BREWERY CONTROL

Gisborne Herald, Volume LXXII, Issue 21816, 12 September 1945, Page 6

BREWERY CONTROL

LICENSED HOTELS OWNERSHIP DEFENDED COMPANY’S VIEWPOINT (P.A.) WELLINGTON, Sept. 11. Brewery ownership, or the control of licensed hotels, was defended by the chairman of directors of Dominion Breweries, Mr. L. J. Stevens, in evidence before the Royal Commission on licensing in Wellington yesterday. The company had at lirst concentrated on the brewing and bottling of ale and stout and the sale of wine and spirits, he said but soon recognised that any substantial consolidation of its business and increase in its turnover could be secured only if its marketing policy was co-ordinated with consumption at the retail end. The company found that its objective could not be achieved merely by leasing hotels, as the owners in most cases were prepared to grant only short leases. The solution lay in the purchase of freeholds. At present the company held 17 freeholds and 23 leases. The company considered that under its policy the public received the best of service and control and observance of the law was more rigidly enforced. The implication that licensee-managers more or less heid their positions through illicit trading to secure large profits for their employers was not warranted, as the licensee-managers had no interest in the profits and there was no inducement to break the law.

The company, he said, considered that the profit motive did not apply in the case of either the licensee-manager or the lessee-licensee. If after-hour sales were made they were the result of importunity of customers and were an indication of dissatisfaction on the part of the general public with the hours of sale now existing. Attention to Property

In tlie company's opinion no organisations were belter placed to give the necessary attention to property and implement the correct policy of development than were the organisations already interested in the trade. ‘lt is confidently predicted," said Mr. Stevens, "that the advantages of brewery ownership wili come to be looked on as a guarantee of a high standard of comfort and service, both in the dispensing of beer and other drinks and in the provision of meals and beds."

Considerable progress had been made, but much remained to be done, he continued. It was wrong to allow the impression to become general that the outels in New Zealand were behind the standard of other English-speaking countries. There was a lack of luxury hotels in the main centres for the wealthy tourist class, but the family type of hotel was satisfactory. The company had spent from £3OO to £IOOO on beer systems for hotels to maintain the hygiene in the service of beer, and lew tenants ol' privatelyowned hotels would be prepared to incur that cost. It was only through methods that gave the company control of marketing at the retail end that such systems were made available. Trice of Products For many years all prices of brewery products had ‘remained stable, apart from the increased excise and sales tax, which had been passed on to the consumers, said Mr. Stevens. On the other hand, the costs had increased very substantially in all departments. The price of malt had increased by 27 per cent, hops by 9 per cent, wages 35 per cent, freight rates 19 per cent, and repairs and maintenance fully 100 per cent.

So far the company had carried the increases on the basis of the expanding turnover. Any marked decline in turnover would make price increases to the consumer inevitable, or tax remissions would have to be allowed manufacturers. “It is conceded on behali of the company, that in view of the general dissatisfaction related to the hours of sale, which apparently is fixed on the theory that a man should drink in working hours but abstain strictly when he is at leisure, the much publicised and allegedly vicious habit of vertical drinking actually found few critics. The strength of beer found critics, but also found supporters. The company was led to the conclusion that if the hours of sale were made more convenient and if hotel-owners wore given reasonable tenure between polls and the opportunity of rebuilding and reconstructing hotels to modern standards so as to enable good service to be given to the public, little or no ground for dissatisfaction would be found to exist.