PURCHASE OF HOTELS

Otago Daily Times, Issue 26410, 14 March 1947, Page 6

PURCHASE OF HOTELS

ACQUISITION BY BREWERIES CONTESTED “MONOPOLISTIC TENDENCY” P.A; ' • : CHRISTCHURCH. Mar. 13r - Addressing . the Land .Sales " Appeal ' Court to-day, counsel for the; Crown (Mr S. T. Barnett) asked for a judgment that would deny breweries, wine and spirit merchants, and other holding companies the right to. acquire more hotels than they now own. Throughout the country, he said, a number of applications for approval of the purchase of hotels by such companies had been adjourned while the land sales committees awaited the court’s ruling. On the present application by New Zealand Breweries Ltd. for approval of their purchase of the Bruce Hotel, Akaroa, from Mrs R. H. Eurland. for £5500, Mr Barnett quoted the finding of the Licensing Commission that New Zealand Breweries’ net holdings comprised 186 . hotels, and that it *waf ■finked through its directors with .all the principal hotel-owning companies. With only 1098 licences in the Dominion, the supply was limited, and further purchases would inflate the prices of hotels not yet under company control, as well as strengthen a monopolistic tendency.

For the company, Mr D. E. Wanklyn said that it wished to improve hotel accommodation at holiday resorts, and for this reason many hotels at such places had been bought. Decision was reserved.