H. —24

at the appointed hour, no after-hour drinking being possible, as premises are locked up and no one resides on the premises. In the Grand Hotel, the only residential hotel in which we have installed a house bar, affairs are conducted on the usual lines, with the exception that no drink is permitted in bedrooms. On the introduction of drinking after thirty-eight years of prohibition, it was to be expected that there would be an increase in the amount of drink consumed in the district, but the numbers of prosecutions have, we think, been less than under prohibition. The Police Department will, we hope, give the actual figures. Finance Complying with the interpretation of the Invercargill Licensing Act, the Trust borrowed the first £50,000 from the Treasury and are financing the balance through the Bank of New Zealand on current account. A first mortgage and debenture over the Trust's undertakings has been given to the bank and a second mortgage to the Treasury Department. Interest at bank rate is being paid to the Treasury with a table repayment liquidating the £50,000 by March, 1954. The total turnover for the nine months ended 31st March, 1945, was £141,568 lis. 5d., leaving a net balance in Profit and Loss Account of £23,485 14s. 7d. Income-tax, social security tax, and land-tax are to be paid from this amount. Prospects The members of the Trust are well satisfied with the progress made under the limited circumstances, but are of the opinion that it would be unwise to judge the experiment too critically at this stage. Even with conditions restored to normal, it will be four to five years before a comprehensive judgment would be possible. For Invercargill Licensing Trust: Hugh Ritchie, Chairman.

2