BREWERY LICENCES

Evening Post, Volume CXI, Issue 139, 15 June 1931, Page 11

BREWERY LICENCES

THE- NEW- DESPOTISM'

(To the Editor.) Sir,—ln answer to a. recent deputation from tho New Zealand Alliance asking the Prime Minister to grant no further brewery licences, ho is reported to havo stated that the Government intended placing the matter in the-hands of" the ■Minister of Customs. The Prime Minister indicated that it was the intention of his Government to-bring, down an Act giving the Minister an unfettered right'to. refuse any further, brewery licences in -this--Dominion.

If.such an Act is brought in,- it will be another-instance of'the "growth of the new despotism, which, has been so trenchantly'inveighed against by the Lord Chief Justice of England in his recent book on the-' subject—another threatened invasion of the rights and liberties of the subject .by giving through an Act of Parliament the powers of an. absolute' monarch to a Minister of the Crown. • , .'•■ The casual'reader may ask with' Gertrude, Queen of "Denmark:—' '. ...

"AVhat act (is this)-that', roars so loudand thunders', in the. index?"

Well, the' question /-crops up as a. re-, suit of the. decision of the. New Zea-. land Court, of"Appeal in the case-of Jorgensen and others versus the Minister of Customs (1931, N.Z.L.R.C.A. 127), and is important enough to crave your space to ventilate,the facts —nothing" extenuating"noi- 'might being set down in" nialice;

In his-reply to tho.deputation, the Prinio-Minister is-reported as saying (vide "Evening Post" and "Dominion" report): "Until they tested a case i in,. tho'. Courts'. they, .had had.- the. idea that the Minister of Customs was in the. position to be Sbi'e to refuse the issue ■ ot" A licence, but"-as :a result of the .Court's .-decision-it- was .shown that the; power was .not in the hands, of. the" Minister." .. ' .'■', ' "" "'. ..

; '"This:'clearly ■ infers-' tlia.t' ; ifc'"'was--'the, Govern Brtia'frivlto'paused; the question to" b0 tested-, wliil.o,-in-factj;it,was the -,ap v plicant for", the brewery licence .-who. was compelled. ,to" force-" the. Govern-: ment Js; liandiLbyiin. appeal to". the;' ; Gqnr"t of Appeal, at''tiio cost'df great cxpenso and delay.' .Tins.'is' a mere detail,, however;. the. gravamen,of, th 6. 'matter .lies ifl. th.e'fact. that"'the.. Prime' j&iiusfcef .said -in.;;his reply, as ;.already. pointed out,', that .tIiSV Government" intended/t0..-bring.'.in/'lßgis-: L-ition'.iila'cing thermatfer .In- tho.'hanas ■of. tli.o. .K;riistpr;;of pustoffis...'.lri';.view' of .tliis'deciaraticrn it is important: to.' trace" the; history.' of .the case referred ''t,o:~as "a";tcst of ithc "reasonaMeness of. Ministerial action aM:tlie iniutyisabilityof cstablishirig .by. new. legislation another", piece, of neSv. .despotism.. ■;... . Soiiie.tiina.early-in 1.930" a siibstantial .syndicate "..wpj f6rmed;-|or.the ;a>urpose : of ■establishing. iii,New;Zealand- a; hvevr T: e'vy :to br.cw'.LagcrV.'oir.Pils.eVer beer ;o,f fh'ebcst quality" with'a very tow" alco-holic-content, .as compared witk the so-, •called heavy, colonial beers. At that time.the."Whole of the .Lager or Pilsener. beer consumed' in this country ■was being imported; some from Deninarkj. SO.mQ .from. Germany, Czechoslovakia, and other coTintries, to a. very considerable 'value. The project there-, fore eiitailcd. tho'.'establishnient :6£ ; a new. industry in New the eoii:. sequent expenditure of vcTy considerable sums of money, and-the employment of some fifty hands. From any but the Prohibitionist point- of. view, this might be deemed a consummation devoutly to bo wished- by any-reason-able Minister of Customs or Govcrn r ment. '■-•■ ■■' -■- •■■•- ": ■■■' ■■-'■ - - . '

As a proof of, their desire to produce the. best article possible tho syn« dieate at" great eXpensie Imported from Denmark perhaps the most.distinguished authority on the subject of tho manufacture of- light'beers in .Europe, Mr, J. P. Spangqaberg, M.1.F., of Copenhagen. Now markthe history of the syudieateV troatment.:'b3<--thV Customs -■.Department;- -by the Minister, :.aml ;fmt ally by .the .Government...,;:,;.:.., .•■■•; ''.-■ ■■ ■ -The .syndicate on .llph : March,. .1930; ..brought its application tentatively" before the Customs' Dcpartaient as re' ■quired by-tlie prbvisioii:.©£.the Finance Acts applicable to the granting of brewery licences. .It must be explained that it'is iiot. possible .'.under tho Act to obtain a. formal .grant of a, licence ■until, you. .have', erected ye.ui'. brewery and plant—and the > syndicate, in;, yievv ■of-the.fact that this, would'involve an :.expenditure .of some £100,000 odd, desired as far as '.possible to obtain ah assurance that if it complied fully with all legal requirements, its licence would be in due.course granted. ' . The. Customs Department, while not coinmiti ing the Minister, clearly indicated that'there'appeared- to be no oti-' jection. to' the issue i.of-- the licence. After cousiiierable.-negotiaMo.ri tho matter was i-eferrod-to- the-Minister later iv March, 1930, with the result, that a curt—intimation JSvas'- received. -By- the syndicate's solicitor intimating thatthe Minister had given tho matter care-' ftil coriside'TaUb'nv but" regretted1 ho was unable to approve the application. Some .weeks after.th.isfv.deputation from tho: syndicate' waited dn; the Minister, the ■Hon. Mr. Donald,; for the purpose of submitting' its'.plans more fully, answering any quest-ions, that might.be .asked, and finally, to -obtain'-if possible tlie reasons for, the Minister's arbitrary attitude. The Minister, though confess-' ing he-was .a. Prohibitionist, undertook to give, reasonable consideration to the' matter, and refer it to Cabinet for its decision.

On tli'G" 7th ""June,—l93o, the syndicate received a reply that Cabinet had cottr' sidered the application,: and had-decid-od to refuse it

. An. appeal was made fur the. reasons of tlio Goverrimerifybut" the reply was that the Minister . did. not think any useful purpose':.would.'.be..sor.ved;.by sotting out the grounds ujion which his refusal was based,.'nor. were any-grounds of'objection .over advanced or ..vouchsafed to the applicants.- So much, for the- sweet reasonableness of this Prohibition MinLstorof Customs and-of his Government. Could a more -striking example .of the new despotism be imagined? Yet tho Prime Minister now threatens to give by Act of. Parliament unfettered authority .to tho Minister of Customs in-this matter! . :

.The. unfortunate, syndicate was forced to the Courts to get a. declaratory judgment asfotho Minister's, powers. The matter being considered as -involving a most important principle,-was referred by his Honour the Chief Justice to tlio Court of Appeal. Tli'o. Government was .represented at the- trial by the SolicitorGeneraJ, who, while, boing unable to state reasons for the Minister's refusal, strenuously attempted to" defend the Government's action. The Court of Appeal in a reserved judgment unanimously declared the Minister's action in-refusing the- licence to bo plainly unauthorised by the statute, and declared tho law to bo that he must on compliance with statutory provisions grant the licence. . ". '' '

In the course.' of the argument his Honour Sir Michael Myers himself remarked that the action of the Minister of Customs looked very like an example of tho new despotism referred to by his brother, tho Chief Justice of England. - If the' Minister of Customs, is to be given the powor arbitrarily to refuse licences as ho attempted to do in this ease, without rhyme or. reason, what reasonable expectation ia there that any application will bo considered oil its merits? • ■■

At least it is to be hoped that Pinliiiuient; will protect those who have already xpont large sums of money in iißtidpalion <*£. getting fi licence |ff|ipur-