CORPORATE CONTROL

New Zealand Times, Volume LII, Issue 12211, 8 August 1925, Page 6

CORPORATE CONTROL

WHAT, IT MEANS The Rav. Canon P. E. James (Auckland), representative of Original Promoters of Corporate Control, said: — I wish to speak as one of the four members of tho Auckland Diccesan Synod who .are personally responsible for the promulgation of the “corporate control'* proposal for the bringing in of a new system of Governmental control, as the best possible solution of the problems which surround the manufacture, sale, and consumption of alcoholic liquors in the Dominion. In our endeaovurs we have been, firstly, actuated by the desive to do whatever might bo possible by meani of legislation to promote temperance, and to help towards the sobriety of tho people of this Dominion. Secondly, by conscientious objections to the policy of national prohibition, and by the refusal of the General Synod of the province of New Zealand to accept prohibition as tho best or only solution of the evils of intemperance—and that in spite of depeated attempts made by prohibitionists to gain the support of the General Synod. Thirdly, bv the evidence afforded through repeated takings of a referendum without resulting in any change, that the Dominion had reached an impasse on this subject. Fourthly, by the. conviction that a scheme of control likely to appeal to tho elector ate as more satisfactory and practicable than Stato purchase, and* control—as that system is at present outlined on tho statute books —would probably gain overwhelming support in a comparative ly short space of time. And fifthly, by the desire to reorrrani.se, within the Church and among religious people generally, the advocacy of a policy of true temperance. We believe that, in the ‘‘corporate control’* proposal, we have devised a

system, simple, practicable, and likely to be effective, such as will give to the Government complete and full control of tlie licensed trade in all its branches, and that without capital CO?t_ tp the., countrt'. Tt isall except convinced prohibitionists, who believe that all attempts at control’ must fail and that attempted abolition must succeed, that along the lines of-* Governmental control, in some form, the solution "of this great and pressing question lies. Many experiments are being made in all parts of the world in this direction, and some of these expert-: ments have met with considerable success. , WHAT FINANCIAL EXPERTS SAY The corporate control proposal will he sufficiently well known to you to make it unnecessary for me to enter; into the details of it. In brief, it is a : system whereby the trade in alcoholic liquors will be brought under the control of the Government by means of a’ corporation to be established, on which,: the Government would at all times’ have a majority control. The corpora-, tion would be the sole manufacturer, importer, and distributor of all alcoho-. lie liquors, and would also be the owner of all licensed premises. It would have full control of the retail trade, seeing that to tho corporation would) be given “sole authority for the issue " and continuance of permits to sell alcoholic liquors,” and that the corpora--tion would also possess full regulative authority over the conditions governing the retail trade. The financial provisions for the introduction of this system eliminate a feature which has tended to make the existing issue of “State purchase and control un-, popular, namely, the capital oost to’ the community of the introduction of that system. Although we, as promoters, do not claim to' be finapeial experts. we have expert advice that the provisions, made for , the, acquiring by the corporation of existing; businesses are sound and equitable. The actual financial interest of the. Government in the business of the corporation, is represented by twenty per oentum of ' the total share issue of the corporation, which would at first he allotted to the Government as unpaid shares .to be ; paid for out of dividends as and when earned. When the capital value of the shares had been thus paid to the vendors the Government would continue r.> participate in the profits as an or- , dinarv shareholder. Tho State would, in addition, from the outset, receive ■ in full any profits over and' above tho maximum of ten per oentum per annum allowed 'for distribution in this proposal. Lest it should be said that there, might he incentive for the Governmentto bring pressure to bear upon the* corporation to increase its profits, to. tho detriment of the general public, if ia provided that surplus profits shall be aoplied, not to the general revenue of the Dominion, but to the sort of expenditure for which tlie Government to make special provision, in-'-eluding matters whirh make directly ! for public health and well-being. HOPING FOR LEGISLATION ’ Seeing that some time must necessarily elapse before such a system, could so far commend itself to the electors of the country as to secure k clear majority at a referendum, «■« have readily associated ourselves with the Moderate League in pressing for the amendment of the present licensing laws, and, after full examination and consideration, have concurred with the proposals of that body, some of which have been incorporated in tho recent report of a Parliamentary committee on this question. We trust sincerely that legislation may he introduced without delay in the directions we suggest, and especially that corporate control may be given opportunity to -orr.meiid itself to tho electors of the Dominion by tho substitution of this issue for that of State purchase and control on the ballot p-ner. We do not seek nor desire qt this juncture any other change in the method of taking the poll on this

question, and would earnestly urge that the Government shall not yield to the bollcitations df those who would entirely eliminate the “middle issue,'’ along the lines of which we believe the ultimate solution of th,is matter lies. As the original conveners of the conference which brought into existence the New Zealand Licensing Reform Association, we would like to conclude by ‘expressing our belief- that the amalgamation of the various bodies which form this deputation constitutes a distinct advance in the direction of temperance reform in this country. It should be an • encouragement to the Government to proceed fearlessly withlegislation along sound lines, that' those making the requests now being placed before you include not only those who are actuated solely by moral reasons, and those who are swayed by the consideration' of the material interests of the Dominion as well, hut also those who are engaged in - the business as traders in alcoholic liquors. We . feel that, in bringing these bodies together, we have_done a goad service to this Dominion in~relation to the licensing question, and we trust that the Government will now do its part by putting into legislative form the proposals which we sincerely believe are practical measures in the interests of true temperance.