LIQUOR TRADE REFORM.

New Zealand Herald, Volume LX, Issue 18412, 30 May 1923, Page 10

LIQUOR TRADE REFORM.

CORPORATE CONTROL PLAN : STATE HAS DECISIVE VOICE. DETAILS OF THE SCHEME. NEW ISSUE AT THE BALLOT. SUPPORT OF INFLUENTIAL BODIES. [BY TELEGRAPH.—-OWN CORRESPONDENT.] ".....'-.' WELLINGTON. Tuesday. Challenged to produce an acceptable scheme for the reform of the liquor trade, four members of the Anglican Synod of Auckland produced proposals which, with amendments, have now been approved by a conference of representatives of the associated clubs, the Moderate League, the- brewers, the wholesale wino and spirit merchants, retail hotelkeepers, and freehold owners of licensed houses. The amended proposals, which the conference desires to see made an issue in the licensing ballot paper in place of the present' issue of State control, provide ' for the vesting of the liquor trade in a corporation on the directorate of which the State would be represented by a majority of members, and which would •be required to limit its dividends to 10 per' cent, per annum, devoting any excess to • national purposes. , . Under tho scheme the ownership of licensed premises and the manufacture, importation; and wholesale distribution of alcoholic liquors in the Dominion would bo exclusively vested by Act of Parliament in a corporation. All owners of hotel premises or lessees from local bodies of hotel premises and all holders of brewers' licenses and wholesale licenses, would bo required/to sell to the corporation thenproperties, and in the case of brewers and wholesale licensees their businesses as manufacturers and wholesale vendors. Tho term " business " in this connection would not include any leasehold .of hotel property except leases from a local body.

, Capitalisation Proposals. - The ' corporation would have a nominal capital .divided into shares equivalent in amount to the value of the assets taken over as ascertained by valuation in the manner provided by the Public Works Act for the compulsory taking of land. In the amount would be included, in consideration of the transfer of the , business a.B going concerns, a sum equal to three years' -net profits actually earned' by > the businesses, '~ the profits being ascertained "in a fair 'and equitable manner." \ The capital of the corporation would be divided into "A" shares and " B " shares, 20 per cent, of the total being, "A" shares and the remaining 80 per cent. "B " shares. ",/,: Upon the taking over of the businesses by the corporation, the "A" shares would bo allotted to the Government without any payment in cash and would have an ' earning power equal to , that of the "B ' r shares. ■- All dividends accruing upon the ."A' shares would from time to time be applied toward payment for them until the dividends had reached in the aggregate the nominal value of the shares. •■■■ Thereafter, the "A" shares and all dividends on them would' bo t.he; property of the Government. .. •■■'.';'■ ••'■ -.('".'. The " B" shares would be allotted to the vendors in proportion to the ascertained value of .theiir. businesses. Profits accruing upon ? the "A" shares would, until the dividends on the shares had paid for them, be payable to the vendors ; in. like proportions. Dividends would be limited to 10 per cent, par annum, and all profits in,, excess .would be applied to national",purposes, such. as extinction; of the national debt, payment of hospital subsidies, construction, and maintenance of main public highways, etc. * ~ ."

' Control' of Corporation. i >'.".' The corporation would be under the sole direction of a board, consisting of nine practical and experienced men, of whom, the Government would have the rght 'to nominate a chairman and four others, arid the " B" shareholders the right to elect the .'remaining; four. The constitution would-< ; provide ' that the Government shoul'd at all times' have a majority' on the board controlling its operations, .so that business management would lie combined with" 1 direct Government .supervision.l''-. ','■ ",

The corporation would be empowered to act as the sole Authority for the issue, and continuance- of permits to sell alcoholic liquors. It would have no power to alter the total number of licenses ' for the;sale of liquor or to alter the 'Statutory hours of sale. The corporation would have power, : 'on the termination of any lease, to ••'"'grant a! :'■. permit ' instituting the cafe system for the sale of light wines and beer where it might be deemed advisable, afnd to restrict the sales of spirits. The corporation would be empowered to grant special licenses for the manufacture of-wines within New Zealand, provided that the product of manufacture was sold exclusively to the corporation. "

The conference decided to advocate the removal of the State Control issue from the ballot paper at the next licensing poll and the substitution of a third issue called' "Corporate Control" providing for the carrying into effect of the system described. It is understood that "the mem-' bers of the conference favoured the enactment of legislation providing that, in the event of the carrying of the Corporate Control . issue, them should bo no further poll, on the liquor question for nine or ten.years.