Inquiry Into Liquor Prices Opened

Press, Volume CV, Issue 31016, 23 March 1966, Page 3

Inquiry Into Liquor Prices Opened

(New Zealand Press Association)

WELLINGTON, March 22.

A recommendation that the Hotel Association and its members stop fixing or nominating the retail prices of beer was made today by the Examiner of Trades Practices and Prices (Mr A. G. Beadle).

Mr Beadle made his recommendation to the Trade Practices and Prices Commission, presided over by Mr B. S. Barry, S.M., in the inquiry into an alleged agreement increasing beer and spirits prices in hotels.

Mr Beadle recommended that it be a policy of the Hotel Association of New Zealand and its members not to decide, recommend, or influence the prices or terms on which members sold beer or spirits.

Counsel assisting the commission (Mr G. S. Orr) said in his submissions that the emergency executive of the Hotel Association of New Zealand met on June 21 last year as a result of brewery increases in the price of draught beer by 4d to 6d a gallon. After the meeting the association’s chief executive (Mr J. H. Williams) sent a circular to all branches recommending hotel-keepers to increase bar prices by Id a glass for draught beer (except the soz glass), Id a nip of spirits (except New Zealand gin), and 3d a flagon of draught beer.

Mr Orr produced the circular sent to branches, and also circulars in similar terms, recommending price increases, sent by branches to hotelkeepers. Mr Orr produced letters which passed between the as-

sociation and the Examiner of Trade Practices before June last year, in which the examiner said he would take action against the association if it continued to set prices by agreement as it had done previously. “UNRESPONSIVE” Mr Orr said the examiner made a complaint to the Hotel Association about its June review of prices, but the association’s reply was unresponsive. The examiner’s view was that the review of prices was a trade practice against the public interest in that it reresulted in considerable reduction in competition among hotels, and increased considerably the cost of beer and spirits to the consuming public. Mr Orr said a survey of 187 hotels in the four main centres by price inspectors showed a very high degree of adherence to the association’s recommended prices. In the case of the Id increase for the Boz glass, for instance, 98 per cent of the hotels had complied. The purpose of the trade practices legislation, said Mr Orr, was to secure and maintain free and open competition and to protect the public from exploitation.

Mr R. B. Cooke, Q.C., representing the Hotel Association, said there was still a

substantial independent ownership of hotels, and that the number would soon drop if uniform prices were abolished. The inquiry will continue tomorrow.

Mr Barry took the unusual course of withholding from the press the report and recommendations of the Examiner of Trade Practices. While Mr Orr referred to excerpts from the report, all those in court, including hotel licencees as well as members of the Bench, held the report in their hands and followed him.

Answering an inquiry afterwards from a reporter whether the report was or was not before the commission and whether the press could have a copy if it was before the hearing, Mr Barry said the press could report only what was said of the report. Mr Cooke had earlier applied successfully to have the report kept from the press until it was presented in evidence.