GRANTING OF CLUB CHARTERS

Press, Volume LXXXV, Issue 25998, 29 December 1949, Page 6

GRANTING OF CLUB CHARTERS

Commission’s Policy Outlined

The policy to be adopted by the Licensing Control Commission in determining whether a club will be granted a charter to sell liquor has been indicated by the commission in its decision on the four selected applications heard recently. The commission has decided, after hearing these applications, which were in the nature of test cases, that the main matters fnr consideration are:—the purposes of the club: its source of revenue; the suitability of its premises; and the number of its members. “The commission is in agreement with the view expressed by Mr F. C. Spratt, counsel for the New Zealand Alliance, that individual applications for these charters will raise different problems and that the commission should be careful not to make the grant in any particular case a precedent to he slavishly followed in others, and that it shoud be cautious not to lay down hard and fast rules from which it might be difficult to depart.” says the decision. “Nevertheless, there are some matters upon which the commission believes it would be well at the outset that it should try to enunciate certain broad lines upon which it can fix its policy in approaching the problem of charters generally.” The decision quotes the following definition of a club from the Licensing Act. 1908: “‘Club’ means a voluntary association of persons, whether incorporated or not, combined for promoting the common object of private social intercourse, convenience and comfort, and providing its own liquors, and not for purposes of gain.” and continues: “The words ‘not for purposes of gain’ in the above definition would appear to prevent in New Zealand the grant of a charter to what in England are known as proprietary clubs. Such clubs are clearly societies for the purposes of gain to an individual or individuals. “The conception that appears to underlie the definition of ‘club’ in the New Zealand act. and also the conception of such institutions under English law. is that a club is part of the private social structure of the community. The common objects of its members must point in that direction. It is formed for social intercourse, comfort. convenience and social amenities. The right to provide its own liquors is but one of the social amenities it enjoys. But any gain from the sale of liquor does not destroy the nature of the club providing it is merely incidental to its proper purposes. *Not a Trading Concern” “A club is not a trading concern; it is a social institution. It should have some element of permanence and the requirements of section 261 of the principal act regarding the election of members show that membership of a club is selective. It is a private, not a public institution to which anyone can belong merely by paying a subscription. Moreover, the existence of a club should not be dependent in any large measure on revenue from the sale of liquor. If that were so, then a club would fall into the category of an hotel rather than a private social institution. That is why, in the view of the commission, the source of revenue from both entrance fees, subscriptions, donations and endowments is an important matter to be considered when determining whether or not a club charter is justified. ‘•The next matter to which the commission will have regard is that of club premises. .The provision of suitable and adequate premises for the purposes of the club is all. important. The commission agrees with counsel fpr the Association of Chartered Clubs that this may well provide a key to the true objects of the club. Failure to have proper premises would certainly tend to lower the standard of chartered clubs. The better the conditions surrounding club life the better will be the prospects of social intercourse, convenience and comfort of members. The consumption of alcohol being an amenity merely incidental to the true purposes of the club, any conditions that would detract from comfort and convenience will not only be discouraged by the commission, but as far as possible prevented. The commission will also insist that proper arrangements be Jnrdg for hygienic conditions and sanitary arrangements, as approved by the Health Department and local bodies. Lockers and Golf Clubs

“In this connexion, the question of the running of a locker system in conjunction with a charter was fully discussed before the commission at the hearing on December 6. Counsel for the Christchurch Golf Club and counsel for the New Zealand Golf Association advocated some such system as being particularly desirable for golf clubs. The views of the Police Department, the Association of Chartered Clubs, the Licensed Victuallers’ Association, and the New Zealand Alliance were all opposed to it. “The commission, at the hearing, expressed its view that any such locker system is highly undesirable, open to abuse and impracticable. This opinion applies to all clubs. It is not necessary to repeat at length the views the commission then expressed about the matter, except to stress the following passage: ‘Whether or not such a system could be carried on within the lbw, whether or not under Section 77, Subsection (2) (c) the commission has power to determine that premises in which lockers are installed are unsuitable for the purposes of the club, the commission will in all cases seek the assurance of applicants for these charters that no such locker system is to be allowed. If it does not have that assurance, then that matter will be regarded as relevant and important in determining whether any charter is desirable or should be granted.’ Large Clubs Not Favoured “The commission feels that the grant of charters to clubs with very large membership should not be encouraged. It is fraught with the danger that the genial and comfortable conditions under which club life should be carried on would tend to disappear: that drinking conditions would deteriorate in such clubs; and

’ that membership would be sought pri- ' marily for the purpose of enabling members to obtain liquor. Again, the commission on this question is in agreement with the view put forward by Mr S. G. Stephenson, counsel for the Association of Chartered Clubs, that ‘too large a membership spoils the essential nature of the feeling of a social club, but it is impossible to be dogmatic or lay down any specific number of members for any given club.’ “When considering applications for club charters, the commission must take into account the public interest generally and will be careful to see that there is no indiscriminate granting of such charters. Honrs of Srle “It is clear that the Legislature has seen fit over a long period of time to see that in certain respects all chartered clubs must comply with the I licensing laws. In particular, chari tered clubs are in the same position las licensed hotels with regard to the ! hours for sale of liquor on club pre- ’ mises. The commission has no power whatever to alter those hours. “Unfortunately, in the past a great many unchartered clubs have adopted locker systems and sometimes open bar systems and have not observed the hours of sale of liquor which hotels are compelled to observe. “The commission cannot too strong:ly stress that all clubs which are i granted charters must strictly observe I the law in this respect. Breaches of i the law will endanger the charter. “Associated with the question of • sale hours is the problem of consumption of liquor on club premises or the right to sell liquor for consumption off the premises. All of the clubs w’hich now hold charters have the right to sell liquor fcr consumption off the premises. The commission believes that this is due to the fact that until the Licensing Amendment Act, 1948. was passed it was not possible Ito impose any conditions that liquor sold by a club must be sold for consumption on the premises only. By Section 76, Subsection (1) of the Licensing Amendment Act, 1948. it is now possible for the commission, if it thinks fit. to authorise the sale of liquor for consumption on the premises only. “The commission is not prepared to lay down any policy that it will pursue with regard tc this problem. Each application will have to be considered on its merits and the question determined in accordance with the discretion of the commission.” Five applications were originally selected for the test hearing. The Canterbury Aero Club withdrew its application before the hearing, and the application of the Christchurch Golf Club was adjourned sine die by request after the commission’s announcement regarding the locker system in association with a club charter. Of the other three applications the commission granted two and adjourned one sine die. Wairarapa Application The most important application was probably that of the Wairarapa Soldiers’ Hostel, which was opposed by the Masterton Licensing Trust. This was adjourned sine die Dealing with this application the decision says: “This application raised two or three matters of considerable importance. The first question was that of the jurisdiction of the commission to grant any charter within an area covered by the Masterton Licensing Trust Act, 1947. Counsel for the Masterton Trust agreed with the contention of counsel for the club that having regard to Section.? 5, Subsection 11) of the act, and the third schedule to the act. the jurisdiction of the Licensing Control Commission to grant charters in the area has been preserved. In other words, the operation of Part IX of the Licensing Act, 1908, as amended by the 1948 act has not been‘excluded in the trust area. Had Legislature intended that no such charters were to be granted, it would have said so. “The Masterton Licensing Trust opposed the grant of a charter to the Soldiers’ Hostel upon several other grounds. The main contention was that the trust had been granted a monopoly for the sale of all liquor within the trust area and should be protected accordingly. The answer to the suggestion that the trust is to have an absolute monopoly is to be found in the jurisdiction left to the commission to grant charters in the area. “Another view expressed on behalf of the trust was that the grant will raise economic difficulties for the trust. The evidence regarding this was very unreal and the commission is satisfied that the existence and operations of the trust are not going to be seriously affected by the grant of a charter to the Soldiers’ Hostel. ’’ After carefully considering the views of counsel, on matters arising out of the trust deed under which the hostel was constituted and operated, and the rules of the club, the commission thought that the application should stand adjourned. The application could be brought on for hearing when the hostel’s rules which, in the view of the commission did not conform to the requirements of the act, had been amended. The commission also recommended that the hostel become affiliated to the New Zealand Returned Services’ Association. to enable it to take advantage of the provisions of the Licensing Amendment Act, which resolved for R.S.A. clubs some of the difficulties and disabilities they formerly faced. In view of the exemptions specially granted to returned services’ clubs, the commission did not think it desirable that a returned services’ club should admit civilian members to membership. The application of the County Club, Hastings, was granted, and a charter is to be issued as soon as the locker* which are now in the club have been dispensed with.

A club charter will be granted to the Wellington Returned Services’ Association upon the completion of certain alterations. No lockers will be u♦ v and cllarter will provide that liquor is to be sold for consumpuon on the premises only.