INVERCARGILL LICENSING TRUST THIRD ANNUAL REPORT, FOR THE YEAR ENDED 31st MARCH, 1947

Appendix to the Journals of the House of Representatives, 1947 Session I, H-24

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1947 NEW ZEALAND

INVERCARGILL LICENSING TRUST THIRD ANNUAL REPORT, FOR THE YEAR ENDED 31st MARCH, 1947

Presented to both Houses of the General Assembly pursuant to the Invercargill Licensing Trust Act, 1944, Section 28 1

Members of the Invercargill Licensing Trust have pleasure in presenting their third annual report and balance-sheet. Progress during the year has, considering the difficulties with regard to labour and materials, &c, been good. The Grand Hotel renovations and alterations have now been completed and the hotel is fully open to the public. A start has been made on the Federal annex, but only the main lounge and a new roof is all that we have been permitted to do. Unfortunately, a fire did considerable damage to the Federal portion and ruined a portion of the new roof. The Chief Building Inspector has inspected the damage and has promised us a permit to complete our alterations sooner than waste money reconditioning. This will make the Grand Hotel one of the best hotels in New Zealand. Hotel Southland has now been completed and was opened in November last. Both the Grand and Southland have been very highly commended for their comfort, appointments, and service. They also feature the Trust's policy of " all sit-down drinking," which is proving reasonably successful, if not from the financial angle. The acquiring of the Rugby Park block was completed at the beginning of November, and a bottle-store was opened just prior to Christmas to help serve that area. Owing to lack of building permits there is still insufficient accommodation both for the travelling public and bar patrons. The Brown Owl Restaurant is proving a worth-while experiment, the sale of drink now being only a small part of the whole. However, having to pay hotel workers' wages to a greater portion of the staff, including waitresses, cooks, and to the Elmwood staff, has made it almost impossible to make this venture pay its way. We can see no reason why the restaurant staff should be paid different wages from the average restaurant, as, outside of the bar, attendants have nothing to do with the sale or handling of drink. During the year two increases in the awards have taken place, one operating from the commencement of the year and the other from December. These apply, of course, to all branches of the Trust's activities. Wages and costs are all on the increase, whilst tariffs and prices received remain the same, hence the decrease in this year's profits. Southland Brewery The Trust have acquired a further number of shares and have now two directors on the board who are Trust members. Also, an agreement has been entered into which improves and consolidates our position with regard to supplies and brewery sales. Finance As at 31st March, 1947, the bank balance was a debit of £277,679 16s. Book value of assets included special reserves £356,642 16s. 5d., and if the license value is taken, into account £600,000 would not be too high if assessed on a turnover of

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£319,288 19s. 3d. per annum. The taxable profit for the year was £26,561 18s. 9d. after allowing for income-tax, social security charge, less refund from last year owing to finalizing of Grand Hotel Suspense Account, the net profit is £17,504 lis. lOd. The members of the Trust are at present considering placing on the market a debenture issue to cover present indebtedness. Distribution of Profits After closing the 1945-46 accounts the Trust distributed the following : the Council of Sport, £4,000 ; Civic Band, £250 ; Southland Museum, £lOO ; Ladies' Pipe Band, £5O ; First Battalion Band, £lOO ; Progress League, £lOO ; Southland Domain Board, £200; Southland Regional Planning Council, £200; Y.M.C.A., £500; Boy Scouts Association, £5OO ; a total of £6,050. Further distributions will also be made this year after the finalizing of the balance-sheet. Hours, etc. Six o'clock closing with no after-hour trading leads to large sales of bottled drink. We are inclined to think that evening drinking-hours would at least restrict drinking in homes or silent drinking. Some consideration must be given to the drunkenness figures of Tasmania, where the convictions have gradually declined since the adoption of the following trading-hours : 12 (noon) to 2 p.m. and 3 p.m. to 10 p.m. Tasmania, incidentally, has the lowest drunkenness figures in Australasia. From these facts we assume that 5 p.m. to 6 p.m. hectic drinking on an empty stomach is the cause of a large amount of drunkenness and that drinking after the evening meal leads to more leisurely drinking and making intoxicating drink what it should be —a social amenity. We look forward to the time when our saloons can be called social centres with drink only a small part of the entertainment. We already can see this tendency in our sit-down saloons. While complaints may be made on the slow service of drink in our hotels, we think that the service of drinks on request is preferable to the practice of barmen filling the empty glass or shouting when a round of drinks is completed. There is still the problem of youthful drinkers. Our staff have great difficulty in assessing ages, but do their best to prohibit doubtful customers from procuring drink. We think that this is where our churches or prohibition friends could give us some practical assistance. The criticism of these people has, we find, been most fair, but their open patronage in our saloons, or more particularly in our restaurant, the Brown Owl, would do much to help in the youthful drinking problem. We claim, however, that the Trust and their servants do everything possible to prohibit under-age drinking. General At the end of its second complete year of operations members are becoming more satisfied that the policy of the Trust, now that it is becoming more widely known, is progressing along the right lines, as the general behaviour of our patrons is very good indeed, and we think that the police could again support this statement. Our strict observance of hours and the general law as to trading still continues to be the inviolable rule of the Trust and is strongly impressed on all new managers and staff. A staff superannuation scheme was inaugurated during the year. We wish to pass a word of praise to our staffs. Very few of them had hotel experience previous to employment with the Trust, and, taken generally, they have given every assistance in carrying out the policy adopted by our members. However, until our full building programme is completed no complete judgment, can be passed as to the success or otherwise of Trust control. Hugh Ritohte, Chairman.

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INVERCARGILL LICENSING TRUST Trading Account for the Year ended 31st March, 1947

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Appleby Avenal Brown Owl Cecil Clyde Deschler Grand Head Kelvin Rugby Park Southland Totals. Hotel. Hotel. Restaurant. Hotel. Hotel. Hotel. Hotel. Office. Hotel. Bottle-store Hotel. Dr. £ s. d. £ s. fl. £ s. (1. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ 8. d. £ s. d. £ s. d. £ s. d. Stocks, 1st April, 1946— Cellar 215 9 11 108 8 5 140 14 7 90 9 0 475 19 1 113 6 0 1244 19 7 598 17 11 2988 4 6 Provisions 0 12 3 65 12 9 1422 18 3 85 11 0 4 13 3 220 2 2 170 13 1.0 7 14 4 1977 17 10 Purchases — Cellar 20798 10 a 3131 0 8 4689 1 7 2755 19 3 29485 18 8 3070 6 8 48803 7 8 41203 19 8 2318 14 4 3700 19 6 159957 18 8 Provisions 67 11 3 1250 10 4 15316 11 6 1766 16 7 154 16 1 3497 12 0 7886 4 11 235 3 8 0 15 10 606 6 5 30782 8 7 Gross profit .. 10124 9 6 3680 8 1 22380 15 7 8094 1 4 14826 15 4 9068 14 9 35885 0 7 22827 0 6 781 6 2 2592 6 2 130260 18 Q 31206 13 7 8236 0 3 43950 1 6 12792 17 2 44948 2 5 15970 1 7 93990 6 7 64872 16 1 3100 16 4 6899 12 1 325967 7 7 Or. £ s. d. £ s. (1. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. (1. £ s. d. Bar takings 30827 6 2 5583 14 0 9223 12 0 6118 8 1 44363 12 0 6554 4 2 73778 9 4 64289 16 3 2804 1 3 5302 13 0 248845 16 3 Board and residence .. 2495 14 9 4631 13 6 8754 0 9 17440 2 7 1253 10 0 34575 1 7 Restaurant 30134 12 9 30134 12 9 Rents, &c. .. 68 6 4 2714 11 0 1849 12 10 179 17 11 828 11 9 91 9 10 0 19 0 5733 8 8 Stocks, 31st March, 1947— Cellar 291 13 11 79 1.9 9 159 16 6 79 9 10 571 16 2 120 7 7 1434 3 2 568 6 10 205 5 3 231 19 9 3742 18 9 Provisions 19 7 2 76 11 9 1717 9 3 113 12 11 12 14 3 361 11 2 508 19 9 14 13 0 110 10 4 2935 9 7 31206 13 7 8236 0 3 43950 1 G 12792 17 2 44948 2 5 15970 1 7 93990 6 7 '.' 64872 16 1. 3100 16 4 6899 12 1 325967 7 7

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Dr. £ s. d. Or. £ s. d. Net losses brought down .. .. .. .. 14,198 15 11 Net profits brought down .. .. .. .. 40,760 14 8 Balance to Profit and Loss Appropriation Account . . 26,561 18 9 £40,760 14 8 £40,760 14 8

INVERCARGILL LICENSING TRUST— continued Profit and Loss Accounts for the Year ended 31st March, 1947

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Appleby Avenal Brown Owl Cecil Clyde Desehler Grand Head Kelvin Rugby Park Southland Totals. Hotel. Hotel. Restaurant. Hotel. Hotel. Hotel. Hotel. Office. Hotel. Bottle-store. Hotel. Br. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Wages: Staff 2262 4 1 1682 13 3 14315 17 0 1713 0 8 3970 17 3 4598 7 0 10993 7 11 3897 15 8 5252 8 9 Ill 17 2 1060 19 4 49859 8 1 Salary: Manager 529 12 3 503 6 11 780 0 0 592 11 5 494 0 0 592 15 4 1513 2 5 1075 0 0 938 0 0 107 16 3 195 0 0 7321 4 7 Honoraria: Trust 10505 0 0 1050 0 0 members Expenses 299 18 0 238 11 5 1056 11 1 228 9 9 190 14 3 570 17 9 1771 0 6 1523 15 10 205 18 5 40 14 10 163 12 8 6290 4 6 Cartage and freight .. 2 3 9 5 9 9 197 9 5 0 17 0 2 0 0 6 17 49 0 11 2763 2 0 4 16 3 9 12 6 3040 13 2 Truck-running Furniture replacement 198 0 7 198 0 7 117 5 6 245 io 10 1823 6 11 376 io 0 199 5 11 819 5 9 1990 13 6 1 8 4 335 1 5 26 16 1 5935 4 3 Maintenance 124 10 9 257 4 10 1230 13 11 255 17 2 175 6 1 607 0 10 2746 12 0 523 5 11 166 16 5 58 16 0 105 6 10 6251 10 9 Bents, rates, insurance 100 13 0 117 11 10 1184 10 4 501 10 8 87 9 6 278 7 8 1885 16 11 438 12 5 490 13 3 33 14 0 52 12 5 1 5171 12 0 Interest 103 14 3 193 4 8 1844 11 0 897 19 2 261 14 3 478 1 2 3712 15 10 617 2 5 246 3 8 92 0 10 560 0 3 9007 7 6 Laundry 20 4 2 104 7 11 10 9 5 138 12 6 44 6 3 309 10 8 694 4 8 62 15 11 99 10 7 14S4 2 1 Land-tax 1009 1 0 1009 1 0 DepreciationBuildings 51 4 10 54 8 6 526 1 9 267 G 2 153 3 8 118 3 5 1168 0 5 274 10 6 156 17 10 32 0 8 82 7 5 2884 5 2 Furniture 102 10 8 173 13 1(J 1018 10 11 179 11 9 214 19 4 422 5 2 1511 19 6 155 0 2 205 13 6 8 6 6 179 16 7 4172 7 11 Plant .. 76 8 3 15 19 6 943 3 3 1035 11 0 Trucks 159 12 2 159 12 2 Unauthorized expenditure Net profit .. 126 14 9 126 14 9 6410 8 3 104 4 4 2925 15 7 9032 18 10 267 18 5 6905 2 9 14761 15 1 295 19 11 56 11 6 40760 14 8 10124 9 6 3680 8 1 24064 10 0 8094 1 4 14826 15 4 9068 14 9 35885 0 7 13813 1 9 22827 0 6 781 6 2 2592 6 2 145757 14 2" Cr. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s.d. £ s. d. £ s. d. £ s.d. £ s. d. Gross profit 10124 9 6 3680 8 1 22380 15 7 8094 1 4 14826 15 4 9068 14 9 35885 0 7 *1298 0 3 22827 0 6 781 6 2 2592 6 2 131558 18 3 Net loss 1683 14 5 12515 1 6 14198 15 11 10124 9 6 3680 8 1 24064 10 0 8094 1 4 14826 15 4 9068 14 9 35885 0 7 13813 1 9 22827 0 6 781 6 2 2592 6 2 145757 14 2 *Cel lar profit, £7 39 3s. lOd.; goods profit, £31 13s. 2d.; Divident Account, £375 6s. 6d .; rents, £151 16s. 9d.

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Profit and Loss Appropriation Account Dr. £ s. d. Gr. £ s. d. Income-tax and social security tax payments (1946) .. 20,911 4 11 Balances brought down (in respect of year 1944-45) .. 5,125 0 8 Donations in accordance with section 29 of the Invercargill Net profit, 1945-46 .. .. .. .. .. 32,960 13 9 Licensing Trust Act, 1944 .. .. .. 2,300 0 0 Balance .. .. .. .. .. .. 14,874 9 6; £38,085 14 5 £38,085 14 5 £ s. d. £ s. d. Additional depreciation on plant and buildings .. .. 13,198 7 6 Balance brought down .. .. .. .. 14,874 9 6 Provision for— £ s. d. Net profit, 1946-47 .. .. .. .. .. 26,56118 9 Income-tax, 1947 .. .. .. 9,403 1 1 Social security tax .. .. .. 1,415 4 4 ; 10,818 5 5 ! Less adjustment in respect of previous year .. .. .. 1,760 18 6 9,057 6 11 Balance .. .. .. .. .. ..19,180 13 10 £41,436 8 3 £41,436 8 3

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INVERCARGILL LICENSING TRUST— continued Details of Expenses, Furniture Replacements, and Maintenance Expenses £ s. d. Stamps .. .. .. .. .. .. .. .. .. 139 8 7 Bureau .. .. .. .. .. .. .. .. .. 542 2 0 Signwriting .. .. .. .. .. .. .. .. .. 9 9 8 Electricity .. .. .. .. .. .. .. .. .. 1,328 14 8 Annual charges (telephone and post-office-box rentals, heavy-traffic licence, boiler and lift certificates, bank charges, and Auditor's fees) .. .. .. 1,332 8 3 Printing and stationery .. .. .. .. .. .. .. 1, 001 110 Flowers .. .. .. .. .. .. .. .. .. 282 14 2 Daily papers .. .. .. .. .. .. .. .. 201 15 10 Disinfectant .. .. .. .. .. .. .. .. 229 4 5 Staff advertisements .. .. .. . . .. .. .. 95 1 0 Detail paper .. .. . . .. .. .. .. .. 56 10 10 Advertising .. .. .. .. .. .. .. .. .. 173 5 0 Legal fees .. .. .. .. .. .. .. .. .. 425 16 9 Travelling-expenses . . .. .. .. .. ~ .. .. 74 5 6 Discount .. .. .. .. .. . . .. .. .. 119 3 3 Sundries .. .. .. .. .. .. .. .. .. 279 2 9 £6,290 4 6 Furniture Replacements £ s. d. Glasses .. .. .. .. .. .. .. .. .. 600 18 4 Repairs to appliances .. .. .. .. .. .. .. 794 5 11 Crockery .. .. .. .. .. . . .. ~ .. 628 9 3 Linen, &c. .. . . .. . . .. .. .. .. .. 841 1 8 Globes, electric .. .. .. .. .. . . .. .. 101 8 7 Cutlery .. .. .. .. . . .. .. . . .. 440 12 6 Hardware .. .. .. .. .. .. .. .. .. 251 5 0 Carpets . . .. .. . . .. . . .. . . .. 390 7 1 Linoleum .. .. .. .. .. .. .. .. .. 267 4 11 Mops, brushes, &c. .. .. .. .. .. .. .. .. 116 9 9 Records .. .. .. .. .. .. .. . . . . 6 12 2 Keys, &c. .. .. .. .. .. .. .. .. .. 7 7 9 Loss on assets .. .. ... .. .. .. .. .. 141 12 8 Suspense Account .. .. .. .. .. . . .. 1,347 8 8 £5,935 4 3 Maintenance £ s. d. Plumbing .. .. .. .. .. .. .. ~ . . 606 010 Electrical repairs .. .. .. .. .. ... .. .. 205 11 10 Window-cleaning .. .. .. .. .. .. . . .. 64 16 0 Paint, &c. .. .. .. .. .. .. ~ .. .. 1,094 12 4 Carpentry .. .. .. .. .. .. .. .. .. 1,361 10 6 Gardening .. .. .. ~ .. .. .. .. .. 508 5 4 Plastering .. .. .. .. .. .. .. .. .. 95 14 3 Tar-sealing .. .. .. .. .. .. .. .. .. 26 0 10 Suspense Account .. .. .. .. .. .. .. .. 1,890 19 9 Special allowance (section 16) .. .. .. .. .. .. .. 397 19 1 £6,251 10 9

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INVERCARGILL LICENSING TMJST—continued Details of Unauthorized Expenditure for Year ended 31st March, 1947 £ 8. d. Returned Servicemen's Association Poppy Day Appeal .. .. .. .. 5 5 0 W. M. C. Itenham's Presentation Fund .. .. .. .. .. .. 1000 Ex-gratia payment, widow of J. R. Lynch .. .. .. .. .. 36 16 8 Wreaths for deceased personnel .. .. .. .. .. .. 320 Refreshments, &e. .. .. .. .. .. .. .. .. 71 11 1 £126 14 9 Statement of Balances as at 31st March, 1947 Dr. £ s. d. Gr. £ s. d. Bank Account .. ..277,679 16 0 Bank of New Zealand .. ..272,002 3 0 £ s. d. Outstanding cheques .. .. 6,435 7 1 Frank Holloway £ s. d. Lighting Fund .. 107 4 8 Cash on hand .. 757 14 1 Post Office Savingsbank Account .. 107 4 8 £lO7 4 8 277,679 16 0 £864 18 9 278,437 10 1 i ■ . / : 107 4 8 ===== 864 18 9 £277,572 11 4 £277,572 11 4

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INVERCARGILL LICENSING TRUST- continued Balance-sheet as at 31st March, 1947

* Contingent liability for awards made under section 90 of the Public Works Act, 1928, in respect of the following premises taken under the above Act and account not vet determinable : Kelvin, 6/27/A192, Invercargill Town South, Part Section 22, Block X, 27-2 p., Gazette notice, 26th February, 1945. The Audit Office, having examined the balance-sheet and accompanying accounts required by law to be audited, hereby certifies them to be correct.— J. P. Rutherford, Controller and Auditor-General. Invercargill Licensing Trust: Eric. B. Barnett, Secretary-Manager.

Approximate Cost of Paper.-^ Preparation, not given ; printing (543 copies), £lB 10s.

By Authority: E. V. Paul, Government Printer, Wellington.—l 947, Price 6d.]

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Appleby Avenal Brown Owl Cecil Clyde Deschler Grand Head Kelvin Rugby Park Southland Totals. Hotel. Hotel. Restaurant. Hotel. Hotel. Hotel. Hotel. Office. Hotel. Bottle-storel Hotel. Liabilities £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Bank 278437 10 1 Less cash in hand .. 55"4 3 23 1.7 3 150 IS 9 21'i6 0 84'il 3 18"7 1 224 "7 1 122 k 3 14 i6 3 41 "6 11 757 14 1 277679 16 0 Frank Holloway Lighting Fund Sundry creditors 107 4 8 107 4 8 593 10 7 200 16 1 1636 9 10 207 10 0 986 3 7 474 0 0 2556 7 4 10945 6 2 1439 2 2 67 3 2 394 9 10 19500 18 9 Property Acquisition *1854 17 4 1854 17 4 Adjustment Account Depreciation reserves — Furniture 207 16 0 297 16 9 2680 5 8 307 16 10 462 10 10 779 3 1 2321 6 4 252 10 11 547 11 3 8 6 6 179 16 7 8045 0 9 Trucks 408 18 8 408 18 8 Buildings 177"5 5 154 "5 10 1543 "5 2 726"9 2 2114' 12 3 1409 14 4 7975 "9 0 1382 16 1 2170 'ie 8 81 "5 3 1070' io 2 18806 15 10 Plant 481 14 5 79 17 6 1439 11 9 2001 3 8 Taxation reserve 9057 6 11 Accumulated profit .. 19180 13 10 £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 356642 16 5 Assets £ s. d. Imprest advances 100 0 0 25 0 0 106 6 0 35 0 0 150 0 0 45 0 0 220 0 0 20 0 0 200 0 0 15 0 0 35 0 0 951 6 0 Post Office Savings-bank 107 4 8 107 4 8 Account Southland Brewery 5250 0 0 5250 0 0 shares Stocks on hand — Cellar 291 13 11 79 19 9 159 16 6 79 9 10 571 16 2 120 7 7 1434 3 2 13804 13 1 568 6 10 205 5 3 231 19 9 17547 11 10 Provisions 19 7 2 76 11 9 1717 9 3 113 12 11 12 14 3 361 11 2 508 19 9 6036 19 4 14 13 0 110 10 4 8972 8 11 Maintenance 1742 1 7 1742 1 7 Furniture and fittings 1153i3 8 1861 "l 9 11788 "9 2 1924 "3 9 2397 "5 2 4542 'l9 10 15929 "l 5 1640 19 11 2398 'is 0 249 'i5 0 3596 io 10 47482 13 6 Plant 1092 17 5 213 0 0 12815 12 10 14121 10 3 Trucks 1047 "7 2 1047 7 2 Land and buildings .. 3993"6 1 5086 "9 9 51005 il 10 29320 i.2 6 687 "7 0 12638 "7 5 95434 "7 9 13292 1 3 8125 'i5 1 3053 'l9 1 16573 'is 9 245401 16 6 Sundry debtors 82 5 6 97 16 5 585 10 8 123 2 9 123 6 9 145 9 6 658 4 7 905 3 0 177 12 0 47 15 0 70 14 10 3017 1 0 Goodwill 2415 0 0 900 0 0 7200 0 0 486 15 0 11001 15 0 356642 16 5