Brewers seek price decontrol

Press, 22 June 1981, Page 4

Brewers seek price decontrol

PA Wellington The brewing industry is an oligopoly which is nevertheless subject to substantial competition, the Brewer’s Association has told the Commerce Commission's in- . quiry into liquor price control. The association wants price control lifted from beer . although it concedes that it is an oligopoly .because only three breweries exist, Lion, ’ Dominion,: and Leopard, which own all New Zealand breweries except for one at Timaru ■ which is : owned jointly by D.B. and .South Island trusts:. But the association says tfi’at it should not be’subjcct i to price control because it competes with outside pres-

n sures, such as imported beer from Australia, and other n alcoholic drinks, such as; !- wine. I It says that .its members s also compete. with other e types-of entertainment, such' - as. bring-youpown . restauV rants, of which \there were; 429 in New Zealand at the s- end of 1980. r It says that price control; t has restricted price Copipeti-' y tion between the 'breweries' i. by setting a maximum stands I, ard price and that decontrol I would see competition det velop in this area. I It says that the Secretary a of Trade and Industry's -view that decontrol would’lead to % s significant price increase?:' t sh<xws v a lack of understand!i t ing oft'the competitive forcestj - within the industry. •, J. 1