INVERCARGILL LICENSING TRUST SECOND ANNUAL REPORT, FOR THE YEAR ENDED 31st MARCH, 1946

Appendix to the Journals of the House of Representatives, 1946 Session I, H-24

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1946 NEW Z EALAND

INVERCARGILL LICENSING TRUST SECOND ANNUAL REPORT, FOR THE YEAR ENDED 31st MARCH, 1946

Presented to both Houses of the General Assembly pursuant to the Invercargill Licensing Trust Act, 1944, Section 28

Members of the Invercargill Licensing Trust have pleasure in presenting their second annual report and balance-sheet. Progress made during the year has been satisfactory, considering the numerous difficulties encountered. Up to date we have not been able to provide sufficient premises to accommodate the travelling public or to provide conditions satisfactory to the members for sale of liquor and refreshments. We have, however, renovated and enlarged our leading hotel, which will, we think, bring it to a very highstandard, as would be expected of the Trust. The only permit granted for a new hotel was that for Hotel Southland, which should be completed in three to four months time. This will provide accommodation close to the principal public hospital and serve the district of South Invercargill. During the year the Trust has acquired certain necessary buildings. One building is to supplement our store accommodation, the other to extend accommodation of the leading hotel. During the year we also acquired Deschler Hotel and Hotel Avenal, and have, in addition to renovating same, introduced the sale of liquor. The Brown Owl Restaurant experiment continues to be successful, except from a financial standpoint, the difficulty being that this class of business cannot carry the burden of licensed-hotel workers' wages. The sale of liquor in these premises is only an additional amenity to the restaurant service and is far from being the principal source of revenue. This brings about the anomalous position of the Trust having to pay licensed-hotel workers' wages to employees the majority of whom are not in any way connected with the sale of liquor or the running of an hotel. None the less, we think the experiment well worth the trying and that it should be continued. Licensing Commission The Chairman of the Trust appeared before the Commission and gave evidence covering an extensive survey of the Trust's operations and intentions. Southland Brewery During the year the Trust acquired a substantial holding in this brewery and entered into an agreement controlling indiscriminate sales of liquor in our area, a matter which had previously given the Trust a considerable amount of concern. This arrangement is working most satisfactorily. It brings the sale of liquor from this source more into line with the ideals aimed at by the Trust, as well as giving an assured supply.

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Finance The Trust has repaid the original £50,000 borrowed from the Treasury, together with interest accrued, and Ministerial consent has been given for the Trust to borrow up to £275,000 from the Bank of New Zealand by a charge over the Trust's assets. As at 31st March the bank balance was a debit of £206,980 3s. 9d. Book value of assets total £288,362 ss. Bd., less losses £12,649 9s. 2d., which equals £275,712 16s. 6d., but this figure can be assessed much higher if the license value is taken into consideration or if assessed on a turnover of over £214,554 ss. sd. in liquor per annum. The total cash turnover for the twelve months ended 31st March was £266,799 10s. Id., leaving a taxable profit of £35,621 18s. 3d. After deducting income and social security taxes, the balance to carry forward will be £14,466 lis. 6d. for the year and nine months. General At the end of its complete year of operations, members are satisfied that the policy of the Trust is meeting with an ever-increasing good will from the public, even from those who were critical from either point of view twelve months ago. The general behaviour, including peace celebrations period, was, we think, irreproachable, and we think that the police report could support this statement. The strict observance of hours and general law as to trading has continued to be the inviolable rule of the Trust, in spite of the general unpopularity of the present licensing restrictions. It, of course, will be several years before a complete judgment can fairly be passed on the success or otherwise of Trust control ideals. H. Ritchie, Chairman.

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INVERCARGILL LICENSING TRUST Trading Account for Period ended 31st March, 1946

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i Appleby Avenal Brown Owl j Cecil Clyde Deschler Grand Kelvin Newburgh Head Totals j Hotel. Hotel. -Restaurant. Hotel. Hotel. Hotel. Hotel. Hotel. Buildings. Office. i 1 ! r 1 Dr. 1 £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Stock, 1st April, 1945.. 1 421 11 3 .. 1,554 8 9 8 6 1! 707 8 7 .. 1,200 17 2 770 7 7 .. .. 4,662 19 5 Purchases — j i ! „ Cellar .. .. 18,697 9 10 1,645 5 9 6,106 13 8 2.390 19 726,815 14 8 2,357 2 334,217 8 141,129 4 4.. .. 133,359 18 2 Provisions.. .. 50 5 5 1,181 14 212,446 19 10 1,461 5 6 109 6 6 2,660 1 10 2,502 10 11 124 13 7 .. .. 20,536 17 9 Gross profit .. .. 9,842 14 1 3,183 15 619,127 18 6 6,826 12 615,000 16 10 8,279 2 620,274 9 826,643 19 1 3,711 1 2 .. 112,890 9 10 29,012 0 7 6,010 15 539,236 0 910,687 3 842,633 6 713,296 6 7 58,195 5 1068,668 4 7 3,711 1 2 .. 271,450 5 2 Gr. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Bartakings.. .. 28,727 7 3 3,189 17 912,086 7 0 5,267 14 942,152 14 3 4,709 6 550,359 5 868,061 12 4 .. .. 214,554 5 5 Board and residence .. 2,646 16 6 .. 4,002 6 2 .. 8,185 12 0 5,756 5 0 .. .. .. 20,590 19 8 Restaurant .. .. j .. .. 25,415 10 11 .. .. .. .. •• •• •• 25,415 10 11 Bent .. .. 68 11 2 .. 170 10 0 1,241 2 9 .. 68 0 0 664 1 9 .. 3,711 1 2j .. 5,923 6 10 Stock, 31st March, 1946 „ , Cellar .. .. 215 9 11 108 8 5 140 14 7 90 9 0 475 19 1 113 6 0 1,244 19 7 598 17 11 .. .. 2,988 4 6 Provisions.. .. 0 12 3 65 12 9 1,422 18 3 85 11 0 4 13 3 220 2 2 170 13 10 7 14 4 .. .. 1,977 17 10 29,012 0 7 6,010 15 539,236 0 910,687 3 842,633 6 7 13,296 6 7 58,195 5 1068,668 4 7 3,711 1 2 .. 271,450 5 2

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0r- £ s - d - Net profits brought down ... .. .. 46,108 10 10 £46,108 10 10

INVERCARGILL LICENSING TRUST— continued Profit and Loss Accounts for Period ended 31st March, 1946

Dr. £ s. d. Net losses brought down .. .. .. .. 13,147 17 1 Net profit to Profit and Loss Appropriation Account .. 32,960 13 9 £46,108 10 10

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— Appleby Hotel. Avenal Hotel. Brown Owl Restaurant. Cecil Hotel. ' | Clyde | Hotel. ) Deschler j Hotel. Grand Hotel. Kelvin Hotel. 1 Newburgh Buildings. 1 Head I Office. Totals. Dr. Wages : Staff Salary : Manager Trust honoraria Sundry charges Cartage and freight Truck-running Maintenance Furniture replacement Rents, rates, and insurance Interest Laundry Goodwill written off .. Land-tax Depreciation — Buildings Furniture Trucks .. Fuel Unauthorized expenditure Net profit Cr. Gross profit .. Net loss £ s. d. 2,225 15 0 468 14 10 106' 3 5 14 18 4 140' 12 2 91 3 8 61 1 4 138 11 2 13 12 3 61 9 7 81 2 8 !! 6,439 9 8 £ s. d. 1,040 5 10 399 2 10 266 13 2 13 14 10 165' 7 9 42 19 9 75 9 0 151 12 0 99 17 6 54 7 10 124 2 11 750 2 1 £ s. d. 12,144 10 11 510 18 6 885' 2 9 230 9 6 882' 5 7 1,192 17 3 1,422 17 9 545 15 2 96 9 4 113 8 1 976 6 7 126 17 1 £ s. d. 1,284 6 11 554 0 0 732' 5 17 1 9 283' 19 8 263 13 5 289 15 9 446 8 1 115 11 0 151 14 0 308 19 6 125 11 5 2,253 5 7 £ s. d. 3,857 8 0 505 5 8 163 15 10 8 2 6 60 14 11 186 15 5 146 9 11 208 1 2 32 0 2 156 3 11 178 5 4 9,497 14 0 £ s. d. 3,087 9 0 523 19 6 656 7 1 21 16 5 - 752' 9 9 370 3 7 251 2 5 454 16 0 121 13 8 642 8 7 375 17 11 1,020 19 0 £ s. d. 4,603 10 7 1,656 19 7 1,04817 5 47 7 2 288' 15 11 551 14 11 1,273 18 5 2,536 17 10 252 9 5 349 16 10 546 8 2 7,117 13 5 £ s. d. 5,572 13 5 630 13 1 152 9 5 9 9 6 9910 4 251 7 9 235 3 4 381 4 7 55 15 7 161 14 2 191 7 11 18,902 10 0 £ s. d. 512 9 4 73' 4 4 994' 6 0 44 19 9 656 8 2 1,182 9 7 437 9 9 183 6 11 175 'l3 0 £ s. d. 3,237 11 9 1,075 0 0 1,312 10 0 1,224 11 10 3,264 17 4 118 7 8 425 19 0 17 6 3 430 6 0 303 19 3 619' 1 0 617 9 1 77 5 0 197 7 8 82 12 5 £ s. d. 37,566 0 9 6,324 14 0 1,312 10 0 5,309 10 8 3,627 17 4 118 7 8 4,094 1 1 3,013 1 9 4,842 12 1 6,349 14 10 787 8 6 151 14 0 619 1 0 2,903 7 4 2,859 14 10 197 7 8 175 13 0 82 12 5 46,108 10 10 9,842 14 1 3,183 15 6 10,127 18 6 6,826 12 6 15,000 16 10 8,279 2 6 20,274 9 8 26,643 19 1 4,260 6 1013,004 4 3 ... 126,443 19 9 £ s. d. 9,842 14 1 £ s. d. 3,183 15 6 £ s. d. 19,127 18 6 £ s. d. 6,826 12 6 £ s. d. 15,000 16 10 £ s. d. 8,279 2 6 £ s. d. 20,274 9 8 £ s. d. 26,643 19 1 £ s. d. 3,711 1 2 549 5 8 £ s. d. *405 12 10 12,598 11 5 £ s. d. 113,296 2 8 13,147 17 1 0,842 14 1 3,183 15 6 19,127 18 6 6,826 12 6 15,000 16 10 8,279 2 6 20,274 9 8 26,643 19 1 4,260 6 10jl3,004 4 3 126,443 19 9 * Rent, £139 2s. fld. : cellar, £221 10s. 4d.; goods, £45. ■

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Profit and Loss Appropriation Account , , Dr ' £ s - d- Or. £ s . d . Income-tax .. .. .. .. ... 14,169 8 5 Net profit, 1944-45 .. .. .. .. ..22 359 19 11 Social and national security tax .. .. .. 3,065 10 10 Balance forward .. .. .. .. .. 5,125 0 8 £22,359 19 11 £22,359 19 11 Provision for— £ s. d. £ s . d. Income-tax, 1946 .. .. .. .. .. 17,631 18 1 Balance brought down .. .. .. .. 5,125 0 8 Social and national security tax .. .. .. 3,504 9 7 Net profit, 1945-46 .. .. 39'org 13 9 Balance 16,949 6 9 £38,085 14 5 ' £38,085 14 5

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INVERCARGILL LICENSING TRUST—continued Details op Charges, Maintenance, Furniture Replacements, Head Office Salaries and Wages, Etc. Charges £ s. d. Electricity .. .. .. .. .. .. .. .. .. 977 11 6 Licenses, hotel . . . . . . . . .. . . . . . . 310 0 0 Annual charges (telephone and Post Office box rentals, heavy-traffic license, boiler and lift certificates, bank charges, &c.) .. .. .. .. .. 283 18 0 Disinfectant .. . . .. .. . . .. .. .. 132 18 9 Printing and stationery (includes some printing of cheques and embossing) .. . . 866 1 11 Signwriting .. .. .. .. .. .. .. .. .. 116 1 5 Legal fees (including stamp duties, search fees, &c.) .. .. .. .. 1,015 5 3 Flowers .. . . .. .. .. .. . . .. . . 162 0 4 Stamps, telegrams, and bureaux .. .. .. .. .. .282 14 11 Advertisements (staff, tenders, sites, Managers, &c.) .. .. .. .. 63 19 10 Hireage (furniture and crockery) .. . . .. . . .. .. 53 2 11 Valuation fees (witness expenses, plans, &c., re Grand, Cecil, Appleby, Railway, &c.) 344 11 8 Travelling-expenses (Chairman, members, Managers for interview) .. .. 36 19 3 Daily papers (all hotels and Head Office) .. .. .. .. .. 138 18 4 Advertising (Brown Owl, Avenal, &c.) .. .. . . .. .. 122 9 0 Building permit .. .. .. .. . . .. .. .. 44 0 0 Audit fees .. .. .. .. .. .. .. .. .. 240 6 0 Sundries .. .. .. . . .. .. . . . . .. 118 11 7 £5,309 10 8 Maintenance £ s. dPlumbing repairs .. .. .. .. .. .. .. .. 413 10 1 Painting, glazing, and signwriting (chiefly Newburghs, Brown Owl, and Elm wood).. 1,454 18 6 Electrical repairs .. .. . . . . .. .. .. .. 131 15 10 Cleaning windows (Brown Owl and Head Offiee) .. .. .. .. 63 6 6 Plastering and brickwork (chiefly Newburghs and Deschlers) .. .. .. 128 19 1 Chimney-sweeping (Grand and Brown Owl) ... .. . . .. .10 13 6 Tar and sand (Newburgh roof) . . .. .. . . .. .. 36 19 0 Fixture repairs (chiefly Newburgh and Grand) . . .. .. .. .. 87 16 6 Gravel for roads and rights-of-way .. . . . . . . . . . . 17 15 6 Wages and materials, &c. (for carpentering repairs to all of Trust premises, including Head Office and store) .. .. .. .. .. .. .. 1,733 14 11 Sundries .. .. .. .. .. .. .. .. .. 14 11 8 £4,094 1 1 Furniture Replacements £ s. d. Electric globes .. .. .. . . .. .. .. .. 78 18 0 Glasses .. .. .. .. .. . . . . .. .. 491 0 1 Crockery and cutlery .. . . . . . . .. .. .. 521 2 10 Table-cloths, smocks, linen, &c. .. .. .. .. .. .. 392 4 10 Brushes, mops, and ironmongery .. .. .. .. .. .. 13 7111 Piano-tuning and gramophone records .. .. .. .. .. .. 3166 Blinds .. .. .. .. .. .. . . .. . . 54 14 2 Lino, carpets, and rugs (replacement and cleaning) .. .. .. .. 630 10 2 Keys (various hotels) .. .. .. .. .. .. .. 4 15 7 Rubber tubing for beer equipment .. .. . . .. . . 16 14 0 Repairs to furniture and equipment . . . . .. .. .. .. 552 17 5 Coffee tables, trays, &c. .. .. .. .. . . .. . . 80 1 3 Difference in replacement value, cash registers .. .: .. .. .. 38 12 6 Sundries .. .. .. .. .. .. .. .. .. 10 3 4 £3,013 1 9

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INVERCARGILL LICENSING TRUST—continued Salaries and Wages, &c., Head Office and Trust Honoraria £ s. d. Head Office.. .. .. .. .. .. .. .. .. 3,237 11 9 Bulk store Maintenance staff Secretary-Manager . . .. .. .. .. .. .. 1,075 0 0 Trust honoraria .. .. .. .. .. .. .. .. 1,312 10 0 £5,625 1 9 Details of Unauthorized Expenditure for Period ended 31st March, 1946 £ s. d. Red Cross appeal .. .. .. .. .. .. .. .. 500 Patriotic Council .. .. .. .. .. .. .. .. 10 0 0 Hotel Workers' Union ball .. .. .. .. .. .. .. 550 Trust staff picnic . . . . . . .. . . .. .. .. 10 0 0 Entertainment of outstanding guests, and refreshments .. .. .. . . 52 7 5 £B2 12 5 Statement of Balances as at 31st March, 1946 Dr. £ s. d. £ s. d. Or. £ s. d. • £ s. d. Bank Account .. 206,980 3 9 Bank of New Zealand .. 205,353 1 2 Prank Holloway Outstanding cheques .. .. 3,285 6 2 Lighting Fund 104 12 8 .. Cash on hand .. 1,658 3 7 Post Office Savings-bank account .. .. 104 12 8 £lO4 12 8 206,980 3 9 ! £1,762 16 3 208,638 7 4 - 104 12 8 1,762 16 3 £206,875 11 1 £206,875 11 1

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INVERCARGILL LICENSING TRUST— continued Balance-sheet as at 31st March, 1946

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Appleby Avenal Brown Owl Cecil Clyde Deschler ! Grand Kelvin | Newburgh Head Tnfol Hotel. Hotel. Restaurant. Hotel. Hotel. Hotel. * Hotel. Hotel. | Buildings. Office. lotai. Liabilities £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. | £ s. d. £ s. d. 1 £ s. d. £ s. d. £ s. d. Bank 208,638 7 4 Less cash in hand .. 247 "l2 8 33' 0 3 67' 9 10 52' 8 0 34i' 17 3 7513 9 428' 5 7 411 16 3 1,658 3 7 I 206,980 3 9 F. Holloway Lighting 104 12 8 104 12 8 Fund Sundry creditors 673 11 1 145 9 11 1,361 9 7 207 1 8 1,087 3 3 469 16 8 830 4 5 1,991 4 8 45 13 10 10,322 18 1 17,134 13 2 ♦Property Acquisition 858 18 10 826 2 9 1,854 17 4 1,474 1 8 5,014 0 7 Adjustment Account Depreciation reserves — Furniture and fittings 140 7 4 124 2 11 1,764 12 11 128 5 1 247 11 6 375 17 11 | 618 14 6 341 17 9 183 7 9 97 10 9 4,022 8 5 Motor-vehicles 249 6 6 249 6 6 Buildings 00 *9 ts 75 ' 0 4 175' 0 1 376' 9 6 270 12 9 642' 8 7 | 467' 0 7 278' 9 6 68i' 5 11 642 2 0 3,697 11 7 Accumulated profit 5,125 0 8 Profit 6,439' 9 8 750' 2 1 126 17 1 2,253' 5 7 9,497 14 0 1,020 19 0 7,117 13 5 18,902 10 0 46,108 10 10 288,436 8 2 Assets £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. ! £ s. d. £ s. d. £ s. d. £ s. d. Imprest advances 100 0 0 35 0 0 86 6 0 35 0 0 150 0 0 45 0 0 140 0 0 200 0 0 20 0 0 811 6 0 Post Office Savings-bank 104 12 8 104 12 8 account Brewery shares 3,014 11 0 3,014 11 0 Stocks on hand — Cellar 215 9 11 108 8 5 140 14 7 90 9 0 475 19 1 113 6 0 1.244 19 7 598 17 11 7,785 17 9 10,774 2 3 Provisions 0 12 3 65 12 9 1,422 18 3 85 11 0 4 13 3 220 2 2 170 13 10 7 14 4 5,525 16 4 7,503 14 2 Furniture and fittings 966 0 7 1,510 1 2 11,071 14 10: 1,667 11 10 2,098 5 2 4,533 15 4 5,727 6 1 2,155 16 10 1,093" 3 7 1,182 4 2 32,. 005 19 7 Suspense Account: 15,533 0 5 15,533 0 5 Building alterations Motor-vehicles 1,038 17 2 1,038 17 2 Land and buildings .. 3,746' 9 0 5,010 19 6 6;306' 3 4 29,135' 2 1 6,93212 6 12,420 11 5 54,5oi 7' 6 8,125 15 1 44,357 16 6 21,159 1 3 191,689 18 2 Deposit on agreement to 250 0 0 250 0 0 purchase Sundry debtors 84 17 7 74 9 6 406 3 10 80 15 11 119 9 0 190 5 3 241 1 Hi 184 19 0 63 18 4 24 14 4 1,470 14 8 Unexpired licenses 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 20 0 0 10 0 0 90 0 0 Goodwill 2,415 0 0 900 0 0 7,200 0 0 486 15 0 11,001 15 0 Losses 549' 5 8 12,598 11 5 13,147 17 1 288,436 8 2

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* Contingent liability for awards made under section 90 of the Public Works Act, 1928, in respect of the following properties taken under the above Act and amount not yet determinable:— Appleby .. 6/27/A574 Invercargill Tn., Section 12, Block XXIII .. 0 10 Gazette notice, 7th December, 1944. Clyde .. 6/27/A286 Invercargill Tn., North Part Section 22, Block XIV 1 6/27/A 287 Invercargill Tn., Section 22, Block XIV .. • • I n n n+v. T„i,r mje 6/27/A2BB Invercargill Tn., Section 22, Block XIV .. ~f° 1 0 Gazette notice, 9th July, 1945. 6/27/A289 Invercargill Tn., Section 22, Block XIV .. .. J Head Office 6/27/E977 Strathearn T.P., Lots 1, 2, 4, D.P. 692, Block Ia .. 0 1 16 ■ 4 Gazette notice, 7th December, 1944. Kelvin .. 6/27/A192 Invercargill Tn., South Part Section 22, Block X .. 0 0 27-2 Gazette notice, 26th February, 1945. I hereby certify that the statement of accounts and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.— J. P. Rutherford, Controller and Auditor-General.

Invercargill Licensing Trust: Eric. B. Barnett, Secretary-Manager.

By Authority: E. V. Paul, Government Printer, Wellington.— 1946,

Approximate Cost of Paper.—Preparation, not given ; printing (533 copies), £l6

Price 6d .]

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