BREWERS AND BEER

Northern Advocate, 15 September 1934, Page 3

BREWERS AND BEER

SHARP WORDS IN THE HOUSE. MINISTER’S MOTIVE. THE THREEPENNY EASEMENT. (From o*tr Parliamentary Special.) WELLINGTON. This Day. Sharp words were hurled across the floor in the House of Representatives yesterday when the proposed easement of 3d per gallon on beer to New Zealand breweries caused the Rt. Hon. J. G. Coates and the Leader of the Opposition, Mr M. J. Savage, to come into vei’bal conflict.

At the outset Mr Coates stated that, in order to secure a market for New Zealand hops in England, it was deemed advisable to reduce the duty on imported beer by 3d a gallon. However, the duty on imported beer would not be reduced wi.uout a corresponding modification of the rate of excise duty on local beer,which, from a revenue producing point of view, was too high. Therefore a reduction of 3d per gallon both on imports and excise duties, was proposed. Tne retort of Mr Savage was that he could not accept the viewpoint of the Government, which could not find money for other purposes, but could make concessions to local brewers. Mr Savage said he failed to see why those concessions were necessary in order to ensure a market for our hops in England.

Mr Coates was quickly on his feet and warmly accused the Leader of the Opposition of adopting a pompous attitude, and further remarking that Mr Savage did not know what he was talking about. Continuing, the Minister said the question whether the brewer, licensee or consumer got the benefit of the concession was one that could only be left to the industry. His point was that, on account of the high taxation of beer there had been a terrific growth in home brewing. He had had proposals prepared for taxing the home brewing industry, but it was found it would be. almost impossible to administer them, as Australia was finding out. In his opinion, the reduction of duty would not result in a reduction in revenue.

Mr H. Atmore (Independent, Nelson ) said if it was desired to make a gesture to Guinness, it would be all right to reduce the import duty, but it was nonsense for the Minister to say it would be unfair to reduce the import duty without reducing the excise duty too. The remission of 3d a gallon to New Zealand brewers could not be passed on unless a coin value at l-5d were introduced, or larger glasses were provided. No reason had been shown for a gift of £112,000 to the local brewers, which was the amount of the concession, based on last year’s figures. When the House resumed after luncheon Mr Savage said that Mr Coates had accused him of adopting a pompous attitude, which was the last thing of which he expected to be accused. He had never heard a more illogical statement than the one made by Mr Coates. He had also beenaccused by J Mr Coates of being ignorant of the J reason behind the proposal. I “I resent that,” said Mr Savage. “I will meet the Minister anywhere and we will see who is ignorant. The Minister wants to lay foundations for the sale of our hops overseas, so he is going to give concessions to New Zealand brewers, the competitors of the people who will buy our hops. If the Minister wants to help overseas interests, would it not be more logical to curtail local beer? The less beer we bring in from overseas, the less claim have we for a market overseas for our hops. Isn’t that logical? I resent the proposed attitude he has taken up against me. If he adopts that attitude outside this House I will meet him anywhere.” Mr Coates: “If you impute motives i you will, get back what you give.” Mr Savage: “Well, the fight is on and ; you need give me no quarter, because I you will get none from me.” 1 Mr Jull said there were 51 breweries in New Zealand, and New Zealand I Breweries operated nine of them. It was not in the slightest degree possible for the brewers to retain 13/- per hogs- j head, for that was what the reduction would represent. The duty on imported beer had been increased to 3/-. but two years ago it had been reduced to 2/-, and it was now proposed to reduce it to 1/9. The excise duty on locally produced beer should reasonably [share in the reduction. Mr Coates said no brewing interests in -this country had approached him, either directly or indirectly. It was incorrect to say that the Government would lose £112,000 in revenue as a result of the proposal. He was not so certain that the figures would not balance at the end of the year, on account of extra consumption. He added that 69 applications from hotel-keepers in Wellington had been dealt with by the Mortgagors’ Relief Commission. Mr Lee: “They have been trading on goodwill that does not belong to j them.”

Quoting from the latest price list issued, Mr Coates said the proposed reductions were now being passed on. There had been a reduction of 13/6 per 54 gallon cask of beer; 9/- per 36gallon; 4/6 on 18-gallons, and 1/3 on 10-gallons. On large size bottles of ale and stout the reduction was 6d per dozen. On small bottles 3d per dozen, and on nip bottles lid-

The Hon. Downie Stewart (Government, Dunedin West) said the hop industry had always found it very dif - ficult to establish an export market. If the door were opened to an export market, the hop Industry would be

very valuable to the Dominion. He detailed difficulties that were encountered when an effort was made to establish a market in Ireland, in return for which Irish brewing interests sought a reduction in the duties on their products in New Zealand. The suggestion was made by Mi St all worthy that the proposed reduc- ' tion of 3d be reinstated and the equivalent be used to restore to old-age pensioners the full 10 per cent, cut retrospective from April 1. Mr Coates: “Will you vote for this 3d reduction if the old-age pensions go back?” Mr Stallworthy: “If the Minister will promise to restore the full 10 per cent, in old-age pensions I will vote for this. It is estimated that £24,000 is required to give back 5 per cent, for a half year, so about four times that will be needed to give 10 per cent, for tha whole year, so, with another £ 12,000 or £13,000 added to this beer duty the Minister could restore the pensions, especially if we have the surplus of | £1,000,000 the Minister of Lands has talked about.” Mr Savage said he wanted to help ■ the hop-growers, but the Government’s proposals would not do that. He had not had it in mind to make any insinu- . ations that any undue influence had been brought to bear on the Govern- . ment. The subject was still underdiscussion ■ when the hour of the adjournment ar- ■ rived.