Brewing Industry's Position Analysed

Northern Advocate, 26 July 1943, Page 6

Brewing Industry's Position Analysed

“The brewing industry has been carrying on under extreme difficulties, for in addition to the ordinary problems of supply and distribution, it has been severely handicapped by the fact that, while the product manufactured is not recognised officially as essential, the industry was asked to produce all the goods and render all the services expected of ail essential industry,” said Mr. H. J. Kclliher, managing director of Dominion Breweries, Ltd., addressing shareholders at lho annual meeting recently. Mr. Kelliher said on account, of production difficulties the industry had been unable fully to supply the requirements of the American forces, with the result that: large quantities of beer had to be imported from America for consumption in New Zealand.

“This would not have been necessary, and valuable shipping space would have been saved, had the industry been rated as essential and had we honestly faced the fact that the great majority of soldiers in the field and workers at home look upon their glass of beer as indispensable to a maximum war effort,” he declared. "I am more convinced than ever that what we want in this country is a rational and ccmmonsense approach io the whole liquor question.” Shortage of Bottles and Seals

In addition to the serious handicap in securing and retaining efficient labour, lhe shortage of bottles, coupled with the rationing of crown seals, made the situation even more precarious. Until recently, crown seals were rationed on the basis" of a 25 per cent, reduction on the previous year’s purchases, which meant that customers had to be rationed on the same basis. A reduction of 25 per cent, in betiled beer to meet an increased demand l'or this product added considerably to supply difficulties. With acute shortages of labour and materials, it was gratifying that during the past financial year the company had no! only maintained production, but actually increased it, and at the same time was able to keep up the standard of quality. "The important part played by the brewing industry in providing revenue tor the national exchequer is probably nor fully appreciated,’’ addl'd Mr. Kelliher. “It will no doubt surprise shareholders to learn that during the financial year under review, the Government has received from lire company by way of direct, and indirect taxation just on £1,000,000. This means that the sums contributed by Ihe company under tire various heads of taxation in "a single year amount to nearly three times its paid-up capital. I think that this constituies a record for any industrial concern in this country."