HOTELKEEPERS' LOSSES.

New Zealand Herald, Volume LXVIII, Issue 20924, 14 July 1931, Page 7

HOTELKEEPERS' LOSSES.

MANY IN SORRY PLIGHT. AUSTRALIAN PLEA FOR RELIEF. A deputation of hotelkeepers which waited on the New South Wales Minister of Justice, Mr. Lamaro, in Sydney, lately, gave a depressing picture of the conditions prevailing in their trade throughout the State. They declared that from 40 to 50 per cent, of them were on the verge of bankruptcy, and that unless they were afforded some measure of relief from payment of the licence fees which fell duo at the end of June, hundreds would find themselves thrown out into the street without a penny. Mr. J. Dooley said that surely licencees were entitled to the same consideration as was given to the man on the land who was unable to pay his conditional purchase instalments. Hundreds of estimable people had already lost their capital, and all that they were now asking for was temporary relief to enable them to continue earning their livelihood. Rents were much higher than was generally supposed, since the nominal figure did not include the bonus on transfers, which was frequently three times as much as the rent itself.

Mr. N. R. Connolly, president of the United Licensed Victuallers' Association, said that most of a hotelkeeper's bar traclo was derived from those who had surplus cash, of which there was now practically none. Licence fees varied from £IOO fo £2500, which had to be paid in one lump sum. From these fees the State derived a revenue of £430,000. The high rents prevailing had been fixed under conditions of prosperity,, and many private owners and lessees were refusing to make any reduction whatever.

The spenker instanced the case of one man who had taken a 10 years' lease of a city hotel at a rental of £25 weekly. After a year and a-half tho lease was transferred at a rental of £75, the incomer paying a bonus of £17,500. r l he rent was now £7O, but the takings had fallen 50 per cent. In another transfer case the bonus paid bv the incoming tenant was £36.000 for the four years unexpired portion of n lease. Mr. L. P. Plasto said that the deputation wanted a promise that those who had not paid their licence fees by June 30 would not bo put out of their houses. The Minister promised to bring the matter before the Cabinet.