THE DRINK- BILL

Evening Star, Issue 16783, 11 July 1918, Page 7

THE DRINK- BILL

Mr A S. Adams, in his annual review of'the drink bill of Now Zealand, estimates that the direct expenditure on drink calculated on the pre-war basis of valuation was £4.474.872, but Uio prices charged to the consumer have been considerably increased on the plea thcu this was necessary to cover the increased cost, freight, and "duty. . Imported spirits (except case spirits) are "broken down" before sale by the nddition of about 25 per cent, of water. This is a recofahed unci k-tntimato practice, but the bulk'is thus incited by 2o per cent, without anv added cost, and the diluted spirit is sold at the current prices?. Probably three-fourths of Iho spirits oro imported in bulk. The result of this break--1112-down process is that, wcilc the Customs returns show 759.ije.arrt> of spirits consumed diirituj the year 1917, the actual quantity paid for by the eon.-mmer is upwards of 900,CO:i;,ral. The water added has not been taken into account in previous estimates.

During the year many of the retailors increased" the price of spirits over the bar from 6d per tflasa (48s per c;allon) to 9(1 per glass (72s per gallon). This increaae was at different periods in different parts of the Dominion, and was for part of the year only. It would be safe to assume that the' average cost of all spirits to the consumer throughout the year was not less than 48a per gallon (including the water added), and on that of imported beer wan at least 10s per gallon. On this basis the direct cost of alcoholic liquors to the consumer for the year is estimated at .64,757,085. The "direct and indirect cost was probably well over £10,000,000. _ It appear.-; from the returns furnished by the"Comptroller of Customs that, while the fair value of the spirits, duty paid, was a fraction over 36s per pi lion in 1916, this value in 1917 was a fraction less than 31s 3d. Thaa price bus therefore been raised by 50 per cent., while the value. duty p tirl. was reduced by over 16 per cent, The reduction in cost is doubtless due to the importation of spirits of an inferior ipiality ; but the cost to the consumer has been raised on the ground of an alleged increase in the cost. 'When the usual 25 per cent, of wafer has been added (o the imported spirit, the cost is reduced to 255. At 6d per flhiss this would yield a cross profit of 23s per gallon, or 92 per cent. At Prl per glass the gross profit is £?. 7s per gallon, or 188 per cent. [The 'figures beariiv..; out the above analysis appeared in our issue of yesterday.]