ONE CONTROL.

Press, Volume LXI, Issue 18547, 24 November 1925, Page 8

ONE CONTROL.

OHINEMURI LICENSES.

A BIG COMPANY. TRADE SUBMITS A SCHEME. (sperm. TO "tbx priss.".i AUCKLAND, November 23. Active support for the scheme of licensing reform in Ohincmuri is promised by Mr A. S. Bankart. By a coincidence, Mr Bankart was actually propounding such a scheme to the owners of premises having priority rights in Ohincmuri on Friday at the same time as tho Auckland branch of the Licensing Reform League was meeting to pass resolutions suggesting to the Government and to him, as chairman of the Provincial Council of the licensed trade, that some form of licensing control be adopted. Mr Bankart is with the League in its efforts towards reform, and has already devised a scheme which will go as far in the desired direction as.the existing licensing legislation will permit. Briefly, the effect, of this scheme would be to limit the number of licenses to be granted in Ohinemuri to seven or eight. to administer or control these licensed houses by one company, which shall acquire existing houses and rights, to limit the company's profit to 10 per cent, per annum, and, after making necessary provision for depreciation, rentals, etc., to devote the profits in excess of 10 per cent, to making proportionate grants to 1 the local bodies ifi whose areas the net profits are earned. An instance, in Renmark, South Australia, where such amenities have been provided out of profits from municipal control of the licensed trade was quoted bv Mr Bankart.

Everybody Concerned. In an interview', Mr Bankart said that the carrying of restoration in Ohinemuri district presented an interesting problem, which was now exercising the minds of the owners of those premises which were licensed at the coming into force of no-license in 1908. Tho owners of tho sixteen premises were directly concerned, but he did not wish it to be inferred that it was only this small number of persons who wero entitled to examine the problem. On the contrary it behoved all classes in the community, and people of all shades of thought, to take a real and live interest in its solution, in order to give effect to the wishes of the electors declared by so pronounced a majority. It was to be noted, however, that a Magisterial recount had been demanded, and, although restoration had been declared carried, it was possible that the recount might alter the position. Supposing, however, that restoration was carried, and a licensing committee duly constituted, it seemed that the committee would have power in its discretion to grant a minimum of seven licenses and a maximum of fifteen, and that the actual licenses so granted would operate as from July Ist of next year. It was further provided that the committee, in determining applications for licenses, should give preference to applications of owners of the premises in respect of which publicans' liccnajs were in existence in November, 1908, when no-licenso was carried. Cn&nged Conditions. Mr Bankart pointed out that conditions as regards population had changed very much during the seventeen years that Ohinemuri had been under nolicense, and it would therefore be undesirable to grant licenses to the same places which had heretofore been in enjoyment of licensed houses. Further, tho increase of settlement in the agricultural areas" of the district required the consideration of the Licensing Committee. It was apparent from the voting at centres on the Hauraki Plains that settlors in that area would demand one, or possibly two licenses, and it would be wrong to refuse them in the circumstances.

It seemed to Mr Bankart that to avoid inflicting any injustice and to meet the legitimate requirements of the electorate, it would be -wise for the owners of the sixteen premises concerned to meet together and pool their respective interests. They could then decide upon a scheme .which would be acceptable to the Licensing Committee, and which would also meet all the reasonable requirements of the residents of the district and of the travelling public. Mr Bankart said he had discussed the question with those owners of premises Who were resident in Auckland, and at their request had invited all tho owners to meet him at Paeroa, there being a full attendance. Mr Bankart proposed'for the consideration of the meeting a pooling of all interests, and their sale to a company to be formed, and to be carried on under certain definite conditions] The company would acquire, for shares, all the interests, including preferential Tights to apply for licenses, the sites of the old premises, the buildings themselves, and the furniture and fittings contained therein, at a valuation to be arrived at as between the owner and tho company.

Placing the Licenses. The company would then, in consultation with prominent residents of the electorate, whose views could be obtained, if necessary, by a series of public meetings, decide upon the number of applications for licenses which it was desirable to make. In like manner it could be decided where such licenses should be placed, and it would be possible to ascertain what expenditure was. necessary'to bring those buildings, which were already in existence, into a proper state of repair, to improve those buildings, to furnish them in an adequate manner, to erect any new buildings necessary to give effeet to the applications, and to provide working capital for the carrying out of the undertaking. While not wishing to be bound by the opinion he expressed, Mr Bankart said he considered that the company to be formed would require a capital of about £G5,000. Under this proposal evevy owner of premises licensed in 1908 would receive his share in the new company, and could, therefore, if desired, continue to share in the progress of the company. In Mr Bankart's opinion it would be desirable that the company should be restricted in respect of its power to pay dividends, and that the residents of a district should share the financial benefits which it was anticipated would accrue to the company. He had suggested to the meeting of owners that the rate of dividend should be restricted to 10 per cent, per annum. From surplus profits, after the payment of such dividend, a reserve fund should bo created by allocations from time to time, but the total amounts that could be placed to the reserve fund should at no time exceed in the aggregate a sum equal to 50 per cent, of the paid-up capital. Th's reserve, he suggested, would be sufficient to safeguard the shareholders against, any losses which might accrue in connexion with the reerection from time to time of buildings, < the possible loss on buildings which might occur following a slump in mining ventures, upon the success of which some at least of the proposed company's assets would be dependent, against fire losses, and against an adverse vote at subsequent national option polls. The

reserve fund having been built up, all profits, after, the payment of dividend,' would then bo available for other purposes. Uses for Surplus Profits. He suggested that these profits should be distributed to the local' bodies for the residents in those parts of the district in which they were earned. His idea was that the funds so distributed should be used for providing social amenities beyond the revenues of local bodies, such as playing areas, swimming pools, the beautifying of existing parks or reserves, bands, hospitals, and so on. Of necessity, the direction of the company would be by iv Board representative of the shareholders. It would, however, bo advantageous in addition to provide that representatives of the residents should have seats on the Board of Directors. The Councils of the Boroughs of Waihi and Paeroa, and the counties administering those areas of the district outside these boroughs, should be empowered to elect representatives to]the Board without any share qualification. ' Thus would bo given that measure of public representation which he considered desirable. Mr Bankart pointed out that no power existed under the' Municipal Corporations Act or the Counties' Act by which local bodies were.. empowered to enter into such a business as-hotel-keeping, but these powers might subsequently be granted, and therefore the Articles of Association of the suggested company would require to give the directors power to sell the whole or a part of its undertaking to a local body, which by a vote of the ratepayers, might desire to acquire those assets situated within its boundaries.

Owners Sympathetic. The meeting of owners unanimously expressed its sympathy with the ideai conveyed by .the proposal, and set up committees for Waihi and Paeroa to go thoroughly into tho suggestions in detail, to consider ways and means, and either to adopt the scheme with or without amendments, or to bring down other proposals which it was felt would bo acceptable, not only to the owners of tho premises concorned, but to the electors of Ohinemuri and to the travelling public. There the matter rested for the present, but Mr Bankart hoped that on his return from Wellington, and within a fortnight, the committees would be in a position to call another conference, the outcome of which, he believed, would be the formation of a company upon the broad lines he had laid down. A meeting of the executive of the National Council of the Licensed Trade of New Zealand, of which he was chairman, would be held shortly, and in the event of the Magisterial recount confirming the declaration that the restora tioh of licenses had been carried in Ohinemuri, would assist in every way to arrive at a solution which would prove satisfactory to the public, and to the best interests of the licensed trade of New Zealand.