Price Control Removed From Hotels And Liquor

Press, Volume C, Issue 29691, 8 December 1961, Page 16

Price Control Removed From Hotels And Liquor

(From Our Own Reporter)

WELLINGTON, December 7. Price control is removed from hotel accommodation and meal tariffs and from all beer, spirits and wines, with effect tomorrow, by a notice in the Gazette tonight. All hotels licensed, unlicensed and private and boarding houses, and all liquor within the meaning of the Licensing Act, 1908, come within the scope of the notice, which was issued as the result of a Cabinet decision earlier this week.

The amendment completes a process of decontrol of hotel tariffs, which has been in progress for some time. Of 651 graded licensed hotels subject to tariff control. nearly 150 were already on the exempted list. Of all the licensed accommodation in New Zealand's four main centres—a total of 2659 bedrooms—hotels with 1794 bedrooms were at the end of November, already exempt from price control. Today’s notice thus frees the remaining hotels in metropolitan areas and their 865 bedrooms. The grading of hotels and the fixing of tariff scales for accommodation and meals have been the responsibility of the Trade Practices and Prices Division of the Department of Industries and Commerce, under the Control ot Prices Act, 1947. Claim to Prove “The hotel and liquor industries have pressed for years for decontrol as the only effective solution for many of the present deficiencies of the trade,’’ the acting Minister of Industries and Commerce (Mr Shand) said tonight. “They are now being given their opportunity, and the Government, as well as the public, will anticipate, and can reasonably expect that, given freedom, the trade will provide increased and

improved accommodation, amenities and service. “The industry has been under price control for approximately 22 years, and it is clear to the Government that its expansion has continued to be unduly hampered by retention of restrictions for too long a period after the original reason for their introduction disappeared. Hotels Now Offices “Everyone knows that many licensed and private hotels have, in recent year’s, been converted into offices showing a greater financial return,” said Mr Shand. “This has caused, in turn, an acute shortage of accommodation for travellers and tourists. “Most highly-graded hotels have, however, been free for some time to adjust their tariffs for themselves, and there has been, to my knowledge, considerable improvement in accommodation and services. “New Zealand needs, as speedily as possible, substantial expansion of its licensed hotel accommodation to cope with the everincreasing flow of overseas tourists and to meet the even greater demand upon it by the developing jet and superjet travel age. “In any case, more especially at a time of depreciated prices for primary products.

the potential of the tourist trade as an earning source of overseas exchange becomes one of grave consequence to the New Zealand economy. “There .is no doubt that some hotels in various localities are due for a general improvement in standards. On the other hand, however. in many parts of the country the industry has, from its own resources, provided some fine new accommodation .though much more remains to be done. “The decision to decontrol was in accord with the basic Government policy of eliminating, as soon as possible, controls which could be more harmful than helpful. It is now up to the hotel industry to play its part, as I feel sure it will,” said Mr Shand.