned. The Premises Licence
Holder’s partner was given a three and a half year prison sentence. Shortly after the attack, the Premises Licence Holder became the sole Director and her partner and
the other Director resigned on 23 February 2018. The Premises Licence
Holder was not involved in the attack, however, the Committee considered that
the attack was clearly linked to the operation of IChina
Wholesale Limited and seriously undermined the promotion of the prevention of
crime and disorder.
20. The
Committee considered therefore, the Premises Licence
Holder was linked to criminality at the Licensed Premises and wider criminality
which was undermining the objective of the promotion of the prevention of crime
and disorder.
21. In
addition to involvement in illegal working and links to exploitation and
criminality there had been other unlawful serious problems at both IChina Wholesale Limited and Banana Leaf.
Other Unlawful incidents
22. IChina Wholesale Limited - Licensing Officers discovered
alcohol had been displayed for sale and unlawfully sold following a visit on 6
April 2018 as the Premises Licence permitting the
sale had been suspended in 2015. This
was despite the Premises Licence Holder being
informed by officers on 3 April 2018 that it was unlawful to sell alcohol
whilst the licence was suspended. In addition, licensing officers were informed
that there had been no DPS in place for 12 months which also made it unlawful
to sell alcohol. There were breaches of
conditions whilst the alcohol was being displayed and sold, namely, no incident
book, completed refusals records and no age verification policy displayed.
23. Banana
Leaf – On 2 August 2017, unsafe work was being carried out at Banana leaf, it
involved work at a height, use of dangerous equipment and risk of personal
injury. The work was so unsafe a
Prohibition Notice was required to prevent any further work. The Committee did not accept that burden of
responsibility was on the builder, the Premises Licence
Holder was responsible to ensure safety compliance and failed to take any steps
to ensure this.
24. Banana
Leaf – Following an application on 29 November 2019 for the third floor of the
premises to have a Premises Licence for the sale of
alcohol and regulated entertainment, on 7 December 2019, officers visited the
premises at around 9.30pm. Officers
found on the third floor a group of people dinking, numerous bottles of alcohol
in the area and Karaoke being sung.
Officers also confirmed that people had been smoking in the area and the
evidence showed that smoking in the area had taken place for a longer
period. The Premises Licence
Holder claimed the people present were friends who had brought their own
alcohol and none had been sold. A discussion
took place in the Committee about a bill in which the items were identified as
food and soft drinks. However, the
Committee remained concerned that optics in the area were not full. It was seriously concerned that smoking had
been permitted which in itself was a criminal offence. In addition, the fire doors were bolted shut
whilst people were in the Premises. The
Committee considered that allowing the area to be used in such a way, was
indicative of continued clear failings in management and lack of regard to
lawful and licensing requirements.
Conclusion
25. The
Committee considered the operators of the premises had been engaged in serious
criminality which, amongst other matters as set out above, involved the use of
illegal workers. The actions of the
operators of the premises had seriously undermined the promotion of the
prevention of crime and disorder. In
addition the premises had breached health and safety, smoking and licensing
laws, all of which were criminal matters further undermining the prevention of
the crime and disorder objective and public safety. The Committee considered it must prevent premises
licences from being used to further crime. Nothing else but revocation would be
appropriate.
26. The
decision to revoke was in accordance with Government Guidance and the Council’s
Policy and there were no good reasons to depart from it.
Appeal
27. The
parties had the right to appeal the decision to the Teesside Justices Centre
Teesside Magistrates Court, Victoria Square, Middlesbrough within 21 days from the date on which they
were notified of this decision. However,
if they did decide to appeal the decision and the appeal was dismissed, the
Council would apply for its costs in defending its decision.
DECISION - REVIEW OF
INTERIM STEPS
Authority to Act
1. The Licensing Authority received an application from
the Chief Officer of Police for a summary review of the Premises Licences in respect of the Banana Leaf, Linthorpe
Road, Middlesbrough and I China Wholesale Greta Street
Middlesbrough (“the Premises”) under Section 53A of
the Licensing Act 2003 (“the Act”).
2. On 13
December 2019 the Licensing Sub Committee took the interim steps to suspend the
Premises Licences in respect of both Premises pending
a full review for the reasons set out in the decision notice dated 13 December
2019.
3. The
Committee held a hearing commencing on 7 January 2020 and decided to revoke
both Premises Licences.
4. Under Section 53D of the Act, the
Licensing Committee must review the Interim Steps imposed on 13 December 2019.
5. It must consider whether the interim
steps were appropriate for the promotion of the licensing objectives; consider
any relevant representations, and determine whether to withdraw or modify the
interim steps taken S53 D (2).
Decision
6. After
carefully considering all of the information and the matter on its own merits,
the Committee decided it was appropriate that the interim steps of suspension
of the Premises Licences remain in place in order to
promote the prevention of crime and disorder.
The reasons for this decision are as follows:-
Reasons
7. The
Committee considered the operation of the premises continued to cause a serious
risk to the objective of the promotion of the prevention of crime and disorder.
8. At different times,
illegal workers were found on the Premises.
9. Prior
to the illegal workers being found on the Premises, it appeared people had
being sleeping in the Banana Leaf, indicative of exploitation.
10. The
Police visited Earth Spa and Wellbeing on Newport Road on four separate
occasions, each time a different lone foreign national female illegally in the
UK was at the Premises. The Police
believed the premises was operating as a brothel. The Police believed the management of the
Premises was linked to Earth Spa.
11. The
Premises Licence Holder’s husband / partner who at
the time was a Director of IChina Wholesale Limited
in 2018 committed a serious violent attack on a customer.
12. When
the Premises Licence Holder was arrested in relation
to Earth Spa, a female, who was illegally in the UK, was found at the Premises Licence Holder’s home together with unaccounted for cash in
the sum of £16,000.
13. The
matter continued to be investigated by the Police for serious criminality.
14. The
Committee was wholly satisfied the Licences should
remain suspended, for the reasons set out for the revocation of the Licences and to deter and prevent authorised
licensable activities furthering crime and exploitation.
Appeal
15. If a
party was aggrieved by the decision regarding the interim steps they may appeal
the decision to the Teesside Justice Centre, Teesside Magistrates Court,
Victoria Square Middlesbrough within 21 days from the date they were notified
of this decision. An appeal against
interim steps should be heard within 28 days from the date of
application/complaint. However, the Council would claim its costs in defending
it decision against any appeal.