INVERCARGILL TRUST

Greymouth Evening Star, 15 October 1946, Page 2

INVERCARGILL TRUST

FULL SERVICE NOT YET PROVIDED BURDEN OF WORKERS’ WAGES “Up to dafe we have npt been able to provide sufficient premises to accommodate the travelling public or to provide conditions satisfactory to the members for the sale of liquor and refreshments,” says the second annual report of the Invercargill Licensing Trust, presented to the House of Representatives. Progress dlKr ing the year had been satisfactory, considering the numerous difficulties encountered. “The only permit granted for a new hotel,” continued the report, “was that for Hotel Southland, which should be completed in three to four months’ time. This will provide accommodation close to the principal public hospital and serve the district to South Invercargill.” Not Financial Success. The Brown Owl restaurant experiment continued to be successful, except from a financial standpoint, the difficulty being that that class of business could not carry the burden of licensed hotel workers’ wages, The sale of liquor in those premises was only an additional amenity to the restaurant service and was far from being the principal source of revenue. That brought about the anomalous position of the trust having to pay licensed hotel workers’ wages to employees, the majority of whom were not in. any way connected with the sale of liquor or the running of a hotel. None the less, the experiment was well worth the trying and should be continued. The trust acquired a substantial holding in the Southland Brewery and entered into an agreement controlling indiscriminate sales of liquor, a matter which had previously given the trust a considerable amount of concern. The arrangement was working most satisfactorily. The trust had repaid the original £50,000 borrowed from the Treasury, together with interest accrued, and Ministerial consent had been given for the trust to borrow up to £275,000 from the Bank of New Zealand by a charge over tke trust’s assets. At March 31 the bank balance was a debit of £206,980/3/9. Book value of assets totalled £288,362/5/8, less losses £12,649/9/2, which equalled £275,712 16/6, but. that figure could be assessed much higher if the licence value were taken into consideration or if assessed on a turnover of over £214/544 5/5 in liquor a year. Cash Turnover. The total cash turnover for the year was £266,799/10/1, leaving’ a taxable profit of £35,621/18/3. After deducting income and social security taxes, the balance to carry forward would be £14,466/11/6 for the year and nine months. “At the end of its complete year of operations, members are satisfied that the policy of the trust is meeting with an ever-increasing goodwill from the public, even from those who were critical front either point of view 12 months ago. The general behaviour, including peace celebrations period, was, we think, irreproachable, and we think that the police report could support this statement. The strict observance of hours and general law as to trading has continued to be the inviolable rule of the trust, in spite of the general unpopularity of the present licensing restrictions,” said the report. “It, of course, will be several years before a complete judgment can fairly be passed on tlie success or otherwise of trust control ideals.”