The Liquor Licensing Board will wait until its next meeting in December before deciding whether to grant an additional package liquor license to an operator in the Owen Robert’s International Airport departure lounge.
The application, brought by Melba Nixon, owner of Melba’s Duty Free, is being opposed by two other liquor retailers at the airport; Bodden Freeport Duty Free Liquors and Tortuga Duty Free Liquors.
Tortuga CEO Robert Hamaty said duty-free operators are already hurting due to a downturn in tourist arrivals combined with new restriction on carrying liquids on international flights.
He pointed to 2006 reports in the Caymanian Compass of declining alcohol and perfume sales for duty-free operators following security measures introduced in the wake of a foiled terror plot to use liquid explosives hidden in hand luggage.
Representing Bodden Freeport Duty Free Liquors, Attorney Waide DaCosta said the departure lounge is already adequately serviced by three package liquor licenses. The cost of plane tickets and jet fuel has curtailed the number of people travelling to the Cayman Islands, and there is only a finite number of customers in the departure lounge, he said.
Mrs. Nixon was represented at the meeting by Bodden and Bodden lawyer Sherri Bodden. Mrs. Bodden told the four-member board Mrs. Nixon has been a respected retailer at the airport for 20 years.
She plans to sell more local liquor, such as Blackbeard’s products, and customers will benefit from greater choice, argued Mrs. Bodden.
She said objections to the application seemed to be based on a fear Mrs. Nixon would cut the size of the pie remaining for Bodden Freeport and Tortuga.
But this, in itself, is not a good reason for opposing the application, Mrs. Bodden continued. The Liquor Licensing Board must consider whether a new license will be a benefit to the public at large, she said, adding that the public would benefit through increased competition.
Mrs. Bodden challenged Mr. Hamaty over tourist arrival figures, saying tourist arrival numbers would have been a lot less when he originally began selling duty-free liquors at the airport.
A decision on the application is expected at the Liquor Licensing Board’s next meeting in December.
Earlier in the meeting, Mr. DaCosta caused a stir by calling into question the impartiality of board member Lynn Bodden-Smatt, who works with Sherri Bodden.
Mrs. Bodden had stressed earlier that she was representing Mrs. Nixon in a personal capacity, having known her for a number of years.
As an attorney, Mr. DaCosta said he had an obligation to raise the issue as a matter of course.
‘There is a glaring conflict of interest, or at least a potential conflict of interest, when a partner of a law firm on a board has to rule on an application from another partner.’
Mrs. Bodden-Smatt fired back that she would not have her integrity challenged. The Liquor Licensing Board discussed the issue prior to the meeting, she said, and had decided that she proceed in light of the small size of the board (which was absent member Bernice Richards), and the fact Mrs. Bodden was appearing in a personal capacity.
Mr. DaCosta said he was satisfied with the explanation, but the issue had to be raised.
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