NEW ZEALAND'S DRINK BILL

Dominion, Volume 11, Issue 250, 10 July 1918, Page 7

NEW ZEALAND'S DRINK BILL

1) ESTIMATED EXPENDITURE IN 1917 (By Mr. A. Ji. Adams, Barrister, 3>unedin.) For the year 191" flic estimated direct <cx|K;ji(lituro (in drink in New.Zealand, calculated on the pre-war basis of valuation, \vi).s .tyr 1,572, but prices charged 'to the consumer have been considerably increased, on the plea that' this was liecc&airy to cover the increase cost, ireight mid duty. Imported spirits (except ease spirits) nro"broken down" bolero .sale by 'the addition of alwul 25 per cent.. of water. This is a recognised and legitimate practice, but; the bulk is ihus increased by I'o per cent, without any added cost, and the diluted spirit is sold at tho current prices. Probably three-fourths of the spirits are imported in bulk. The rewilt of this breaking-down process is that while tho Customs returns show 750,118 gallons of spirits consumed during tile year 1017, tho .actual quantity paid ior by the consumer is upwards of 9011,'100 gallons. Tho water added has not been taken into account in pro.'ions estimates. .Dining the year many of 'tho retailers increased tho pricc of spirits over the I>nri'romGd. per glass (18s. per gallon) to !'d. per glass (725. per gallon). This increase was at different periods in difl'erent parts of the Dominion, and was for ;part of the year only. It would be safe •to assume I hat the average cost of all spirits to the consumer throughout tho year was not less than -ISs. per gallon (including Ihe water added), and on Ihat of imported beer was at least 10s. per pallon. On 'tliis basis tho direct cost of alcoholic liquors to the consumer for tho year is estimated at ,£1,757,(183. Tho direct and indirect cost was probablv •well over ,£10.000,000. It. appears from the returns furnished l).v tho Comptroller of Customs that, while the fair value of tho spirits, dutypaid, was a fraction over 3Gs. per gallon in 10IG. (his value in 1917 was a fraction less Hum tits. 3d. Tho price has therefore been raised Ijy 50 per cent., whilo the value duty paid was reduced by over If) per eent. The reduction in cost is doubtless due to the importation of spirits of an inferior finality, but the cost to the consumer has been raised on the ground of an alleged increase in the cost. When (he usual 25 per cent, of water lias been added lo the imported spirit tho cost is reduced to 255. At Gd. per glass this would yield a gross profit of 235. per gallon, or 92 per cent. At •Id. per glass the gross profit is 7s. per gallon, or ISS per cent. Expenditure, Estimated on Basis of Values Adopted Before the War, Spirits, 750,lJ8gals. at -ICs. (decrease 20,550ga15.) 1,518,236 "Water added, say, 1-12,500g;i13. at. '10s ' ..: 285,000 Mines, )-t2,Ss!)gals. at'4os. (increase 255,71,') .Dior, imported Jj/l,G3Dj:als. at Cs. (decrease l-tf.GSOgals.) 21,180 Beer, N.Z. 11,3.'15,845ga15. at is. ' (increase SS,l2ogals.) 2,287,16? Total 'M,380,312 -Estimated .Expenditure, Taking into Account Increaso in Price. £~ Spirits, 75!),HSgals. at 4Ss. (decrease 20.5K0ga15.) 1,821,551) "Water added, sav. 142,500ga15. at 18s .' 3-12,000 "Wines, 1'12,559«m15, at '10s. (increase -HOlgals.) ...... 255,718 Bier, imported Sfl.GßOgnls. at 10s. (decrease IIS.GDOgaIs.) 40,315 Beer. N.Z. 1].3'!5,815ga15. at 4s. (increase SS,l2ogals.) 2,207,109 . Total jW,757.085 ■Estimated lolal for 1016 4.750,000 Increase ,£7,055 Estimated European population at "Deeeiiiber 31, 1917 1,007.015 Maori population 49,770 , Total 7,147,301 : . , .-. •£ s. <!. E.-ljmaled expenditure per head 4 2 S l , Estimated.-expenditure per head in 1917 4 2 11 E.vnendifiire per household of five persons 20 I t 7 Consumption per head of Population. • 19115. 1017. Dee. Inc. Gals. Gals. Gals. Gals. •Spirits ft.OS .GO .02 — Imported wines 0.12 .124 — .004 Imnorled beer 0.19 .07 .12 — N.Z. beer 9.8 9.9 - .1 -Added water not taken into account. Tho direct expenditure of liquor for the war years 1914-17 lias been 417,GOO,000; If wo add tho liquor bill for the currant year tho. total will equal (ho value of tho whole rf the lands, buildings, and machinery employed in tho manufactories and other works in tho Dominion as' stated in (he New Zealand Year Book for 1917.