LIQUOR TRADE

New Zealand Times, Volume XLII, Issue 9719, 23 July 1917, Page 6

LIQUOR TRADE

SIX O'CLOCK QUESTION LICENSED VICTUALLERS STATE THEIR CASE. A SOLUTION OFFERED. Sonic thirty representatives of the Licensed Victuallers’ Association from all parts of the Dominion laid tho “other side of the case” with regard to 6 o’clock closing of hotel bars before the Prime .Minister (the Right (Hon. IV. K. Massey; and the Attor-ney-General (the Hon. A. L. Herdman) on Saturday morning. Mr A. 10. Kernot (president of the National Council of New Zealand —a body representative of owners, brewers, wine and . spirit merchants, licensed victuallers, and members ot the allied trades) headed the deputation, and was the first spokesman. He felt, ho said, that it was necessary for him, in placing tho views of those ho represented before the Minister, to remind them that matters pertaining to the continuance of tho licensed trade in this Dominion were, towards tho close of the year 1014, at the most critical period of tu© war, referred to tho vote and decision of the people; when the people by their vote decided that the licenses throughout the Do-, minion should continue until the next ©lection, in accordance with the terms and conditions fixed and imposed by the Licensing Act. “We were justified,” declared Mr Kernot, “in assuming that the contract which tho people by their votes th©n entered into, would not b© varied in any way until the same was again reviewed at another election. Wo find, however, that the opponents of , tho licensed trade have not, in tho interests of a united Dominion, been prepared to allow the people's verdict to remain unchallenged. “On the contrary, they have systematically agitated for further restrictions of the rights of the "licensed trade, and have endeavoured to make war conditions an excuse tor their breach of faith. As a result of this agitation, the Legislature saw fit last year to impose hy War Regulations, certain restrictions in tho direction of anti-shouting or treating, and these restrictions wore imposed upoij the licensed trade, which agreed to them as some measure of sacrifice on their part to moot the exigencies which the war conditions appeared then to demand. These restrictions have affected tho licensed trade very materially, as is evidenced by tho fact that through the . anti-shouting regulations their business has been reduced by not less than 25 per cent, throughout the Dominion. Despite this sacrifice on the part of the trade, and the loss which the. same entails, its opponents now seek to impose upon them an additional sacrifice or loss in the direction of curtailing the hours during .which alcoholic liquors ■ may be sold. We contend that to imfioso such a restriction would be manifestly , unjust and , inequitable, as the licensed- trade would bo asked or called upon to bear, losses or make sacrifices out of all proportion to those required from other businesses. THE TRADE’S OFFER.

“It has been suggested that the licensed trade is not prepared to meet the exigencies of the present position in a fair and public-spirited inanner. Such is not the case; the licensed trade has always been willing to meet the position fairly and liberally; but there are limitations beyond which they cannot go, in fairness to themselves, to their employees, and to their financial obligations. A dual sacrifice such as is sought to be imposed by_ the burden of restricted hours, in addition to the restrictions imposed by antishouting regulations, will mean ruination to a largo majority of thosa engaged in tho trade. This being the case —and with all due regard so their duties as citizens—they have empowered mo aa president of the National Council of New Zealand to make io you the following suggestions as a solution of the difficult problems now confronting the National Government, viz..

'‘(1) That the present Anti-Shout-ing llegulations be repealed; “(2) That in lieu of such AntiShouting llegulations they will voluntarily accept and agree to a curtailment of hours during the present war and for a period not exceeding six months tfaereaftor, to the hours between 8 o’clock a.m. and

9 o’clock p.m. “(3) That as regards such curtailment they will bear the sacrifice and loss thereby entailed upon their qwvn / shoulders, without requiring or seeking any compensation in respect thereof, although such, curtailment means a variation of the contract entered into with them by the people at the poll.” A FAIR SOLUTION.

The above suggestions, he contended, offer a fair and equitable solution of the difficulties brought about by, tho present unwarranted agitation. If, however, in the opinion of the Govern-, raent, further curtailment of hours beyond those suggested was requisite, then, aa it was contended that such curtailment was required as a national necessity, tho licensed trade uspectfully submitted that they should be compensated out of the Consolidated Funds for any loss they might sustain by reason thereof. It wa« only right what as the people considered they would benefit by such further curtailment, the State, as representative of the people, should compensate those who suffered the loss —namely, the licensed trade. He bad endeavoured to state as concisely as possible the views of the trade as to the extent of the sacrifice or loss they felt they could possibly bear; and he assured the Ministers that the proposals he had submitted had been most carefully considered, and embodied their ideas aa to the maximum extent to which they could go without 'seeking compensation from the State by reason of any variation of the people’s contract with the licensed trade. They trusted that the Government would give their proposals fair and just consideration, and they believed that Parliament would not be induced to do a gross injustice because of an agitation brought about by those who had no practical knowledge of the businesses they sought to injure, and who had no conception of the sacrifices and losses which bad already been sustained by those vitally interested in the licensed trade.

RETAILERS’ POINT OF VIEW, The two speakers who followed Mr Kernot—Mr C. Aldridge (president of rl.e Licensed Victuallers’ Association of New Zealand), and .Mr *. J. Gibbons, .wild represented the country hotel-

keepers—put the wise from the retailers’ point of view. , . Oa behalf of tho Licensed V ictun-1-lers’ Association, Mr Aldridge protested against the continuous agitation acainst their businesses whici was being carried on year alter year by a political organisation mown as the Prohibition Party. The agitation, he said, was merely political, and had resulted -in no benefit whatever to the community ae a whole. The licensed victuallers had trusted that last year’s legislation would flat e been regarded as sufficient restriction upon the trade. There was the An-u-Trcaxing Regulation. there were other retrictive measures, and theie was an increase in the Excise duty on beer, and an increased Customs duty on spirits; all of which the trade, realising ■ that the country was at war, borel upon its own shoulders, inasmuch as it had not passed the cost of all these restrictions, increased wages, and the increased cost of living, as charges upon the public, so far a« the retail prices of alcoholic liquors were concerned, Combined with the war, and tho manifest disposition or tne people to practise greater economy In war-time, these restrictions had resulted in a decrease in, the trade ot the licensed victualler of from u per cent, to 30 per cent of his previous lousiness. This fact was borne out • by a. reduction of £300,000 in the revenue obtained from Customs and Excise duties in 1916-17, as compared with that received in 1910-lb. As the.previous speaker hath..stated, the licensed trade throughout New Zealand accepted the mandate of the people in December, 1914, m the light of a contract given by the electors that there would he no alteration in the existing system as regal'd’ hours of sale, until tho electors had another opportunity of expressing their minds on this subject. The licensed victuallers therefore entered into financial obligations, expended large sums on buildings and replenishing their hotels, doing so in some cases at the dictation of the Licensing Committee, for the purpose of making the hotels more desirable as social clubs, meeting places for men who have no clubs, and providing adequate convenience for the travelling public. “A MENACE TO THE SOLDIER’S WELFARE.” The proposed curtailment of hours was calculated to cause great loss to those who were conducting the licensed trade, and make it more difficult, and they realised that quite a number of them would be unable to carry on under' further restriction’. •‘V'’*’ regard this earlier closing (he added) as a species of class legislation, direct-

ed specifically against the less well-to-do, who are unable to lay it* stocks of liquor for consumption in their homes. We realise further that the earlier closing of hotels will havo the effect of driving what is now our legitimate business iuto illegitimate channels, cultivating drinking in the homos, and creating evils' that do not exist in connection with the licensed trade. Indeed, we are convinced that earlier closing will be a menace to tho soldier’s welfare if _ the hotels are closed in tho evening hours against soldiers on leave and citizens generally. They may bo driven to seek entertainment tu houses of illrepute and sly-grog. shops, to their physical, moral, and mental detriment. For ourselves, we oppose greater disabilities being put upon the soldiers. They are civilians m military uniform under military rule, and unless we assume that they are disfranchised, they are entitled to all civilian privileges and rights when not on duty. NOT ’A WAR NECESSITY. “We hold that-there is no necessity for earlier closing in New Zealand from a win-the-war viewpoint. New Zealand is not a munition area, ami it is only in tho munition areas in Great Britain that tho hotels are closed at 9 o’clock p.ra., and they are open on Sundays in Great Britain for five hours up to 9 p.m. That is in the munition areas in other parts, which are not munition areas, the original hours remain unaltered. That there is no necessity for increasing tho restrictions upon the consumption of alcoholic beverages in New Zealand is borne out by the fact that the people in New Zealand under the existing hours of sale consume only about onethird of the amount consumed por head of the population by the people of Great Britain. That was in the prewar year. The consumption under the restrictions imposed upon the manufacturers at Home has compelled a reduction (exclusive of that consumed by the soldiers in camps and in Army canteens in France) to an amount ju/rt about equal to tier' consumption in New Zealand per head of . the population at the present time. And that does not take into account the fact that. there has resolve on tho part of the British 4 Government this month (July) to increase the output of beer to meet the demands of tho British working men, whom the King has just thanked for their energy ana efficiency in the production of war materials. NATIONAL EFFICIENCY AND ECONOMY. “We would also point out that earlier closing is not at all necessary in the interests of national efficiency

and economy. Our agricultural produce has been vastly increased alike in quantity and value; and notwithstanding th e depreciation of our manpower our industrial efficiency has not been impaired. To show that our people have • practised economy since the war began, it is only necessary to mention that since the war broke out ten millions sterling have been added . to the deposits in the Post Office pavings Banks of the country. Taking the credits in. the commercial banks and including t-.ho War Loan, and the credits of tho people in the savings banks, tho financial efficiency of New • Zealand is shown by an aggregate credit of thirty-four millions sterling. Wo hardly thirtk it is fair to tho people that they should be charged with haying lowered their national cmcioncy by ovor-oxponditure in alcoholic beverages in the face of these figures. “I would also draw your attention to the fact that tho prohibition party has alleged as a plea, for earlier closing that the present conditions and present hours for the sal© and purchase of alcoholic liquors have shattered our moral strength. This is quite contrary to the fact. Since the war there have been fewer arrests for over-indulgence. There wore nearly three thousand fewer cases last year. There were four thousand fewer convictions, by the magistrates of tho Dominion in a full vear of war, and fewer crimes of a ' serious character have been committed. Commenting on the criminal calendar at Auckland, Mr Justice Hoskmg said: (There appears to no a similar ■ diminution in. Supreme Court oases • throughout the Dominion.’ This statement baa been repeated in various forms by the Chief Justice (Sir Robert Stout), Mr Justice Edwards, and others, so that, taking these facts into consideration, it cannot be alleged with truth that the present conditions and the present hours of sale in tholicensing trade have sffa/ttcrc-d t , h© moral strength of the nation. -In connection with the alleged necessity for greater economy, and the proposal to compel us to make greater sacrifices, are we not justified in suggesting that the ■ National Government should exorcise a policy of equality of sacrifice upon all sections of the community; for, from am economical point of view, wo see vast sums being spent in many extravagant ways, against which no agitation has been raised. JUSTICE DEMANDS COMPENSATION. "In conclusion, I have to state on behalf of some fifteen hundred licenseholders.' whose businesses are to he materially affected, that iu the ovedt of greater restrictions being imposed than those suggested ip. the offer made ou behalf ot the trade, then it will be accessary for the Government to make provision for the payment ef compensation by the State for the adjustment of rates and taxes, and her the violation of the contract, and. the consequent loss of business which would be caused by acceding to the demands or The legal positfop of the licensed trade ha« been thoroughly established in this connection, and it ifi °n|y necessary for me to add that in the words of the Attorney-GcneraT (the Hon, A. Li. Herdmah)Tt would be a gross injustice on the part of this Parliament if we were to curtail the rights ot those individuate’ f meaning the hcens-* ed victuallers) ‘and take away what is really their property without making adequate payment for the lose sustained ’ We assume that compensation will be" opposed by . the Inhibition party ; but justice demands it, and. it i® not righteous, just, or honesty that a political party of Prohibitionists should be continually agitating to compel people, to make sacrifices when they sre making none themselves. . COUNTRY HOTJBL-K ebpers. ’Mr S, J. Gibbons presented a number of - points which more particularly affect the country hotel-keepers. _ The country districts iu Naw - Zealand, ha urged, were not only munition areas, but they were far from the training oampe, and their conditions . bore no analogy whatever to the/Conditions obtaining in the munition. aroas. or Great Britain. For that reason, there was no justification whatever for applying oven 9 o'clock closing to, the country hotels. The people who wore agitating for greater restrictions upon the licensed victuallers of Now Zealand, started their agitation for the purpose of showing that they were dissatisfied with the will of the people as expressed in 1914.

present powers" ample. ; That earlier closing by /Act of Parliament was not needed was established from the fact that the Government had already -power to regulate the : licensed trade by closing hotels anywhere and at any time, should any necessity arise. Special legislation, therefore, in this respect was quite unnecessary, and in the interests ot avoiding any ill-will or class ammo* , sitios under war conditions, tho _ Goveminent might consider it advisable not to raise the whole of. the licensing in Parliament .at this time. Nor was earlier closing necessary in the interests of military' efficiency. . New Zealand produced as good fighting men as were to bo found in tho ranks of the Allied armies, and those men bad mean trained under existing licensing conditions. Yet it was claimed that earlier closing was necessary for the soldiers 1 ' It was an attempt to put civilian soldiers under greater disabilities than were borne by ordinarv citizens. They were pleased to note that the Minister for Defence had repeatedly repudiated the charges made by the opponents of the trade, of over-indulgence against soldiers. He ,had described such charges as grossly exaggerated, and altogether unwar'ranted by the facts. Prom all quarters the soldierly qualities and good behaviour of the New Zealanders had won golden opinions, and they resented the Prohibition Party, because of their antipathy to the licensed trade, aspersing the characters of the men who were fighting for liberty in Europe. (Hear,, hoar.) Tho position ■of the country hotelkeeper was emphasised by tho fact that if they took awav 'the profits that he made through the sale of alcoholic liquors, or curtailed them to any great extent, they would ■practically close the houses against the travelling public. FACED BY RUIN.

As a licensed victualler, the country hotelkeeper was able to carry on, but as an ordinary victualler ho would be faced with bankruptcy; and country hotels wore largely necessary, and largely availed of by travelling stockmen. as well as the fanning and commercial public. The country hotelkeeper was at the beck and call of the traveller, the stockman, and the farmer at all hours of the day and night, and if he refused to rise, even at 3 o’clock in the morning, and provide food and refreshment for man and beast., be was liable to be heavily fined, and might lose his license. The ronntrv hotels were essential to the trawdllmg public. were centres of social life when the dav’s ..work was done, and were mostly owned and “managed by the licensees with the assistance of their families, who wore in all res Tis-ts dependent upon the country hotel business for their livelihood.

The country hotel serves the same Purpose to residents in the country as tho city club served to the more fortunate ■ residents of our towns. If further restrictions were placed upon ™ country hotelkeeper, tho standard and catering must necessarily be reduced. and they/thought that would militate against-national efficiency ui a general and commercial way ‘Aonsir,” he said to the Prime Minister, “being the representative of a country constituency, are quite well acquainted with what is required in a country hotel, and on behalf or the country hotelkeepers I would respectfully ask you to give serious .consideration to the interests of country hotelkeepers, in view .of the drastic etfects the suggested earlier closing will have upon these institutions. Already (he added), through the exigencies of the war, the drain upon men duo to enlistments, the increased cost of the commodities sold, the added freights, the advance in foodstutts and wages, the country hotelkeeper, under present conditions, was finding it very difficult to meet his financial obligations, and they feared that any further restrictions would spell disaster to the country hotelkeeper; tor, unlike the city licensee, he had not tho advantage of being surrounded by a closely-settled, as well as a largo, floating, population. But, on market days, farmers, auctioneers, ana salesmen utilised the hotels in, *h° country for accommodation and ousiness purposes, and it may he argued that in that way the country hotelkeeper was providing means of cmcienoy and economy among primary producers. What had been eaid_ with regard to the obligations which hotelkeepers in the city entered into as the result of tho people’s mandate m 1914, that there wpuld bp no alteration in th? existing licensing system until the next general election, equally applied to the country hotelkeeper, who often, at the instance of Licensing Committees, entered into rebuilding and re-furnishing contracts. These contracts involved-large monetary obligations, which, if they were not fulfilled, would have, to he lengthily postponed, ' and might mean absolute rum ip the.,event of further restrictions being imposed Upon, teo.licensed trade. .The country hotelkeeper could' not face the responsibilities he/ now carried with equanimity,' even if the suggestions which had been made were given effect 1 to. ■ A CLAMOROUS MINORITY.

’ “In conclusion" (he said), ‘ I would just say that earlier closing I®, » our opinion, not _ needed from either a moral or a. military point pi view. Those who suggest earlier .?ip s ‘hS an economic point of View are for the most part those people, who dp not use hotels at all. National efficiency, in all its varied- departments, has never reached a higher standard than it has in this country since the waj began, and th.at under the present licensing system. It ,is hepause we consider" it is not patriotic te Create strife between one :class and .another, when, all should he united; ■ that wo have been induced to 'accept the proposed reduction in hours; - put we hold that, it is not fair or. just that a'contract given for a period should be ! varied .to. one man's disadvantage without some adequate compensationWo hold, and hold firmly,. that it is not British or consistent with fait nlav to ignore a compact. Wo hold that .thpre is no reason whatever, either in a moral, military, or economic sense, for the imposition of further restrictions in this regard upon tho people of this country, and than the agitation for earlier closing wpl be found to have had its source in .political disappointment. • But • we rely upon that sense of justice which must actuate the members of the National Cabinet and Parliament, to act, justly and honestly towards .the licensed victuallers of this country, in. the - light of the results of the last election. Let . the National Government remember, that those who cast their votes for the continuance of the existing system numbered '374,000 electors in a vote of - over half a million, and that it i» a clamorous minority—and not a substantial; majority—that is now anxious to deflect the will of the oeoplo, and embarrass the National Government at this time."