MAKERS SEEK LOW EXCISE TAX ON NEW ZEALAND GIN

Press, Volume XCVIII, Issue 28836, 5 March 1959, Page 10

MAKERS SEEK LOW EXCISE TAX ON NEW ZEALAND GIN

A debate between the Government and liquor interests on the amount of preferential excise to be placed on New Zealand-made gin is delaying the establishment of a distillery in Auckland, according to Mr Arthur Gilbey, vice-chairman of W. and A. Gilbey, Ltd., London, which is one of the three British shareholding companies in the venture.

In Christchurch yesterday, Mr Gilbey said that his company was hoping to market gin made in Auckland at 30s a bottle, or 6s below the present price. It would be necessary to do that to maintain the market, let alone increase it, he said. “The only thing that worries us right at the moment is whether on a falling market and with high duties it would be a commercial proposition,” he said.

Mr Gilbey said'he would be in New Zealand for two weeks to discuss the building and operating of a distillery in Auckland. “Start This Year”

"If the Government gives the 0.K., I expect a start would be made some time this year. It would take about a year to build,” he said.

The cost of the distillery would be between £250,000 and £300,000, with New Zealand liquor interests and British gin-makers each paying half. The distillery would produce the alcohol and this would be converted to the final product in rectification plants owned and operated separately by each of the three British companies. Products other than gin envisaged were London and Dutch gins, vodka, and liqueurs, he said. The rectification plants would also most likely be in Auckland. They would be simple establishments compared with the main distillery. South Island barley would be used for the main distillery which would be constructed to have an annual production of 400,000 gallons of spirit, which would make approximately the same amount of gin. There was no intention of producing whisky in the establishment.

The amount of spirit used by each of the English companies m rectification plants would depend entirely on public demand for their products.

Asked whether New Zealand gin was likely to be as good in quality as imported gin, Mr Gilbey replied:

“Quality is the least ol our worries. We can produce gin anywhere in the world as well as we can in England, probably better because the New Zealand plants will have more modern equipment than most of us. There is good grain and a good climate for distilling. The public certainly has no need to fear the quality.” On his visit to the Dominion Mr Gilby is accompanied by a codirector (Mr Robin Gold) and his organisation’s New Zealand director (Mr J. Wilcox).