“TIED HOUSES”

Greymouth Evening Star, 22 March 1945, Page 2

“TIED HOUSES”

DEPARTMENT OFFICIAL’S VIEWS

WELLINGTON, -March- 21. •, A supplementary statement was presented to the Royal Commission on Licensing to-day by Mr. B’. L. Dallard, Under-Secretary for .Justice. He said it might have been inferred from his previous ’statement that he had advocated State control. He did not wish the commission to draw any such inference. Mr. Dallard said the commission had heard the statement by the Commissioner of Stamp Duties as to the enormous figures set down for goodwill, and the high weekly rentals stipulated in agreements to lease. “This is common knowledge to almost every lawyer or, accountant,” said Mr. Dallard, “and it ’ was the burdensome overheads arising from such conditions, combined with their effect in inducing illicit practices, which moved some of the chairmen of licensing committees to suggest that all leases and -transfers should be subject to the approval of a licensing commission.”

After quoting what were termed excessively high prices for hotel properties, and giving examples of monopolistic expansion by certain brewery companies, the witness added: “The question arises, how it this to be checked or controlled? The commission is aware that there has been created a Land Sales Court which is designed to keep general property values within manageable dimensions, and also to prevent inflation. On this analogy it would seem worth while considering whether some controlling authority should be vested with power to approve or determine the conditions of tenure of.licensed premises, if expansion by brewery concerns is to continue,” Cross-examined by Mr. H. F. O’Leary, K.C., counsel for the New Zealand Licensed Victuallers’ Association, Mr. Dallard said a poll every three years to decide whether the liquor trade should be allowed to continue did not allow a sufficient period to encourage people to make investment for the improvement of hotel premises. It might be a serious factor in failure to rebuild.

Referring to an earlier statement that the liquor trade was a State created monopoly, owned and enjoyed bv private interests, Mr. O’Leary suggested that Mr. S. L. Paterson, S.M. in his report, had “spread himself” on the question of monopoly. Mr. Dallard: Not unduly. He is a very thoughtful magistrate. In reply to further questions he said the trade had failed to provide properly equipped hotels, with proper facilities for the orderly well conducted sale of the popular selection of alcoholic beverages at a reasonably price. He was unable to speak about the quality of liquor. Mr. O’Leary: Do you know of any complaint by the public about what is termed the “tying” of houses? The public, as such, was inarticulate, said Mr. Dallard. One knew that the system of “trustification” was likely\to lead to serious repercussions unless it were controlled in the public interest. Mr. O’Leary: You cannot tell us of any complaint by the public because of "“tying” of houses? Mr. Dallard: No, but I drew attention to it because of my own views, and the views expressed by the English commission. Mr. O’Leary: What is the benefit of raising it if the beer drinking public are quite content? Mr. Dallard: I .say it is undesirable that this trade should get into the hands of a few private interested companies. Mr. O’Leary drew attention to statements about payments made by licensees. “They know what they are doing when they enter into the lease of a "tied house,” he said. Mr. Dallard: I consider it is undesirable, when people are dealing with a public service, that they should go into it on conditions which will almost oblige them to break the law to carry on. Mr. O’Leary: That is a very sweeping statement. At this stage the proceedings were adjourned. LIGHT WINES WELLINGTON, March 22. To the Licensing Commission. B W. L. Linderman, viticultural expert, to the Department of Agriculture said there- was insufficient control over the sale of New Zealand wines, and it was possible to foist an immature product upon the public. He had been reported when previously before the Commission as saying it was impossible to make sweet fortified wines in the Dominion without sugar. “If I used the word ‘impossible’ it was only in an economic sense.” Pie said he believed that the New Zealand oublic should, be encouraged to drink light wines at meals, and he advocated their introduction in restaurants.