Lola’s Pergola, Babylon Bar owner Matt Mulga fights with Liquor Commission over Monte’s Lounge licence cancellation

A Territory hospitality heavyweight is challenging a Liquor Commission decision to cancel the licence of a circus-themed Alice Springs bar.

Lola’s Pergola and Babylon Bar owner Matt Mulga is contesting a Liquor Commission decision to cancel the licence of his first hospitality venture in the Territory, Monte’s Lounge in Alice Springs. Picture: Che Chorley

A Top End hospitality heavyweight has claimed it was ‘unfair’ he lost his liquor licence over an ‘abandoned’ venue in the Red Centre.

Lola’s Pergola and Babylon Bar owner Matt Mulga is contesting a Liquor Commission decision to cancel the licence of his first hospitality venture in the Territory, Monte’s Lounge in Alice Springs.

Mr Mulga took the Liquor Act watchdog to the NT Civil and Administrative Tribunal on Friday, arguing it was unfair to strip the closed bar of its licence while he was trying to find a buyer for the business.

Mr Mulga sold the circus-themed watering hole in 2019 to Alice Springs Brewing Co’s Kyle Pearson, after moving to the Top End to set up popular Darwin venues Lola’s Pergola and Babylon Bar.

However when their business ‘These Clowns’ went into administration and the bar closed in December 2022, it sparked a 19-month saga where the NT Licensing authority was unsure who had ownership of the licence and responsibility for the outstanding fees.

According to a Commission decision from July, there was an agreement the Monte’s Lounge licence would return to Mr Mulga, who still owned the property.

Matt Mulga sold his circus-theme bar Monte's Lounge, in Alice Springs in 2019.

In the hearing, Mr Pearson said he handed over a signed application to transfer the licence, and understood Mr Mulga “was going to find another licensee to go in as he had told us there was someone ready”.

Licencing NT claimed it repeatedly emailed both Mr Pearson and Mr Mulga over outstanding licensing fees and to clarify who currently held the Monte’s Bar liquor licence.

“Failure to pay the outstanding fee within 28 days of receiving this letter will result in a referral to the Liquor Commission with a recommendation to cancel the licence,” it warned.

After eight months, Mr Mulga said he would organise the payment, claiming “we have several parties looking at the site and hopefully a transfer application will be submitted”.

While the fee was paid, the Commission said there was still no indication who the current licence holder was.

More than 450 days after Monte’s Lounge closed, a liquor inspector lodged a complaint, and two months later the Commission cancelled the licence.

Matt Mulga sold his circus-theme bar Monte’s Lounge, in Alice Springs in 2019.

The Commission was critical of the 18-months Mr Mulga did “nothing with that transfer in relation to this licence”.

“A liquor licence is a privilege, not a right, and licences must be utilised for the purpose upon which they are granted – not for holding ad infinitum,” it said.

Mr Mulga said he thought it was “unjust” and claimed Alice Springs businesses were “being punished quite severely” due to the social problems in the community.

“I was well aware I should transfer the licence. I possibly could have transferred it to myself, and I didn’t because I thought I had a purchaser,” he said.

In his NTCAT appeal Matt Mulga alleged he was not sufficiently warned that the failure to transfer the licence would result in its cancellation. Picture: Keri Megelus

In his NTCAT appeal Mr Mulga alleged he was not sufficiently warned the failure to transfer the licence would result in its cancellation.

“We have continued to try and attract a buyer for the premises which in Alice Springs is currently quite difficult,” he said.

“Eighteen months is not a long time for a licensed venue not to be trading and this is an unprecedented action by the Commission without prior warning.”

However in response to the NTCAT application the Liquor Commission said this was a long period for a licence to be abandoned, adding that Mr Mulga could still sell the property even without the cancelled licence.