502 HOTELS CLOSED.

Dominion, Volume 4, Issue 1166, 29 June 1911, Page 7

502 HOTELS CLOSED.

REDUCTION OF LICENSES IN VICTORIA. 8> Telcsraph—Press A'ssociaUon-OopyrtebV Melbourne, Juno 28. Tho Licenses Reduction Bonr4 »isf:closi ing seven further hotels in Melbourne. Sinoe tho board was created 502 hotels have been closed, the compensation paid amounting to .£191,969. Tho chairman made a comparison of the system with local option. Ho pointed out that in a similar period under tho latter system, New South Wales has closed 338 hotels. It was estimated that by 1914 Victoria would havo closed 800, and New South Wales 425. Under local option there was a tendency in overstocked districts to voto Continuance. Although tho operations of the Victorian Licenses Reduction Board aro not conducted in accordance with the principles of local option, tho duties of tho board are, until December 31, 1910, after which daio a. system of local option, comes into force under the Act of 1900, to reduce the number Of licenses in excess of tho statutory number, and to award compensation according to tho schomc provided for by that Act. Tho board consists of three members at a salary of .£BOO per annum each, who may not engage in any business or employment other ilian the duties of their ofiico as members .of the board. Tho board was first appointed on May 21, 1907, A compensaton fund has also been established under the Act, and is raised by means of a compensation fee at tho rate of 3 per cent, on the value of liquor purchased by every licensed victualler. The owner of the premises is chargeable with twothirds, and tho tenant with one-third of tho compensation fee. The total amount paid into the compensation fund was JM8.233 for the year 1907, -£48,513 for 1908, .£49,300 for 1909, and .£48,875 for 1910. When any reduction of licensed premises has been made, the remaining hotels, which will be benefited, nre to bear a pro rata assessment to make up the amount of license fees lost. The amount so lost up to the end of the year 1910 was .£5790, which sum has been apportioned among 1403 hotels in proportion to the benefit which, in tho opinion of the board, they will derive from the closing. Up to December 31, 1910, 410 hotels had been closed by the board, 129 of this number having surrendered their licenses. In all cases compensation was awarded, the total paid amounting to ,£194,989, or an average of ,£175 each. Ono hundred and twenty-seven of these hotels wore situated in the metropolitan district, while the remaining 283 were in country districts. In 61 cases no claims for compensation were madi by the licensees.