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1950 NEW ZEALAND
LICENSING CONTROL COMMISSION FIRST ANNUAL REPORT ON OPERATIONS UNDER THE LICENSING ACT, 1908, AND AMENDMENTS, FOR THE FINANCIAL YEAR ENDED 31st MARCH, 1950
To be Laid Before Both Houses of the General Assembly Pursuant to Section 25 (3) of the Licensing Amendment Act, 1948
MEMBERS OF THE COMMISSION A, M. Gotjlding, M.C., LL.B., S.M. (Chairman); B. Barrington, D.5.0., 0.8. E., E.D. (Member); L. C. Nisbet, F.P.A.N.Z. (Member).
Wellington, 30th June, 1950. Sir, — I have the honour to forward you herewith, in terms of section 25 (3) of the Licensing Amendment Act, 1948, the first annual report of the Licensing Control Commission, for the year ended 31st March, 1950 (covering the first ten months' proceedings and operations of the Commission). Yours faithfully, A. M. GtOulding, Chairman. The Hon. the Minister of Justice.
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CONTENTS
Page Section I—lntroductory .. .. .. .. .. .. .. 3 Section ll—Policy and Decisions — Publicans' Licences .. .. .. .. .. .. 7 Wholesale Licences .. .. .. .. .. .. 11 Conditional Licences .. .. .. .. .. .. 12 Tourist-house Licences .. .. .. .. .. .. 12 Club Charters .. .. .. .. .. .. 13 Health and Sanitation .. .. .. .. .. .. 15 Section lll—Licensgni Trusts and Local Licensing Trusts .. .. .. 16 Section IV—Licensing Committees .. .. .. .. .. .. 17 Section V —The King-country .. .. .. .. .. .. 17 Section VI —Financial Considerations .. .. .. .. .. 20 Section Vll—Power op Commission to Make Recommendations .. .. .. 21 Section VIII —Recommendations .. .. .. .. .. .. 22 Section IX—Administration and Staff .. .. .. .. .. 23
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REPORT
SECTION I—INTRODUCTORY 1. The Licensing Control Commission is constituted under the provisions of Part I of the Licensing Amendment Act, 1948, which came into force on the 3rd day of December, 1948. 2. The first members of the Commission were appointed in May, and took up their duties on Ist June, 1949. 3. The constitution and setting up of the Commission marks a new era with regard to the licensed trade and the licensing laws in New Zealand. 4. The functions, powers, and duties thrown upon the Commission are extensive and important, involving consideration of difficult problems and calling for far-reaching •decisions, not only of a judicial but also of an administrative and, at times an executive nature. 5. The Commission is directed and empowered by the Licensing Amendment Act, 1948, inter alia—(a) As soon as practicable after the passing of the Act to review throughout New Zealand the distribution of publicans', accommodation, and wholesale licences, and from time to time thereafter to continue such review, but at least every ten years completely to review the distribution. (b) To cancel redundant licences and to assess compensation for the owners and licensees of such licences as are cancelled or surrendered. (c) To determine the need for and to authorize the issue of new publicans', touristhouse, and wholesale licences in places or localities where the Commission finds they are required. ■(d) To determine the fair price to be paid in respect of new publicans', touristhouse, or wholesale licences by the applicants for such licences. <e) To control the Licensing Fund, into which are paid all moneys derived from fair prices paid for new licences, and out of which are paid all moneys awarded as compensation for cancelled or surrendered licences. (f) To prescribe standards to be complied with in the provision of accommodation, services, and other facilities for the public and for lodgers, guests, and employees in licensed premises. (g) To grant, renew, and (if cause arises) to cancel or revoke club charters, and to direct in what cases prosecutions for breaches of the licensing laws shall be taken against clubs. (h) Generally to supervise the activities of Licensing Committees in the performance of their functions. The Commission is empowered on occasions itself to exercise the functions of a Licensing Committee. (i) To approve the issue of new brewers' licences and the renewal of brewers' licences, and if occasion arises to cancel or suspend such licences. (The above functions were formerly vested in the Minister of Customs.) (j) To exercise certain powers and duties arising out of the enactment of the Licensing Trusts Act, 1949, and the passing of the Local Licensing Trusts Regulations (Serial number 1949/189). These regulations were enacted under section 121 of the Licensing Amendment Act, 1948, and came into force on the 21st December, 1949. (k) In some matters to act as an appellate tribunal from certain decisions of Licensing Committees.
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6. Keeping the above powers and functions in view, the Commission now gives a broad general account of its work from Ist June last year, covering a variety of subjects it has been called upon to deal with. Following that there will be fuller reports dealing with the Commission's policy and aims on various matters only dealt with generally here. Then will follow the Commission's observations with regard to suggested improvements of the existing licensing laws and recommendations. 7. There was neither practice nor precedent for much of the work which it has fallen to the Commission to undertake. Nor was there any opportunity in the short time between the appointment of members of the Commission and the commencement of their duties for preparation. In that time, however, arrangements were made to secure the services of a Secretary and a Secretary-Stenographer, who joined the Commission on Ist June, 1949. Reference will be made later in the report to the matter of staff and office premises. 8. The Commission felt the primary duty cast upon it was that of reviewing the existing licences throughout the country. It is anticipated that the initial review will occupy up to three years, but before this work could begin, time was required to enable Licensing Committees, Police Department, local bodies, Health Department, the licensed trade, the New Zealand Alliance, and any other interested parties or individuals to prepare evidence to place before the Commission regarding the need for redistribution, cancellation of licences, and authorization of new licences. Therefore while steps were being taken to meet this situation consideration was given to another matter of vital importance. This was the question of tourist-house licences, a new type of licence, limited to 25 for the whole of New Zealand and authorized under the amending legislation of 1948. 9. The Commission resolved to make its first public inquiry into this problem and to make the inquiry a general one covering the whole of New Zealand. It called the inquiry in Wellington for 12th July, 1949. The sittings, which were widely advertised throughout the country, lasted four days, and a great variety of interests and parties, (including the Government Tourist Department) came before the Commission from all parts of New Zealand. As a result of this inquiry the Commission was enabled on Ist August, 1949, to publish its first decision and to authorize the grant of 8 tourist-house licences. 10. In the meantime, preparations were in progress.for the holding of the Commission's first public inquiry as to the distribution of existing licences. The Commission had selected the Waikato, Thames, and Coromandel area as the most suitable one in which to commence its inquiries, and opened its sittings in Hamilton on 16th August, 1949, 11. The aim of the Commission in this and all its public inquiries is to obtain evidence from Licensing Committees, Police Department, Health Department, local bodies, and from all other interested parties and persons able to help the Commission on the problems which arise. These include not merely questions relating to the number of licerices, but also matters of shortage of accommodation, standards, services, accessibility of areas, trends of population, &c. Dates for hearing of all sittings are advertised at least a month before the sittings. There was at first a lack of appreciation by some local bodies of the important part they play in assisting the Commission, but there has been a constantly increasing understanding of the value of evidence from these sources. Speaking generally, the Commission has received useful and informative evidence, and in some cases comprehensive and valuable reports, from a variety of local and other bodies and parties who have come before it to tender evidence. 12. In all its inquiries the Commission has given full opportunity to representatives of the licensed trade and to owners and ilicensees of hotels, and to those interested in the wholesale trade, to come be'fore it and give evidence, so that the Commission may
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take a comprehensive view of the problems which confront it, and of the possible effect of decisions it must make. Again from this source the Commission has received much useful help. 13. A verbatim record of all proceedings is taken at the sittings. This is essential to enable the Commission to give proper consideration to the volume of evidence put before it. Besides this the data so obtained will prove valuable for record and research purposes. 14. The Commission's functions after it has decided to authorize new licences are, first, to fix the place or locality in which the licence or licences should be granted ; second, to settle the standard of accommodation and the amenities which should be provided in the premises, and third, to fix, in terms of the Act, the fair price which the successful applicant must pay for the licence. 15. The actual grant of any licence (other than a brewer's licence) is not the function of the Commission. Once it has authorized any licence for an area or locality, applicants for such licence lodge their applications with the Licensing Committee for the district and the Licensing Committee then follows the procedure laid down by the Licensing Act, 19Q8, the Licensing Amendment Act, 1948, and the Licensing Regulations 1949 for dpaling with applications. It is the Licensing Committee, not the Commission, which determines which applicant shall receive the licence. 16. Up to 31st March, 1950, the Commission has conducted public inquiries regarding the need for new licences as follows : 1949 16th August and following days .. .. • • Hamilton. 23rd August and following days .. .. • • Thames. 3rd October and following days .. .. • • Rotorua. 11th, 12th October and following days .. .. Tauranga. Bth November and following days .. .. New Plymouth. 14th, 15th November and following days .. .. Hawera. 1950 14th March .. .. .. • • • • Roxburgh. 15th March .. .. .. • - • • Alexandra. 17th March .. - - - - • • • • Cromwell. 21st March and following days .. .. • • Queenstown. 24th to 29th March .. .. • • • • Invercargill. 17. The above inquiries covered the following licensing districts : Hamilton. New Plymouth. Piako. Egmont. Waikato. Waitomo. Raglan. Patea (north of Waitotara). Hauraki. Central Otago (western area). Bay of Plenty. Wallace. Tauranga. Awarua. Waimarino (northern portion). In the course of those inquiries 251 publicans', accommodation, and wholesale licences came under review. A reference to Table A accompanying this report shows the result of the inquiries, giving particulars of licences reviewed, new licences authorized, and numbers of hotels ordered to be rebuilt or improved.
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18. As may be appreciated, the above sittings and inquiries involved a great amount of preparatory work on the part of the Commission and its staff. They also involved a great deal of travelling. In addition, the Commission has also travelled extensively throughout licensing districts where reviews have been held, in order to appreciate the nature of the evidence that has been placed before it regarding licensed premises, areas or localities where licences are said to be redundant, or where authorization for new licences is sought. 19. Following any decision of the Commission that licences may not be needed, a further sitting is necessary at which the interested parties are called on to show cause why particular licences should not be cancelled. This occurred in the Hauraki Licensing District, and a special sitting of the Commission was held at Thames on the 13th December and following days. 20. Another of the Commission's functions which has occupied much time is that of club charters. In this matter the Commission now exercises functions which were formerly vested in the Minister of Internal Affairs under Part IX of the Licensing Act, 1908. No new charter had been granted under that Act for over forty years, though various clubs had from time to time made applications to successive Ministers. 21. In no-licence districts, legislation still prevents the grant of club charters in such areas. It had also up to the passing of the 1948 Amendment Act prevented the grant of charters in the King-country. Under section 81 of that Act, however, power was given to the Minister of Internal Affairs to authorize the grant of temporary charters in the King-country pending the result of the poll to be taken among both European and Maori electors on the question of whether or not licences for the sale of liquor should be issued there. Many applications for temporary charters were submitted to the Minister of Internal Affairs under that provision, but none was granted. 22. The Commission had hardly taken up its duties when numerous inquiries reached it with a view to clubs making applications for charters. There were no regulationsthen in existence covering a variety of matters (including club charters), which required the enactment of such regulations. This matter was put in hand at once, and on the 10th August, 1949, the Licensing Regulations 1949 (Serial number 1949/113) were enacted. 23. Soon after the above'regulations came into force, applications from clubs for charters began to reach the Commission in considerable numbers. It became clear that the Commission must take steps to hear some of these applications with a view to setting out its policy and the principles which would guide it in determining such applications. It selected a group of applications representing a variety of different types of club. These were set down for hearing in Wellington, and with the consent of interested parties were heard there on 6th and 7th December, 1949. 24. The decision of the Commission on these applications was given on 23rd December. Meantime the urgency of the problem of club charters in the King-country was being stressed. Owing to pressure of other work the Commission was unable to fix any hearing for these applications before February of this year, when thirty-five applications same before the Commission at Te Kuiti, Taumarunui, and Raetihi. The decision on these has since been released. The matter of club charters will be referred to in more detail later in this report. 25. A special section of the report deals with the matter of licensing Trusts, but attention is drawn here to the fact that the desire for local Trusts to conduct publicans' licences, where the Commission has authorized new ones, has thrown a great deal of further and complicated work upon the Commission.
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SECTION lI—POLICY AND DECISIONS PUBLICANS' LICENCES (A) GENERAL 1. The Commission has at public sittings during its first ten months reviewed 238 publicans' and accommodation licences and considered applications for new publicans licences in twenty-one localities. Up to the 31st March, 1950, decisions have been given in respect of the review of 153 publicans' and accommodation licences and requests for new licences in seventeen localities. All persons and organizations who so desired have been given the opportunity to present evidence to the Commission. Valuable assistance has been received from Licensing Committees, local bodies, and the Police and Health Departments. 2. In considering applications for new publicans' licences the Commission is directed by subsection (2) of section 50 to have regard to : (a) " The convenience of the public and the requirements of the locality in which it is proposed that the licensed premises should be situated." (b) " The distance between the proposed situation of the licensed premises and the licensed premises nearest thereto." Subsection (3) of the said section 50 provides Subject to the considerations set out in subsection two of this section, the Commission may also have regard to the nature and standard of any accommodation and essential services provided by any licensed premises situated in the locality, the manner in which the business of those licensed premises has been conducted, and such other circumstances as it considers relevant. 3. To ensure that all parties concerned would be conversant with the Commission's policy in respect of this part of the Act, in its first decision it stated at length its interpretation of these sections, which is as follows : It is difficult to lay down precisely what meaning is to be given to the words " the convenience of the public " and " the requirements of the locality " in which licensed premises are to be placed. A licence carries with it not only the limited monopoly or privilege of selling intoxicating liquor, but also the duty to do so for the reasonable refreshment, or call it, if you will, the convenience of the public as a whole. It also carries with it the obligation to provide food and accommodation for the travelling public. The Commission interprets the word " convenience "as meaning comfort, " suitability "or " fitness." Crowded bars, inadequate accommodation, bad meals, poor furnishings, lack of cleanliness or sanitation, and a variety of other matters are pertinent to the question of convenience as far as hotel premises are concerned, so that if it is found that the licensed premises in an area or place fall short of meeting the reasonable and normal convenience of tne public generally in those respects, then grounds exist for saying that further licences are necessary or desirable in that area. The " requirements of the locality " where licensed premises are to be situated is the next matter the Commission is to have regard to. The Commission interprets the word " requirements "in the sense of needs or demands. Under this direction it appears that the Commission has a duty, apart from its duty towards the public generally, to pay particular attention to local needs. The question of density and variation of population, needs of travelling public, isolation or inaccessibility of an area, and the existence of few or many licences in a place are some of the matters which appear relevant in determining the requirements of the locality under this heading. Under section 50 (2) (6) the Commission is directed to have regard to the distance between the proposed situation of licensed premises and the licensed premises nearest thereto. The importance of this provision was stressed by counsel on behalf of all parties interested m the five licensed hotels in Hamilton It seems to the Commission that there is much force in the argument that underlying this provision is the intention of the Legislature that in authorizing new licences regard should be had to certain economic factors. It cannot be gainsaid that under normal conditions the effect of placing new licensed premises very close to existing ones must have an adverse effect on the trade of the latter. While reasonable competition between licensed premises may have good and beneficial effects for the public, such competition if carried too far may have disastrous results leading to deterioration in service, accommodation, and standards of comfort. Hence the requirement that the Commission is to have regard to distance between existing and newly authorized premises.
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Distance is, of course, a matter of degree dependent on a variety of circumstances. Ten miles apart in a scattered country district may be too short a distance between licensed bouses, while 10 chains apart in a crowded city or at a busy railway junction or terminus may not be. The above view is strengthened by the provisions of subsection (3) of section 50, under which the Commission is to have regard to the nature and standard of accommodation provided by existing premises, the conduct of such premises, and " such other circumstances as it considers relevant." When over many years there has been failure to remedy obvious defects in accommodation or services, excuses only serve to emphasize the fact that there has been failure to meet public requirements. What the Commission has to look to under section 50 (3) is the existing premises in the locality. Vague promises by owners or licensees that they intend in the future to make or can make further or better provision in the way of additional accommodation or services in their premises are not " relevant circumstances " to which any weight can be given. The position, however, is different if actual plans to improve or extend premises have been held up by war or unavoidable events. That is a very relevant matter under section 50 to which consideration must be given. Further, the Commission believes that the financial result of the grant of additional publicans' licences in any area or place, not only on existing licences but on the new licences themselves, may also become one of the relevant circumstances that cannot be overlooked. An uneconomic new licence is likely to lead to deterioration of standards and services and to breaches of the licensing laws rather than to an improvement thereof. 4. All the factors mentioned above have been taken into account by the Commission in its decisions regarding authorization of new publicans' licences. 5. In the review of existing publicans' licences the Commission is directed by section 35 of the Licensing Amendment Act, 1948, to take into account similar considerations to those set out in paragraph 2 above when deciding whether a publican's licence is not needed. The principles set out in paragraph 3 have also been applied to this phase of the Commission's work. 6. Although as at the 31st March, 1950, the Commission had not ordered the cancellation of any publicans' licences, it had indicated that in certain areas there was a definite surplus of licences, and to enable the Commission to finally decide which licences should be cancelled it had named some eighteen hotels, the owners and licensees of which would be called to show cause why their licences should not be cancelled. Hearings were completed in respect of fourteen of these licences. When notice of determination to cancel a licence is given, the Commission proposes as a general rule to allow a reasonable period of time to elapse before cancellation will take effect, to enable the owner and licensee opportunity in which to make other arrangements, and also to enable the remaining licensees in the locality time to make any necessary adjustments to cater adequately for the public requirements. 7. While carrying out its initial review of licences throughout New Zealand in accordance with section 30 (1) of the Licensing Amendment Act, 1948, the Commission has stressed at public sittings and in its decision that by section 13 (1) (d) and section 30 (2) of the Licensing Amendment Act, 1948, it is empowered also to review licences at any time when circumstances warrant. Where representations are made in respect of possible long-term developments, indicating that increase in population may justify new licences several years hence, the Commission has said that it will again review the position from time to time. In the same way it has also in certain localities stated that, while not immediately declaring any licences redundant, it may be necessary to review the position again at a future date, when, unless there is an increase in population, some reduction in the number of licences may be warranted in order to meet the needs of other localities. 8. The policy of the Commission will therefore be, whilst carrying out its general review and in between ten-yearly reviews, to watch the movement of population within New Zealand and the changing demands for accommodation. Where necessary, it will adjust licences to see that there is an equitable distribution.
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(B) STANDARDS 9. The Commission has paid close attention throughout its public sittings, and by research at every opportunity, to the question of standards of accommodation and services. It has studied reports of overseas developments, and has discussed this important question with overseas visitors who have a wide knowledge of hotel standards. The Commission fully appreciates that, owing to very different conditions pertaining in other countries both in the matter of demand by the travelling public and in licensing laws, certain amenities and services provided overseas cannot at present be adopted in New Zealand. It is, however, convinced that some of the improvements which have been effected overseas can be introduced into New Zealand. The Commission will, by all means possible, continue to study overseas trends in the matter of standards of accommodation and services. 10. From evidence which has been placed before it and by its own observations the Commission is of opinion that in a large proportion of the hotels throughout New Zealand there is an urgent need for the provision of more modern amenities. In a number of hotels already reviewed it has been found that, although built over fifty years ago, the buildings are still in their original state as regards design and facilities provided. The result is that there are to-day in a number of localities large unattractive buildings •costly to maintain and inconvenient for guests and staff. In consequence, the demand for accommodation in such places has fallen off and, with modern transport, prospective guests will travel further to other centres to obtain more comfortable accommodation. This accentuates the accommodation problem in the larger centres and throws a heavy burden on certain licensees. In some country areas very attractive small hotels have been erected on the main highways and there is a steady demand for the accommodation available there. The Commission believes that if these old and mainly two-storied isolated country hotels were remodelled to provide smaller hotels of attractive design with comfortable accommodation, the accommodation problem for the travelling public would be greatly eased. When the time is opportune the Commission will issue directions in an endeavour to achieve this result. 11. Despite present day building-costs, it is pleasing to note that over the past two or three years some new hotels have been erected. In other cases and without any direction from the Commission, plans have been approved and work is under way for the building of several new hotels in different places. They are attractive in design and they provide modern amenities combined with comfort. 12. The Commission has not overlooked the need for improving the standard of accommodation and services in bars. Further reference is made to this under the heading " Health and Sanitation." Evidence given at its public inquiries satisfies the Commission that in practically all urban hotels there is serious overcrowding in bars at rush hours. This problem is a difficult one. It is appreciated that the existing hours of sale authorized by law accentuate the difficulty. That, however, is a factor which must be accepted. Eventually additional bar accommodation in new premises authorized by the Commission will bring about some improvement. Much, more than that, however, is necessary. The enlargement and redesigning of many existing bars, which are far too small, will help greatly. The Commission realizes that such alterations will involve considerable structural work, including in some cases redesigning of the hotels themselves. In view of all this, combined with present restrictions, improvements can only be brought about by degrees. 13. The Commission has laid down standards of accommodation and services for all of the new publicans' licences it has authorized and in those cases where it has been directed that existing hotels are to be rebuilt. While the specific requirements of the Commission vary in accordance with the type and locality of hotel authorized, it has fixed minimum standards which apply to all new hotels. Until the Commission has
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completed its initial review of all publicans' licences in New Zealand, and in view of tlie known shortage of labour and building-materials, it does not propose to prescribe immediately minimum standards for all existing hotels in New Zealand. The Commission will, however, on completion of its review of licences, and subject to labour and material position then being satisfactory, lay down in accordance with section 15 of the Licensing Amendment Act, 1948, the minimum standards to be complied with by all hotels. 14. The minimum general standards prescribed for new hotels and which will eventually be prescribed for all hotels include the following (a) General Premises shall be equipped and so constructed as fco comply with the New Zealand Standard Code of By-laws—Part VII: Means of Egress (N.Z.S.S. 95, Part VII), By-law 733. (b) Bedrooms (i) All bedrooms, other than bedrooms with private bathrooms, shall be equipped with hand-basins and running hot and cold water. Where private bathrooms serve more than one bedroom, each bedroom shall be equipped with hand-basins and running hot and cold water. (ii) All bedrooms shall be equipped, inter alia, with adequate lighting, including reading-lights for beds. (iii) Ventilation of bedrooms and space per person shall be in accordance with the requirements of the Health and/or local-body authorities. All bedrooms shall provide an adequate amount of fresh air per medium of windows. (c) Bathrooms One bathroom and one . separate shower-box to be approved by Health and/or local-body authorities and by Licensing Committee for first eight guests, and thereafter one bathroom and/or shower in the proportion of one to every additional eight guests for whom there is accommodation in the premises and for whom private bathrooms are not available. (d) Lavatories There shall be separate lavatory accommodation for each sex and separate from bathrooms (except in any private bathroom). Such lavatories to be approved by Health and/or local-body authorities and Licensing Committee and to be at the rate of one closet for each sex for the first eight guests. Thereafter there shall be adequate lavatory accommodation, but not less than in proportion of one closet for each additional eight guests for whom private closets are not available. (e) Heating Central heating shall be provided throughout the premises if directed by the Licensing Committee. (f) Bars (i) Adequate and proper cleaning facilities for cleaning glasses with running hot water of a temperature of not less than 170 degrees Fahrenheit shall be installed in every bar in accordance with directions of Licensing Committee and Health Department. (ii) Bars shall be at all times kept clean and tidy, and the floor-covering shall be of impervious material and shall be thoroughly cleaned with hot water and soap at least once daily. 15. When reviewing licences in each licensing district the Commission has ordered, and will order in the future, immediate improvements in all cases where such are urgently required. This applies particularly to requirements affecting health and sanitation.
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(C) ACCOMMODATION 16. The Commission has found in certain localities that a serious shortage of suitable accommodation for the travelling public exists. While the issue of new licences will eventually ease the position, the Commission realizes that it will take a long time for new hotels to be erected. Consequently, if it is left entirely to new hotels to provide additional accommodation, the present unsatisfactory position will continue. 17. The Commission is satisfied that more accommodation could be provided in the immediate future if all licensees would make full use of their existing premises and provide attractive and comfortable conditions. This applies to many hotels in the larger centres where few structural alterations would be required, the main needs being redecorating, refurnishing, and the provision of friendly service. The Commission proposes to pay particular attention to this aspect in its review of city licences. 18. In several areas certain licensees have urged in evidence to the Commission that one reason for the continued existence of very old uncomfortable and poorly furnished hotels is that they are necessary to cater for particular classes of workers who cannot afford or do not desire better amenities. The Commission cannot agree with this view. While facilities within the means of particular patrons are necessary, there is no reason why modern amenities in comfortable surroundings cannot be provided in the lowestgrade hotels. Although it will cost a considerable amount to-day to bring these hotels up to a decent standard, this position would not have arisen had the owners and licensees carried out improvements from time to time instead of spending the minimum amount on maintenance only over a long period of years. It is the view of the Commission, and this is supported by evidence placed before it, that all sections of the community appreciate and will respect decent conditions both as regards accommodation and bar facilities. 19. The Commission has noticed a tendency in some large hotels for a large number of guest rooms to be used as staff quarters. While the Commission fully appreciates the need for suitable and comfortable staff quarters, this use of guest rooms is a factor largely contributing to serious shortage of accommodation for the travelling public. It would seem to be more economic to provide special quarters for staff than to use guest rooms for that purpose. WHOLESALE LICENCES 1. Section 28 (1) of the Licensing Amendment Act, 1948, states that the number of wholesale licences for the time being in force in New Zealand shall not exceed one for every complete ten thousand of the population of New Zealand. At Ist June, 1949, there were in force in New Zealand 141 wholesale licences, and in accordance with the provisions of section 28 (1) the maximum number then allowable was 187. 2. In its first decision regarding applications for new wholesale licences the Commission indicated that, while population was a major factor in determining the number of wholesale licences in particular localities, they could not be allocated with mathematical precision. Such questions as spread of population over an area, transport facilities, remoteness from existing wholesale licences, and requirements of existing and new publicans' licences are all matters which the Commission must take into account in endeavouring to secure an equitable distribution of wholesale licences. 3. In several instances evidence given in support of applications for new wholesale licences suggests that the main reason for the application is that insufficient spirits are available to meet the reasonable needs of the locality. This position has arisen in most cases through import licensing and non-availability of overseas supplies. There is little evidence of unfair distribution by existing established wholesale licensees. The Commission does not consider that the grant of additional wholesale licences purely on account of a temporary shortage of spirits in a particular locality is justified. It is reasonable to assume that in such localities the position will ultimately be remedied when greater supplies are made available to existing licensees.
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CONDITIONAL LICENCES 1. Conditional licences for race meetings, sports gatherings, agricultural shows, &c., are issued by Licensing Committees. (The Chairman and two members can grant such licence.) 2. The conditions existing for the service and sale of liquor under such licences have been engaging the attention of the Commission. For some months past the Commission has arranged for the Police Department to supply it with reports on all such licences. These have been coming to hand. It is hoped that such reports will assist the Commission when the regulations now being prepared by the Health Department come up for final consideration. TOURIST-HOUSE LICENCES 1. The tourist-house licence is a new form of licence, the authority for grant of which is found in section 66 of the Licensing Amendment Act, 1948, which Act also provides that the number of tourist-house licences for the time being in force in New Zealand shall not exceed 25. 2. This type of licence authorizes the licensee to sell and dispose of liquor on the premises described in the licence—(а) To any person who is for the time being a lodger living or staying in the licensed premises, or an employee of the licensee, for consumption on the premises ; or (б) To any person actually partaking of a meal in a room set apart and used as a dining-room, for consumption by that person as part of the meal. 3. The Commission has no power under the Act to authorize a tourist-house licence in any no-licence area. There is power, however, to grant such licences in the Proclaimed Area known as the King-country. 4. While this type of licence is new and of a limited or restricted nature, the Commission believes it will fulfil a valuable purpose in tourist localities. It is too soon yet for the Commission to say whether or not the number of licences (25) it has power to authorize under the existing law will prove sufficient for the needs of the country. 5. In order to distribute these licences as fairly as possible in the best interests of the country, the Commission has adopted certain guiding principles as the basis of its policy. 6. In considering whether or not a locality should be granted a licence or licences, the Commission takes into account whether the grant of any licence is likely to be in the national rather than in any local interest, in the sense that it will be of advantage to the country as a whole and will (particularly overseas) prove a valuable medium of attracting further tourist traffic. There are some localities in New Zealand which have a worldwide reputation and are attractive not only to overseas tourists, but also to travellers in New Zealand as a whole. 7. Another matter which concerns the Commission is the question of the existence or the non-existence in a locality or neighbourhood of licensed premises. If a suitable locality seeking a tourist-house licence is, by reason of distance, or sometimes of inaccessibility, isolated from any licensed hotel, that is a factor which the Commission believes has weight in favour of the authorization of a tourist-house licence. Associated with'this aspect is the question of population in an area. It cannot be overlooked that the limitations placed on the holder of a tourist-house licence under the Act are strict, and if there is a considerable permanent population or possibly a large influx of seasonal or holiday visitors the authorization of a single or even two or three tourist-house licences is not going to meet the requirements of either the seasonal or permanent population as a whole. Particularly is this so with regard to the supply of liquor. The better solution in such cases will lie in the grant of publicans' licences.
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8. The Commission has power to fix the standards of accommodation and services for tourist-house licences. In this connection the Commission will look for and fix high standards, varied according to what the Commission believes these requirements should be in any particular locality. In all cases, licensees will have to provide accommodation for a reasonable number of guests. 9. The standards laid down for the tourist-house licences already authorized include the minimum standards specified for all new hotels, but, in addition, provide for extended meal-hours and other amenities needed to meet the requirements of tourists visiting those localities. The fixation of the standards of accommodation and services, however, will not alone make for good tourist houses. The Commission believes that the success or failure of tourist-house licences depends in the long-run on the question of management, control, and service. 10. So far, 12 tourist-house licences have been authorized for the following localities : 1 .. .. Waitomo. 2 . . Tongariro National Park. 3.. .. Egmont National Park. 4 .. .. Waikaremoana. 5.. .. Turangi (Lake Taupo). 6.. .. Hanmer Springs. 7.. .. Weheka, South Westland (Fox Glacier). 8.. .. Milford Sound. 9, 10, 11 .. Rotorua (three licences). 12 .. Hamurana Springs (Lake Rotorua). 11. The Commission anticipates that several of the remaining licences will be allocated during the next twelve months. At its public sittings the Commission invites representations showing the need for tourist-house licences in the various localities and takes the opportunity of visiting all those localities in respect of which representations are made. 12. Rotorua ranks high as a tourist attraction in New Zealand and, in view of this, the Commission has authorized 3 tourist-house licences within the borough. The accommodation standards laid down for one of the licences are as high as those laid down for tourist-house licences generally, but there was evidence presented to the Commission that, at this national resort, there is a need for the grant of licences to premises that cater for the requirements of tourists and visitors on lower incomes than those who frequent the more expensive establishments. The Commission has taken this into consideration and has authorized 2 licences for premises whose standards, although comfortable and providing modern amenities, will not be so high as those fixed for the first one. CLUB CHARTERS 1. In 1881 appeared the first legislation in New Zealand dealing with the matter of club charters. 2. Under the provisions of the Licensing Act of that year, subsequently amended, various charters were granted by the Minister of Internal Affairs up to about the year 1908. Since then no charters have been granted, though repeated applications have been made by a variety of clubs to obtain them. 3. The procedure for the grant of charters is set out in Part IX of the Licensing Act, 1908, as amended by the Licensing Amendment Act, 1948. Under the principal Act, before it was amended, application had to be made to the Minister of Internal Affairs, and the conditions set out in Part IX, section 261, had to be complied with by every applicant for a charter. The powers formerly exercised by the Minister are now vested in the Licensing Control Commission.
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4. The Commission has jurisdiction to grant club charters in all licensing districts (and also in those areas under the control of licensing Trusts) and the proclaimed area of the King-country, but it has no power to grant charters in no-licence districts. 5. After the passing of the Licensing Regulations in August, 1949, applications began to be received by the Commission for the grant of club charters. As at 31st March, 1950, 106 applications had been filed. Forty-one had been heard, but decisions had not been released. One had been withdrawn, leaving sixty-four still to be dealt with. 6. In the Licensing Act, 1908, Part IX, section 259, as amended by section 79 (1) of the Licensing Amendment Act, 1948, "club" is defined as follows : •: Club " means a voluntary association of persons (whether incorporated or not) combined for promoting the common object of private social intercourse, convenience, and comfort, and providing its own liquors, and not for purposes of gain. 7. The conditions on which new charters may be granted or renewed are set out in section 261 of the Licensing Act, 1908, and in section 77 of Licensing Amendment Act, 1948, which provides—(l) In considering for the grant or renewal of any charter under this Part of this Act, the Commission shall have regard to the facilities then existing, in the locality in which the club is situated, for social amenities, recreation, or refreshment, and to the objects of the club. (2) No club charter shall be granted or renewed under this Part unless the Commission is satisfied that, in addition to the conditions specified in section two hundred and sixty-one of the principal Act, the following conditions exist, namely : (a) That the club provides reasonable facilities for the purposes for which it is established: (b) That the club is conducted in good faith as a club : (c) That the club's premises and the facilities provided therein are suitable for the purposes of the club : (d) That correct accounts and books are kept showing the financial affairs of the club and the particulars usually shown in books of account of a like nature. 8. Here again each application is to be judged on its merits, and, while the Commission is not prepared to lay down hard-and-fast rules from which it might be difficult to depart, its view on club charters generally may be set out as follows : (a) Clubs are not in any sense a new institution and they have a recognized place in the community. (b) Clubs and their members enjoy definite rights within the law. (c) The Commission feels that it must be satisfied in the first place that the club which applies for a charter brings itself not only within the definition of "club" set out in the Act, but also within the conception that underlies that definition. (d) The conception that appears to underlie the definition of "club" in the New Zealand Act, which is also the conception of such institutions in England, is that a club is part of the private social structure of the community. The common objects of its members must point in that direction. It is formed for social intercourse, comfort, convenience, and "social amenities." (e) The right to provide its own liquors is but one of the social amenities it enjoys. {/) The club should have some element of permanence, and the requirements of section 261 of the principal Act regarding the election of members show that membership of a club is selective. It is a private, not a public, institution to which anyone can belong merely by paying a subscription. Moreover, the existence of a club should not be dependent in any large measure on revenue from the sale of liquor. In the view of the Commission, the source of revenue from entrance fees, subscriptions, donations, and endowments is an important matter to be considered in determining whether or not a club charter is justified. (g) The provision of suitable and adequate premises for the purpose of the club is all-important. This may well provide a key to the true object of the club, and failure to have proper premises would certainly tend to lower the standards of chartered clubs.
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{h) The Commission is of the view that running a locker system in conjunction with a charter is highly undesirable, open to abuse, and impracticable. This applies to all chartered clubs. (i) The Commission feels that it is impossible to determine with any exactitude the maximum number of members which a club may have. (The Legislature has seen fit to provide that the club must have a minimum number of fifty members.) The ideal club may well be one in which there is a strict limit to the membership. The lesser the number, the greater the chance of preserving truly common objects and the atmosphere of true sociability that should exist. (j) The Commission is of the opinion that it is desirable that in all rules of chartered clubs there should be a rule expressly providing that members must be over twenty-one years of age. Clubs should also keep a proper visitors' book showing the name and address of each visitor and the name of the sponsor. 9. It is clear that the Legislature has provided over a long period of time that in ■certain respects all chartered clubs must comply with the licensing laws. In particular, chartered clubs are in the same position as licensed hotels with regard to the hours for the sale of liquor on club premises. 10. Associated with the question of sale-hours is the question of consumption of liquor on club premises or the right to sell liquor for consumption off the premises. Under section 76 (1) of the Licensing Amendment Act, 1948, it is now provided that the Commission, if it thinks fit, may restrict the sale of liquor to consumption on the premises only. Bach application will have to be considered on its merits. HEALTH AND SANITATION 1. The Commission has given a great deal of consideration to matters affecting health and sanitation, both as regards drinking facilities for the general public and provision of accommodation. In the standards laid down by the Commission for new hotels it is anticipated that a considerable improvement will be effected, but this problem is such an important one that the Commission is anxious to see that necessary improvements are carried out in all hotels at the earliest possible opportunity. 2. Discussions are at present taking place with the Health Department with a view to bringing down suitable regulations under the Health Act which should remedy a number of defects at present existing and so reduce to a very minimum any danger to public health. 3. The matters to which particular attention is being given are — (a) Glass-washing and satisfactory supplies of properly cleaned glasses in all bars, lounges, &c. In a number of hotels already reviewed by the Commission the arrangements for proper washing of glasses have been far from satisfactory. Associated with this problem is the undesirable practice of refilling glasses. In crowded bars it is almost impossible to ensure that a customer receives back his own glass. (b) Cleanliness of bars, particularly floors. (c) Ventilation and lighting of bars. (d) Siting and provision of sanitary conveniences for bars. (e) Hygienic conditions in kitchens, dining-rooms, and places where food is stored. {/) Minimum floor and air space per person in bedrooms. The Commission has noticed a growing tendency in some hotels for single bedrooms to be converted to twin bedrooms, thus reducing both the standard of comfort and the air space per person below a minimum which the Commission considers advisable in licensed hotels.
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SECTION lII—LICENSING TRUSTS AND LOCAL LICENSING TRUSTS LICENSING TRUSTS 1. There are four statutory licensing Trust areas in New Zealand—namely, the Invercargill Licensing Trust, the Masterton Licensing Trust, the Ashburton Licensing Trust, and the Geraldine Licensing Trust. 2. The above Trusts operate in and have jurisdiction over areas that for many years were no-licence districts. These carry substantial populations. 3. The Licensing Control Commission has no jurisdiction over these Trusts or the areas they control, except with regard to the grant of club charters. It has no voice asto the number or location of publicans' licences, or the type or the standard of premises where liquor may be sold ; nor the standards of accommodation or services to be provided in such premises for the travelling public ; nor the amount or nature of bar space provided for the public ; nor upon other matters which ordinarily come under the control of the Commission or Licensing Committees. Nor has the Commission any power to authorize wholesale licences in Trust areas. It is doubtful how far it would have jurisdiction to authorize a tourist-house licence in these areas. 4. Any substantial departure from standards of accommodation and servicesprescribed by the Commission for new or existing hotels outside the above areas, any failure to provide accommodation by establishing hotels for the sale of liquor only, any failure to provide good buildings and comfortable and hygienic conditions when hotels, outside the Trust area are called upon by the Commission to do so may lead to entirely different conditions existing in adjoining localities. The Commission believes thiswould not be in the interest of the country as a whole. The situation calls for consideration of the question as to whether these statutory licensing Trusts should continue to be excluded from the jurisdiction of the Commission. LOCAL LICENSING TRUSTS 5. Section 121 (2) of the Licensing Amendment Act, 1948, empowered the enactment of regulations under which local bodies could make application for new licences authorized by the Commission pursuant to the Act, to be conducted by a local Trust to be formed,, and prescribing the procedure to be followed by local bodies making such applications ; and also providing for the constitution of any such local Trust and defining its functions,, powers, and obligations. 6. These regulations, which were enacted in December, 1949, prescribed the procedure to be followed by local bodies in making such applications, and empowered the Commission to authorize polls of electors in areas to be defined by the Commission to determine whether electors supported the proposal for a local Trust. 7. In the course of its public inquiries into the need for new publicans' licences in a variety of places, representatives of local bodies and private citizens have advocated the conduct of such licences by local Trusts. 8. In most of the localities where the Commission has authorized new publicans' licences, local bodies have made application or have indicated they intend to make application for such licences to be granted to local Trusts yet to be formed. Several have also applied to the Commission to authorize the taking of polls of electors.
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9. It appears to the Commission that the delay likely to occur in connection witli the constitution and establishment of the Trust, and the raising of capital necessary t'o enable it to operate, may be such that the grant and operation of new publicans' licences in areas which urgently need them could be so prolonged that the policy of the 1948 Amendment Act regarding redistribution of licences might be seriously impeded. 10. Some of the legal problems arising under the legislation as it n'Ow stands have already been referred to the Department of Justice. The difficulties that have arisen and are likely to arise are such that, with a view to simplifying procedure consideration should be given to amending the Act and the regulations regarding local Trusts. SECTION IV—LICENSING COMMITTEES 1. The present system under which Licensing Committees come into existence ; their election, jurisdiction, and functions have long been a feature of licensing laws and administration in New Zealand. 2. From time to time there have been suggestions for alteration of the system. Some suggestions have been made to the Commission in that direction since it took up its duties. The Commission has, however, had insufficient time or opportunity t'O 'give the careful study and investigation to these suggestions which would be necessary before it could venture to express views, let alone make recommendations Upon this important matter. 3. It does, however, make this observation : that the lack of public interest in the election of members of Licensing Committees is so notorious as to suggest that the public is unaware of the important and responsible duties entrusted to the C^MMittees. 4. The powers of Licensing Committees Were considerably extended and strengthened by the Licensing Amendment Act, 1948. The Commission thinks they could be beneficially extended under the existing system by further amendments of the law. 5. There is a difference of opinion among Licensing Committees on the question as to whether or not Committees should be empowered by law where it is thought desirable to inspect premises. The Commission has in view the appointment to its own staff of a well-qualified officer whose duty it will be to ensure that the standards laid down by the Commission are complied with, and the assistance of such officer will then be available to help Licensing Committees wherever necessary. SECTION V—THE KING-COUNTRY 1. Arising out of the hearing of a variety of applications for club charters in the King-country, the Commission feels it should make certain observations upon the liquor problem in that area. That problem has certainly not been completely or even satisfactorily solved by reason of the provisions of the Licensing Amendment Act; 1948. 2. The Commission has carefully studied the report of the Royal Commission on Licensing and a great deal of the evidence given before it so far as it applies to the Maori people generally and the Maori and European people in the King-country (see Chapters 56 to 61 and paragraphs 1116 to 1240 of the report). A good deal of the legislation in the Licensing Amendment Act, 1948, follows recommendations in that report. Some of it does not. 3. The Commission draws attention to the following : section 122 of the 1948 Act removed certain restrictions which had existed for many years with regard to the sale and sfipply of liquor to Maoris. The removal of these restrictions enables Maori wofiieh to be supplied with liquor on licensed premises. It also enables the sale and supply of liquor to
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Maori men for consumption off the premises. The effect in the King-country is that Maori men are now enabled quite legally to bring liquor into that area and to have it delivered to their homes in bulk. 4. It would seem that the object of this legislation was in furtherance of the desire freely expressed on behalf of many Maoris that they should be placed upon complete equality with Europeans so far as the sale and supply of liquor from licensed premises is concerned. 5. Another piece of legislation which points in the direction of equality between Maori and European regarding liquor is section 2 of the Licensing Amendment Act, 1949. That section for the first time gave the Maori elector equal rights with the European to vote on the issues of Continuance, National Prohibition, and State Control at general elections. 6. Section 89 of the Licensing Amendment Act, 1948, made provision for the special poll of both European and Maori electors on the question as to whether or not licences for the sale of liquor should be issued in the King-country. At the same poll the further issue was to be placed before the electors to determine (in the event of the proposal in respect of licences being carried) whether or not such premises should be conducted by a local Trust or Trusts. 7. There is another aspect of this matter. For all practical purposes the Kingcountry lies within the two electorates and Licensing Districts of Waitomo and Waimarino. It appears to the Commission that it would be fairer and in accord with normal procedure that each licensing district should have a right to determine its own fate in this matter. 8. In Chapter 60, paragraph 1212, of the Royal Commission's report appears the following statement:— Chapter 60—The King-cotxntby 1212. As to the Mischief of the Lack of Adequate Accommodation.—We think this complaint is justified. We have no doubt that if licensed hotels were available in the area, accommodation for the travelling public would greatly improve. 9. The Commission believes, from what it learned and heard during its hearing of club-charter applications in the King-country, that the above is still a fair statement of the position concerning the lack of accommodation in that area. It has in no way been altered or improved by the provisions empowering the grant of club charters. 10. It is almost needless to stress the fact that, far from being a " dry " area, the sale and consumption of liquor in the King-country is very large.- On this aspect it is only necessary to refer to the report of the Royal Commission on Licensing. It was amply confirmed by what this Commission learned during its hearing of the club-charter applications. 11. The authorized sale of liquor in clubs, since granted charters, will in no way meet the needs of the public generally, because such sales are confined to sales to members for consumption on the premises of the club only. 12. The Commission is not prepared, in an attempt to solve the liquor problem in the King-country, to depart from its policy regarding amenities necessary for a club, and must also keep in mind the requirement of the Licensing Act as to the objects of a club qualified to apply for a charter. As set out earlier in this report section 259 of the Licensing Act, 1908, as amended by section 79 (1) of the Licensing Amendment Act, 1948, defines a club as being " a voluntary association of persons (whether incorporated or not), combined for promoting the common object of private social intercourse, convenience, and comfort, and providing its own liquors, and not for purposes of gain." The Commission considers it would stretch the provisions of the law too much if charters were granted to every small group of persons in the King-country who form themselves into a club purely for the purpose of being able to provide liquor for members. To do so would give the population of this Proclaimed Area, both European and Maori, greater facilities for the consumption of liquor than are available to the rest of the population in
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New Zealand living outside Proclaimed Areas. Nor does the Commission think that every individual in the King-country who wishes to have the right to procure liquor or entertain his friends wants to join a club for that purpose. Such Europeans and Maoris as are not members of clubs will have to procure liquor from other sources. Control of those supplies will continue to be, as it always has been, difficult and unsatisfactory. 13. Attention has already been drawn to the fact that to-day the Maori enjoys the same voting rights at the licensing poll as the European. Following the passing of the 1949 Amendment Act the Maori electors voted for the first time in November last. The results of the poll so far as the Maori electorates are concerned according to figures from the Chief Electoral Officer are —
14-. The Commission refrains from discussion of the " sacred pact " or " bargain " said to have been made between representatives of the Maori people and representatives of the Government then in office in 1885 at the Puniu River near Kihikihi in the Waikato. That matter was completely discussed by His Honour Mr. Justice Smith, Chairman of the Royal Commission on Licensing, in Appendix Cto that Commission's report. The final paragraph of that Appendix is as follows : 92. Finally, in my judgment, the weight of the evidence is heavily against the view that the Natives of to-day are prevented by " a sacred pact " or " a bargain " from deciding, in the circumstances of to-day, what ought to be done in their best interests about the sale of liquor in the King-country. The Royal Commission approved that report and accepted the conclusions of the Chairman (see paragraph. 1217 of the report). In its decision upon club charters in the Kingcountry this Commission followed that decision. 15. After full consideration of the evidence placed before it regarding club charters in the King-country, the Commission is of opinion that the present position there is far from satisfactory. 16. Since the investigation by the Royal Commission on Licensing into liquor problems in the King-country, conditions have materially changed there. The observations of that Commission in its report upon charters for the King-country led to the incorporation of many fresh clubs. This was furthered by the passing of the 1948 Amendment Act, giving the right to clubs to apply for charters. The amending legislation, to which attention has already been drawn, has made material alterations to the rights of Maoris with regard to liquor throughout New Zealand, including the Proclaimed Area. Those alterations confer on Maoris — (a) The right to vote at licensing polls at general elections. . (b) The right of Maori males to take liquor from licensed premises for consumption off the premises and to order it in bulk. This enables them to take it into the King-country or to have it sent from outside that area. 17. In view of the above changed conditions and the factors arising out of this Commission's inquiries into applications for club charters, it recommends that Parliament should re-examine the provisions of the Licensing Acts so far as they affect those portions of the Waimarino and Waitomo Licensing Districts which lie within the Proclaimed Area. The Commission feels that it has no power to go further than that recommendation.
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National National State Continuance. Prohibition. Control. Northern Maori 5,978 2,170 1,263 Eastern Maori 8,718 2,190 2,331 Western Maori 8,333 2,928 1,801 Southern Maori 813 215 184
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SECTION VI—FINANCIAL CONSIDERATIONS 1. Section 13 of the Licensing Amendment Act, 1948 provides, inter alia, that some of the general functions of the Commission shall be : (b) To prescribe standards to be complied with in the provision of accommodation, services, and other facilities for the public and for lodgers, guests, or employees in licensed premises. [Section 15 provides that minimum standards may be prescribed in respect of licensed houses generally, or in respect of specified licensed houses.] (e) To determine what publicans', accommodation, tourist-house, and wholesale licences are unnecessary, and the amount of compensation to be paid in respect of the cancellation thereof. (/) To determine the number of new publicans', tourist-house, and wholesale licences to be issued in each licensing district . . . (g) To determine the fair price to be paid in respect of new publicans', tourist-house, and wholesale licences. 2. Charged as it is with the duty and responsibility of carrying out these functions and realizing the paramount need in the circumstances for a thorough working knowledge of the trading results of hotels and of the economics of the licensed trade generally, the Commission has instructed its Investigating Accountant to make a wide survey of hotel revenues, operating-costs, rents, and net profits being obtained on the capital employed, together with a survey of the operations of licensed wholesalers. Though much ground has been covered in the limited time available since the Commission was constituted, much more research, especially in connection with hotels situated in the metropolitan areas, has yet to be carried out. Another factor is that costs are not static in any way and the position will always have to be subject to some sort of annual review. 3. Research of this nature occupies much time. Though the Commission has full powers under the Act to make any investigation it wishes, it expresses appreciation of the courtesy and co-operation of the licensed trade, which has enabled the Commission's staff to achieve so much in such a short period. 4. Arising from its inquiries and from evidence given at its various public sittings, the Commission is of the opinion that, subject to the trade potential and degree of competition in any particular area, the following four factors are the most important in the successful conduct of an hotel:— (a) The capability and personality of the licensee. (b) The availability, efficiency, and experience of the staff. (c) The site and efficiency in the layout and design of the licensed premises. (d) The correct financing of the enterprise. 5. The all-round abilities required of an hotelkeeper carrying out his full functions are of much higher standard than those possessed by the average untrained man. The process of training to become an efficient and successful hotelkeeper, in the widest sense of the term, is a lengthy and painstaking one, involving much attention to detail and the possession of a suitable personality for dealing with the public. In this industry, just as in any other industry employing labour, it is the prime duty of the management to train and supervise the staff, and the importance of the right type of licensee cannot be overestimated. <6. The Commission fully appreciates that generally it is more profitable for many reasons to dispense liquor than it is to cater for the accommodation needs of the travelling public. This aspect has unfortunately given rise to the popular misconception that the house operations can never be made to pay. The Commission does not agree with this sweeping viewpoint, as, given a measure of the four efficiency factors mentioned above, together with an adequate occupancy rate, the house operations co-ordinate with the bars to secure actual net profit, and were it not for the house contribution to the total gross profits, overhead expenses would in many cases exceed the gross profits of the bars.
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7. The allocation of general overhead, which frequently amounts to a considerable sum, can at best only be a matter of opinion and it is dangerous to draw conclusions based on any arbitrary apportionment of such overhead. 8. What has been clearly established is the disparity and lack of balance in earnings in proportion to the real capital and effort employed derived by a hotel providing good accommodation for a reasonable number of guests compared with a hotel enjoying a good bar trade but providing little in the way of accommodation. The Commission believes that this position will be partially remedied when it has prescribed minimum standards for all hotels and specific standards for particular hotels. (Vide Section 11, " (B) Standards," paragraph 13, supra.) 9. In assessing the over-all returns of an hotel, the Commission is of the viewpoint—(a) That rents paid should be added back to the profits, because in practice in this industry rents are based on the volume of business being done rather than on the normal landlord basis. (b) That excessive sums paid for goodwill should be disallowed. To permit of a return on such high goodwills in itself creates a spiral. 10. The Commission is aware of the increase in recent years of building-costs and, while it is prepared to concede that under keen competition there may be some reduction, believes that many of such increases must be accepted as a permanent factor affecting the construction of new buildings, replacements, and renovations. In view of the standards which the Commission is setting for accommodation, services, and furnishings, prospective purchasers of licensed premises would do well to take into account, before paying excessive sums for goodwills, the cost of any alterations and improvements which may be demanded. It is clear that when major construction or renovations are undertaken, unless there is a corresponding increase in revenue, the values of goodwills, which, after all, are based on net earnings, must fall as capital investment rises. 11. The problem of rising costs generally is not confined to this industry alone, and the Commission is firmly of the opinion that the solution is not to be found in any lowering of standards. Such standards as have already been laid down by the Commission for new hotels are the minimum which it believes users of hotels are entitled to expect. 12. In order to prevent trafficking in any new wholesale licences authorized, the Commission is of the opinion that if licensees of these, within three years of their commencing operations, desire for any reason to transfer them to some one else, such licences should be surrendered to the Commission, which will determine a fair compensation for them and, if the licences are still needed, will call for fresh applications. The Commission is not so concerned about new publicans or tourist-house licences, which are attached to the premises and not so easily transferable to other premises as are wholesale licences. SECTION VII —POWER OF COMMISSION TO MAKE RECOMMENDATIONS 1. The Commission draws attention to what it feels is a weakness in the provisions of section 13 of the Licensing Amendment Act, 1948. By paragraph (i) of subsection (1) of that section the Commission is empowered — To make recommendations to the Minister as to the expediency of amending the Licensing Acts. 2. The Commission recommends that there should be an amendment of section 13 by the addition of a paragraph to subsection (1) which will fully empower the Commission to conduct all such inquiries (publicly or otherwise in its discretion) as it deems necessary to enable it to make recommendations.
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3. "As the law stands at present it is doubtful how far the Commission could go in conducting inquiries or investigations which would give it the information and knowledge it should have before it goes the length of making recommendations to amend the Licensing Acts. 4. The Commission does not think it would be proper for it to make recommendations for amendments of the licensing laws which might well involve not only legal but also administrative and economic changes of a far-reaching nature without giving all parties interested the opportunity to be heard. 5. A variety of subjects which (if recommendations were made) would require amendment of the law fall into this category. Brief reference is made to the following by way of illustration (a) Sale of liquor by standard measures. The Royal Commission on Licensing reported in favour of sales by measure, and that it should be made illegal to sell except in duly marked glasses. Other bodies have urged that this should be done. If the law is to be altered in this direction, the question of the actual standards of measure to be laid down requires investigation. (b) Sale of liquor to be consumed with meals at approved restaurants under strict conditions as is done in New South Wales. This matter would require an important amendment of the law affecting a variety of interests. (c) Alteration of the hours of sale of liquor in clubs. This has been urged before the Commission by many clubs. The Commission has already indicated that it will not, without the fullest opportunity for expression of opinion by interested parties, be prepared to make recommendations on this subject. (d) Possible alterations to the law regarding Licensing Committees. This has already been referred to above. 6. Many other matters are likely to arise in respect of which the Commission may be called upon or invited to formulate recommendations. SECTION VIII- RECOMMENDATIONS The Commission recommends : 1. The amendment of section 13, subsection (1), of the 1948 Amendment Act by enacting a provision that will empower the Commission to conduct such inquiries (publicly or otherwise) as it deems fit to enable it to make recommendations under subsection (1) paragraph (c), of section 13. 2. An amendment of the provisions regarding new wholesale licences authorized by the Commission under the 1948 Amendment Act which will prevent possible trafficking in such licences. The Commission suggests this could be done by making any such licence non-transferable for a period of three years after it is granted. If the holder wished to surrender the licence during that time he must surrender it to the Commission, which would then determine what compensation he should be paid. Any licence surrendered could then be made the subject of a fresh authorization for a new licence in the same or any other locality determined by the Commission. 3. That section 58 of the Licensing Amendment Act, 1948, be amended by empowering Licensing Committees to compel compliance with requisitions made by them under that section by calling on any licensee who does not comply within a reasonable time limit imposed by the Committee to show cause why his licence should not be suspended until he does, the power to be exercisable at any quarterly meeting of the Committee. Note. —As the matter stands at present no Licensing Committee has any such power. AH it can do is to withhold the annual renewal of a licence at the annual meeting of the Committee. Once a licence is renewed the Committee is powerless to enforce compliance with its requisitions, however urgent the repairs or requisitions may be.
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4. That Licensing Committees be empowered, if they see fit, on application for renewal of an accommodation licence, to require the applicant to take out a publican's licence. Note. —Section 26 of the Licensing Amendment Act, 1948, directs that no new accommodation licence shall be granted. But an accommodation licence can be renewed, and an accommodation licence can be issued in substitution for an existing one. Section 107 of the principal Act makes provision for renewal of accommodation licences. On the application for renewal — (а) The licensee can ask the Committee to issue him a publican's licence. (б) The Committee can require the licensee to enlarge his premises and take out a publican's licence. There are likely to be cases where it is desirable that premises held under an accommodation licence be remodelled and made smaller rather than larger. In those or any other circumstances the Committee should be able to insist on a publican's licence being taken out in substitution for the accommodation licence. 5. That consideration be given to the question as to whether the licensing Trusts in Invercargill, Masterton, Ashburton, and Geraldine should continue to be excluded from the jurisdiction of the Commission. 6. That Parliament re-examine the provisions of the Licensing Acts so far as they affect those portions of the Waimarino and Waitomo Licensing Districts which lie within the Proclaimed Area. SECTION IX —ADMINSTRATION AND STAFF The Commission completed its first ten months of work on 31st March, 1950. Throughout that time it has received not only valuable assistance but encouragement from Licensing Committees, Justice, Police, Health, Tourist, Customs, Fire Service Division of Internal Affairs, and Town-planning Departments. The co-operation and assistance given by many members of the licensed trade has been very valuable, particularly in helping the Commission to obtain a background to the economics of the industry. It has also found most local bodies anxious to do all they can to assist in the problems the Commission has to solve. As at 31st March, 1950, the following staff was in the employ of the Commission : Secretary, Assistant Secretary, Investigating Accountant, General Clerk, Secretary - Stenographer, and Junior Typist. The Commission wishes to place on record its appreciation of the excellent work of all members of its staff. Their tasks have been carried out under more than ordinary difficulties, that of office accommodation not being the least of these. During the period under review the Commission has been forced to occupy different premises on three occasions, and the alterations to its present premises are not yet complete. It is only by the outstanding work of its executive officers that it has been possible for the Commission to complete such a large volume of work during the first ten months of its operations.
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Table A—Review of Licences and Applications for New Licences
Table B—Licences in Force and Licences Available for Authorization at 31st March, 1950
Notes.—(a) Licensed premises in the Trust areas of Invercargill and Masterton are not included in these figures, as such areas are outside the jurisdiction of the Commission. (b) The number of publican's licences available for authorization at Ist April, 1950, will be increased when the Commission has issued final notice of cancellation in respect of hearings to determine which licences should be cancelled in certain areas held prior to 31st March, 1950.
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Licensing District. Licences Reviewed. N umber of Localities in . Which New Licences Sought. New Licences Authorized. Rebuilding Ordered. 1 I I Improvements Ordered. 1 1 Publican's and 1 Accommodation. o Xt ' E? "3 o H Publican's. Tourist. Wholesale. Publican's. 1 1 Tourist. | Wholesale. Total. Hamilton Piako Waikato Raglan Hauraki Bay of Plenty Tauranga Part Waimarino (North) .. Waitomo New Plymouth Egmont Patea (North) Central Otago (West) Wallace Awarua Wellington sitting 5 6 12 7 32 14 13 5 6 8 23 18 34 48 ' 7 238 1 1 *2 2 3 i 3 5 6 12 7 32 15 14 5 6 10 25 21 34 49 10 1 2 2 3 5 2 1 1 1 2 1 1 3 if) 1 7 1 1 1 1 1 1 1 * -rH • • p • 3 1 2 1 i dsion larch, 4 3 1 1 1 i not g 1950. 7 3 0 2 8 4 2 1 2 1 iven f 4 i 3 *2 3 7 4 irior ti i 1 4 ' 7 2 1 12 10 o 31st 13 251 21 21 16 17 12 7 36 20 38
— Publicans' and Accommodation i Licences. Tourist-house Licences. Wholesale. Licences. 1. Number of licences allowable under sections 1,118 25 i 191 27 (1), 28 (1), and (2), Licensing Amendment Act, 1948 2. Number of licences in force at 1st June, 1,098 141 1949 50 3. Number of licences available for authoriza20 25 tion at 1st June, 1949 4. Number of licences authorized during 17 12 7 , period 1st June, 1949, to 31st March, 1950 43 5. Number of licences available for authoriza3 13 tion at 1st April, 1950
IT—3
LICENSING CONTROL COMMISSION Accounts of the Licensing Fund for the Period Ended 31st March, 1950 Receipts and Payments Account for the Ten Months Ended 31st March, 1950 £ £ Fair price for tourist-house licence .. 2,400 Expenditure .. .. .. Nil Balance .. .. .. .. 2,400 £2,400 £2,400 Balance .. .. .. •. £2,400 Balance-sheet as at 31st Marph, 1950 £ | £ Accumulated Fund .. .. .. 2,400 | Cash at Reserve Bank of New Zealand .. 2,400 The above is the proper statement of accounts as required by subsection (2) of section 25 of the Licensing Amendment Act, 1948. As at the 31st March, 1950, only one transaction affecting these accounts has been completed. A. M. Gotjlding, Chairman. Wellington, 30th June, 1950. I hereby certify that the Receipts and Payments Account 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.
Approximate Cost of Paper.— Preparation, not given printing (869 copies), £6O
By Authority: B, E, Owen, Government Printer, Wellington—l9so,
Price 9d.~\
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Bibliographic details
LICENSING CONTROL COMMISSION FIRST ANNUAL REPORT ON OPERATIONS UNDER THE LICENSING ACT, 1908, AND AMENDMENTS, FOR THE FINANCIAL YEAR ENDED 31st MARCH, 1950, Appendix to the Journals of the House of Representatives, 1950 Session I, H-03
Word Count
13,291LICENSING CONTROL COMMISSION FIRST ANNUAL REPORT ON OPERATIONS UNDER THE LICENSING ACT, 1908, AND AMENDMENTS, FOR THE FINANCIAL YEAR ENDED 31st MARCH, 1950 Appendix to the Journals of the House of Representatives, 1950 Session I, H-03
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