ASHBURTON TRUST

Press, Volume XCIII, Issue 27896, 18 February 1956, Page 10

ASHBURTON TRUST

OFFICIALS GIVE EVIDENCE WHOLESALE OPERATIONS OPPOSED The Ashburton Licensing Trusts two hotels in Ashburton, the Devon and the Somerset, did about £40,00U worth of business in “off sales” in the last year, said the secretary-manager (Mr Clifton Moodie) to the Licensing Control Commission yesterday. The trust objected to a chartered club in Ashburton doing the same amount of business in “off sales.” The estimate of the club’s “off sales” business was the trust’s. Mr Moodie said the trust would have no objection to the club making “off sales” if the amount was reasonable. Cross-examined by Mr T. A. Gresson, Mr Moodie said the trust felt that wholesalers should not be in the trust’s area at aIL Mr Gresson: Do you regard competition from the local club as being as bad as that offered by wholesalers? Mr Moodie: I would not say so. I'd say as far as competition is concerned they were both as bad as each other.

Mr Moodie said that the Devon Hotel incurred a loss for the year ended 1954 and 1955. The loss was reduced very substantially for the year ended 1955. The hotels at Hinds and Mount Somers had also shown losses. Mr Moodie said that the over-all • trade, bar and outside, had shown a ■ profit in each year, with the exception of Mount Somers. The Ashburton Licensing Trust, which was established about six years ago. has an accommodation hotel at Ashburton, the four-star Devon. Another of its hotels in Ashburton, the Somerset, will be an accommodation hotel when finished. The trust also has two bottle stores in Ashburton, an accommodation hotel at Hinds, an accommodation hotel at Mount Somers, and a temporary bar at Mayfield. The Devon accommodates 30 guests, and the Mount Somers and Hinds hotels six guests each. Mr Moodie said he did not think the trust would increase its tariff at the Devon Hotel to any extent if allowed an increase. The present tariff was 35s a day. “Does Not Catch Guests” “I feel we wpuld not be able to in- | crease the tariff rate and obtain guests,” he said. “Ashburton is just an ! inland town. It does not catch guests ; for scenic attractions.” Mr Moodie said that Mr Basil Fitzpatrick had operated in Ashburton in a most active way and to the considerable detriment of the trust's bottle sales. [Mr Fitzpatrick, the main shareholder in a wholesale licence business at Rangiora, gave evidence to the commission on Wednesday.] Mr Moodie said that Mr Fitzpatrick ~b < very active in the town area of Ashburton from the time he was granted a wholesaler’s licence Cross-examined by Mr H R C Wild- Mr Moodie said that another ? S » e u? gent c °ncentrated on sales in the Ashburton country area Cross-examined by Mr W. E LeiH Mr Moodie said that the Devon Hotel would not make any immediate t?onS' ei^ nts if tariffs were de ™- ° ccu °? nc y rate of the was 66 ner cent. eestS * “ VCry gOod ” said Mr »iA'hhnrtX° r£ T > - Kp lly, chairman of the Ashburton Licencing Trust sairl that accommodation wa/not really 3 needed

at Hinds, which was close to Ashburton and served by a good road. Accommodation was needed at Mount Somers. ; which was about 30 miles from AshI burton. I Mr Kelly said there was no opposition by residents to the trust’s HamilI ton bottle store, which operated one mile from the commercial centre of Ashburton. Wholesale Operations He said the trust was very coricerned at the effect of operations of wholesale merchants from outside Ashburton. It was very difficult to assess the effect, but it would be very considerable. “I think it is unreasonable for wholesalers from outside to make sales in our district,” he said. “We have taken no steps in this matter except to reduce prices at Christmas time.” Mr Kelly said he did not think lifting of price control would make any difference to the trust’s trade, unless the trust increased or lowered its charges. “We would support an increase in i the minimum amount of liquor that wholesale merchants can sell.” he said. |“A chartered club in Ashburton has been making ‘off sales’ for many ■ years.” Mr Kelly said that the Returned Services’ Association Club in Ashburi ton made no “off sales.” Asked by Mr Wild whether the “off sales” of the chartered clut had had j any effect on the trust’s sales, Mr * Kelly said “Naturally we noticed it. ; The matter is very serious indeed, j Th* 1 trust is very concerned.” : Mr Leicester asked Mr Kelly ! whether he thought clubs should help ! those who were supplying accommoda- : i tion. | “I have no doubt, the idea would be : verv acceptable.” Mr Kelly said. The chairman asked Mr Kelb’ , whether he thought the trust would j ultimately provide hotel accommoda- ! tion a* Mayfield. i Mr Kelly sa ; d it had been the trust’s | intention to do so. But it might not I be nnssibln now. “We could ct’ll have the bottle store thei-e.” Go said. Mr Kelly said that the Devon Hotel had been able to supply sufficient • accornrnodaUon at Ashburton except at : a rush period, when other arrangel 1 ments were made.