DOMINION BREWERIES

Otago Daily Times, Issue 26198, 8 July 1946, Page 8

DOMINION BREWERIES

HIGHLY SUCCESSFUL YEAR PEACE BONUS RECOMMENDED “I must congratulate shareholders on the successful year’s trading which is disclosed,” said the chairman of directors of Dominion Breweries, Ltd. (Mr L. J. Stevens), moving the adoption of the report and balance sheet at the annual meeting of shareholders, which was held in Auckland on July 3. The balance sheet shows a balancing total of £1,258,208, or nearly £50,000 more than the total shown in the previous year’s accounts.. This increase is represented by approximately £6OOO in fixed asests and the balance of approximately £44,000 is in stock-in-trade and sundry debtors. On the liabilities side of the balance sheet mortgage loans and overdraft at the company's bankers both show reductions which total approximately £20,000, while sundry creditors, open accounts, and provision for taxation, show increases totally nearly £55,000. Most of this increase is represented by the larger appropriation for taxes. Need for Taxation Relief “ I do not think it necessary for me to add to the many opinions which have been lately expressed in favour of taxation relief,” Mr Stevens said. “ Such reliefs are essential if business is to progress, and I welcome the recent announcement in the Governor-General’s speech that reductions will be made as early as possible. The results follow a record turnover from the company’s Waitemata Brewery and continued progress in all departments. The already strong financial position of the company has been further strengthened and the balance sheet presented to shareholders must be most gratifying. The profit and loss account shows a gross profit for the year of £353,732. This figure is £48.935 in excess of tjie gross profit earned in the previous year. Charges against profit and loss under the heading of wages, salaries, and othed charges amount to £51,077. Repairs and maintenance, advertising, and contribution to the company's staff provident fund amount to £56,345, and provision for land and income and social security taxes amounts to £194,093. “ But there are other factors besides taxation in which reliefs are urgently required,” he continued. “ The licensed trade still operates under the drastic restrictions contained in the Licensing Emergency Regulations. In my view, these regulations might have been justified in view of emergencies which doubtless existed in 1942 and the following years. Those emergencies no longer exist, and the regulations accordingly are not justified and should now be speedily repealed. The Accommodation Problem •• Efforts which have been made by the directors to further the company’s policy of providing better facilities for the travelling public are still thwarted bv building restrictions The licensed trade does not seem to be recognised as one of our great local industries. Yet provision for the welfare of the travelling public and the general populace is an industry of the greatest importance. It is one which we must provide for ourselves. Unlike many other industries its service and amenities have no alternative scource of origin. They are not capable of being manufactured or produced elsewhere and imported into the country. Ye! industries which have many and varied alternative sources of origin receive preference in the matter of building permits. Hence the anomaly of . manynew industrial building projects proceeding under building permits, while a proved and economic industry which caters for the travelling public is denied opportunity of service and ex pansion of its business. This anomaly should not exist. The public has just cause for complaint at the lack of suitable provision for its welfare and comfort. No efforts will be spared by the directors to provide for substantial improvements in hotel facilities once the present onerous restrictions are removed. “ The directors’ recommendatipn by way of dividend on this occasion is for the payment of a final dividend of 5 per cent., making, with the interim dividend of 5 per cent paid in December last, a total of 10 per cent, for the year. In addition, the directors have decided to mark the occasion of the final cessation of hostilities with all the Axis countries by the recommendation of a peace bonus of 2£ per cent In marking the happier circumstances that warrant the recommendation o' the peace bonus to shareholders, the directors have not overlooked the substantial part in the success of the company which is played by its large staff of employees. Provision is being made to share with the company's stall the peace bonus which shareholders will no doubt receive.