LOWER BEER DUTY

Auckland Star, Volume LXV, Issue 204, 29 August 1934, Page 10

LOWER BEER DUTY

MRS. McCOMBS , ATTACK

"GIFT TO THE BREWERIES."

MR. COATES UNREPENTANT,

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day.

Vehemently attacking the liquor trade, Mrs. Elizabeth K. McCombs (Labour, Lyttelton), in the House of Representatives laet night, assailed the Government for reducing- the duty on beer. She described the reduction, as ridiculous, and said the effect had been an increase in the value of brewery shares.

Beginning her speech, Mrs. McCombs eaid she wanted to protest against the reduction in the duty on beer. ; .

The Minister of Finance, Mr. Coates On what?

Mrs. McCombs: On something you don't know anything about.* If you don't know anything about it now, you wall after you have listened- to me;

She added that she had not seen that the Tariff Commission had recommended a reduction in the beer duties, and no ipublio announcement was made about it.

Mr. Coates: But the brewers never made any representations at all.

Mrs. McCombs: The Minister said the ibrewers never made any representations at all-

Mr. Coatee: Be careful what you say. Mrs.McCombe: I will. Nothing I can eay will bo too strong in'condemning this-proposal.'' The ; whole thing has Ibeeri done without any adequate reason ■being given. The paltry excuse that (has been offered —it would be ludicrous if it were not so serious—is that the export of hops would be assisted.

"She added that 'between 1932 and 1933 the export of Jiope ihad increased three times in value and volume. The proposal meant a straight-out gift to the brevnng industry, and it must have done something., to provoke such generosity. The remission 'Would mean that .more ■people would be placed on No. 5 scheme.

Rise in Brewery Shares. Mr. Coates: The remission will be made. Mrs. McComibs: I have no doubt of that. When the Minister says it will be made, -we know it will be made. He knows -who his friends are, and we can expect him to stand by them. She added that the gift was 'being made to the breweries, an industry ■which represented one-thousandth of one per cent of the exports of the Dominion. The effect of the Government's proposal already -was that 'brewery shares had increased in- pri"^-■ but., the. concessione protected no one. Money 'ttia.tt-would be epent' along vwholepome .-channels would ibe. diverted ';to the, .liquor trade, which employed anenVfor thfc'. value of its output -thap a'ny Qtfer trade in the Ddminjon...""lt. is theinmost, lawless -and eelfish. trade in, the community," ehe said. "It is , a'.^rade , ,lwhicji flourishes on the -weakness and vice of the community,;.a s from •which few people can be protected. If this concession is going to have any v effect on the community, it is going to increase misery and suffering, vice and crime." Mr. J. A, Lee (Labour, Grey Lynn): Do you think it would be better to reduce the duty on tea? -

Mrs. McCombs: If it was taken off tea ,it would be doing something to benefit the working people of the community. This benefit is now given to the brewers, and I very much doubt if it will even be passed on to the hotelkeepers.

Mr. Jull in Defence. Eeplying to Mrs. McCombs later, Mr. A. E. Jull (Government, Waipawa) eaid he was entirely disinterested in breweries, not having held shares for- the past 15 years. He did not know if, the members who had attacked the brewers were criticising speculation in brewery shares because they were sorry they had not speculated. Before the war the excise duty on .beer was 3d a gallon. Before the reduction of 3d was made in the Budget it was 1/6, and even withtho reduction the duty was five times the pre-war rate.-. The suggestion that the manufacturers of beer would be allowed to retain: £112,000 as the result of the reduction swas absurd.

Mr. W. E. Barnard (Labour, Napier) Who will get thefbenefit?

Mr. Jull: The .consuming public. Mr. Barnard: Nonsense. Mr. Jull: It will be passed on to the 'Consumers. w

Mr. Barnard: What! On a pint of beer?

Mr. Jull: Pint, pots were put in the cellars long ago. 'It will be through the increased size ofy-glaeses that the.consumers will get the benefit.

He recalled that last year's British Budget contained/ only one concession, that of a reduction of 8d in the beer duty. While th&e might be a large number of people:who held views similar to those of Mrs. McCombs—

Mrs. McCombs; -At least 50 per cent of the population. Mr. Jull: While there might be a very large number, it is probable there is a very much larger s number who do not hold these views. - It is difficult to persuade people that..the drinking, of a pint of beer is not harmful.

The people who had been engaged in the brewing trade had suffered very severely during the last few years, and it was quite right,' in a time of depression, that the things which could be done without should be left alone. The duty reduction, however, would help to revive the. trade.