TIED HOUSES

Grey River Argus, 23 March 1945, Page 2

TIED HOUSES

Question of Monopoly AND HIGH RENTALS. . P.A. WELLINGTON, March 22. The Licensing Commission was occupied practically all to-day in listening to the of the Under-Secretary of Justice, Mr. B. L. Dallard, on the statement he had previously submitted. The examination of the Commissioner of Police, Mr. James Cummings, had just' started .when the proceedings were adjourned until tomorrow. Mr. H. F. O’Leary, K.C., asked Mr. Dallard if he* thought that the option should be abolished where such an area formed part of a bigger area which was licensed. Witness replied that this was a matter of Government policy, .which might be influenced by recommendations by the Commission. Personally, he thought that the local option factor was not desirable. There should be one law for the whole pf New Zealand. To Mr. J. D. Willis (counsel assisting the Commission) witness said he held the view that it should be illegal for brewers to own licenses. Mr. F. G. Young (a member of the Commission): Do ytu agree that the system of brewers and wine and spirit' merchants financing hotel transactions makes it possible for men of' small capital to enter the hotel business ? Mr. Dallard: Up to a point. But, because that is an easy way, it does not follow that it is the most desirable. The best hotel in Wellington is financed by a company other than a brewery. The Chairman (Mr. Justice Smith): Do you consider that each brewery with a tied house., or each brewery with tied houses, constitutes a monopoly. . . Mr. Dallard: The beginnings of one. The Chairman: “With more than one there is competition ?” Mr. Dallard: Experience is that such combinations either fight, or come to an arrangement. The Chairman: Do you suggest that to-day, there is some understanding between competitors ? Mr. Dallard: Not that I am aware of. His Honour said that either there was a monopoly in the sale of beer, or there was not. Witness replied that the system of tied houses had a, tendency to raise the price of hotel properties and rents. He heard licensees say that high rents caused after-hours trading. His Honour said that, in the absence of specific cases, it wag a question whether the general statements of licensing committee chairmen attached ,to a statement of witness, were sufficient to justify, the inference that competing breweries had so raised rents that licensees were breaking the law. The Commissioner of Police, Mr. James Cummings, in reply to Mr. F. C. Spratt (N.Z. Alliance), said his main concern was for the enforcement of the law as it now stood, and for the assistance of any recommendations the ommission might see fit to make for improvements in the existing law. The normal establishment of the police force was 1,600, but it was 144 men short, and there was 25 per cent, more work, due to war conditions. Mr. Cummings will continue tomorrow.