Licensing Commission Commences Inquiry

Northern Advocate, 7 March 1945, Page 4

Licensing Commission Commences Inquiry

(P.A.) WELLINGTON, This Day. ’ The Royal Commission appointed to investigate the licensing laws opened its sittings in Wellington yesterday under the chairmanship of Mr. Justice Smith. Mr. J. D. Wiilis appeared for the Crown and as counsel assisting the commission. Mr. H. F. O’Leary, K.C., ha's been briefed for the National Council of the Licensed Trade, but was not present, Mr. P. B. Cooke. K.C.. also for the National Council, said Mr. O’Leary would be present next week. Mr. F. C. Spratt and Mr. R. Hardie Boys represent the N.Z. Alliance. Mr. Willis in his opening address, said there had been patchwork legislation and some of the amendments were out of date. Various judges had recommended a thorough revision. It did not appear that alcohol had cuased industrial inefficiency or industrial dispute, but there was a definite association with venereal disease. Social Effects Evidence would be given as to the social effects of drinking. He had no intention of attacking the liquor trade unsupported by evidence. It was his duty to draw attention to abuses and defects in the existing system. There had been complaints, especially in the north, about the lack of accommodation for the travelling public. If the commission found that the trade was not performing that service it was its duty to say so and recommend improvements. There was no doubt that a monopoly existed for the manufacture, control and sale of liquor, and that it was in the hands of a small select group. One licensing chairman had drawn attention to the policy of the three large brewing companies which had been gradually obtaining control of hotels throughout the country. Mr. Willis said the national drink bill had grown from £7,500,000 in 1936, to £13,000,000 in 1944, or about £8 per head of population. He referred to the prevalence of licensing offences such as gambling, and to overcharging of customers. If the cases reported were true, there was an obvious flouting of the Price Tribunal regulations, and deliberate exploitation of the public. “Tied Houses” Commenting on Ihe system of "tied houses,” Mr. Willis said that certain licensees had been forced for financial reasons to purchase supplies only from certain breweries, and the possibility was that, lhe public’s choice of refreshments had been restricted. The matter was certainly one for the commission. Not only should the letter of the law be observed but also its spirit. That question led to the consideration of anotheivshould breweries be permitted to obtain the freehold or leasehold of hotels? As far as could be ascertained there were 1095 hotels in the Dominion. During the past eight or nine years the three principal brewing companies operating had been systematically acquiring; leasehold and freehold properties. “There is no doubting the fact that the brewers own a considerable number or hotels,” said Mr. Willis. “Just how many they own it is difficult to ascertain but; the information is available in the trade and I hope it will be made knev.n to tin; commission.”

Licensee-Managers This policy had been further implemented, Mr. Willis added, by the brewers putting their own licensee-managers into their hotels, so that they obtained both the wholesale and retail profits. “That is another aspect of the trade which should receive the attention of the commission,” he said. Such a practice was at least a breach of the spirit of the statute. A manager had to do as he was told as he was not in effect the licensee. It was common knowledge that many of them, before they took over hotel businesses, had to sign license transfers in blank so that in the event of any trouble developing later there would be no difficulty concerning the transfer of the license. It was also submitted that when managers committed breaches of the law the suggestion was in certain cases that it had been done at the direction of the brewery owners in order to push their wares. Further, a man who had incurred the displeasure cf the Courts could be put out of the business and be replaced by another manager. That difficulty could be overcome by making the disqualification apply to the house i!soli' and not only to the man in charge. Tliere would then be a more strict observance of the licensing laws and the evil to which he had referred would probably vanish. Proportion of Licenses The situation would largely be met, Mr. Willis continued, if brewers were not allowed to have a financial interest in licensed houses, if the conveyancing device were prohibited and if better provision were made for the disqualification of hotel premises themselves. One of the most outstanding matters requiring reform and one which there was reason to believe was causing great dissatisfaction to all parties, including the public, was the distribution of licenses, said Mr. Willis. The proportion of licensed houses to population was steadily declining. In 1.905 it was one to 583 of population, in 1915 one to 911, in 1937 one to 1360, and in 1945 one to approximately 1500. Additional licenses were probably unnecessary in New Zealand if the 1095 already in existence were redistributed on the same national basis.

The present system seemed to be based on the idea that population remained more or less static. There was r.o provision to remove a license from one district to another. Mr. Willis dealt with anomalies and injustices which had arisen ns a result of changes in electoral boundaries. If nolicense districts were abolished and a uniform system, were in vogue throughout the country such difficulties could not occur. Wine Industry New Zealand’s wine industry, which was capable of producing light unfortified beverage wines equal to any in the world, was in need of encouragement;, said Mr. Willis. Every possible endeavour should be made to increase the demand for such natural wholesome wines with their low alcoholic content of approximately 16 per cent, proof spirits. Such wines did not appeal to the confirmed drinker or induce a liking for alcohol. They were essentially mealtime beverages and it was thought they should be readily available.

At present New Zealand was producing practically no such dry light wines and a buyer had virtually no option but to take fortified sweet wine of up to 40 per cent, proof spirits. Recommendations would be made with the purpose of placing the wine industry on a proper basis and weeding out inefficient and dishonest wine makers.

Discussing licensing committees. Mr. Willis said that elections for membership ■were, now rare. The public d:d not show much interest and many electors failed to vote. One reason was probably that the powers of the committees had been considerably curtailed so that they had now very little to do. “In my submission,’’ counsel continued, “licensing committees are not really necessary if their powers are to continue as at present. Their work could equally well be performed by a magistrate sitting alone.

“Tiie whole licensing code relative to Maoris needs to be recast, and the matter is becoming of increasing importance and urgency. Some of the present legislation |s obsolete, none <3£ it goes far enough and the penalties are inadeccatc.”