STATE CONTROL

Dominion, Volume 12, Issue 9, 5 October 1918, Page 2

STATE CONTROL

OF THE LIQUOR TRADE

ADDRESS TO BUSINESS MEN

EXAMPLES OF BRITAIN CITED

. Tlie Clmmbur of Commerce meetingroom was filled with' business men yesterday, when Mr. D. AI. .Ifindlay delivered nn address on "State Ownorship of. the Liquor Trade." Mr. J. 1). Jl'Jiwan. wlio presided, roniarkcd, in iiitrodticina tlio Kjieaker, that. i,ho question was iiiic of i.ational importance. Mr. Findlny said that .Uic honour had fallen on him, as president of tbo Jlmiprato Li'nguo of Kp\v Zoalaiul, to address tho gathering on llio question nf State (iwnei'shin of tbo liquor trade. Ono of tbo reasons'why lm lin'd, I.enn asked to nddivss tho business men vns tliat.tho'question wns at present <xercising thn public mind in no small negree.. l He considered that it v-;is exercising the public mind in an i:ndiic degfeo, and that jiisfc now there were more important matters than whntlicr 'Prohibition was necessary or State control, desirable. In l'Jlo i'lui moderate League iirjjed upon tlio Prinio Minister the necessity f-or a thorough inquiry by Royal Commission into the liquor question, including the idea of Stato control. Tho Prinio Minister replied: "My own personal opinion is that while a. Commission would pick up a lot of very valuable information, and I have no doubt its report would be exceedingly valuable, I do not think the time is opportune for the purpose. The .whole of tho.attention of the people of this country is given to tho war, and to do anything in tin's way at present .would be, in- my opinion, to strike a discordant note." The Moderate League accepted that answer as final, and loyally avoided except in defence of tho moderate man's liberties, further aeti"ities. The .league was surprised when the Efficiency Board decided to iiKJuiro into the wholo question. The terms of tlio inquiry were -such that the league would have nothing to do with it. The league tool; up thai attitude., beenuse it considered that tho Efficiency Board had prejudiced file question—that with men, however sincere, who had committed themselves to prohibition, the result was a foregone conclusion. Now we were again faced by prohibition activities in tile guise of the Efficiency League, an witness-the petitions which bombarded one, at every street corner, and moderate men were face to face.with questions whether they' would, allow-.prohibitionist propaganda a walk-over or wheiliei- they would come out and make a stand against what they conceived to be an unnecessary and undesirable invasion of private nnd personal liberties. It was in..tho hope of stimulating public action' by business men he appeared beforo them that day.

Abuses of the Present System. "I want to say (continued Mr. Findlay) that 1 do'not concede that tho prohibitionists liavo any monopoly of a desire for reform. Soine prohibitionists are,, it is well known, not altogether disinterested in the accomplishment, but in. r^pect. of. such of tho party as are nut, interested they will perhape concede honest conviction io <» large section of the community in tavour of reform as opposed to prohibition. Don't, let us forget that in VM there was 10,325 of a majority in National. Continuance and against Prohibition. ■ Aro we to' believe that that .-majority'has vanished?- I. claim that tho Prohibitionist Party has no" monopoly of desire for reform. The Moderate League ,, has ahvavs set its face' against tho"abuses of the' trade.. As Lord d'Abernon has said: 'Tim requirement of the future both from the point of _ view of temperance and imance, is the reorganisation , of the trade on less wasteful and economic hues, giving more efficient service and less dangerous temptations. The chief enemy, alike of temperance' and trade investors, was tlio cut-throat competition, which bid excessive prices for tlio right to sell liquor of gratuitously injurious strength at barely remunerative prices, and retained thousands of redundant licensos because it could not agreo to tho retail trade on reasonable linos. .

"I should mention also that the majority of 10,325 cast for continuance- in 1914 included the soldiors 1 vote. I don't believe that under present conditions you can get the soldiers' vote." lJiero had been a lamentable exhibition of this in Canadian voting, and since theiv. military authorities had raised grave objections to the taking of soldiers' vote's. "If we even, had to wait till the men camo back from the front it was the least we eoiild do as we bad already waited four years. We should wait and get their opinion on a. question so important to them. Tho Moderate League had set its face against abuses in the past. It was opposed to tied houses, excessive :;obdwills, insecurity of tenures, and" Lad liquor. "Wo. are as much against these abuses," Mr. Ifindlny said, "as any other section of the community, and I am just as irreconcilable an opponent of the Trade- as at present ct nducied as any Prohibitionist. 1 am opposed to Prohibtion because I consider it (in the words of the late Professor Salmond) 'an outrage against the privato and personal Hborties of men , ; because Ido not believe Prohibition will prohibit; because I do not believe tho morals and tastes of the people can be changed at a stroke by the action of legislation; because it is the thin .edge of tho wedro of the principle which will invade our private and personal liberties in a. score of <>tlier ways if we allow it to dominate us. 'flu , . Prohibitionist activities will nit cease with tho accomplishment of (he prohibition of liquor; thpy will pass en, if tlinv ever succeed, to invade our liberties in regard to tobacco possibly, and many forms of recreation. Aim finally I am opposed to Prohibition because I believe that all that is necesßury in regard to liquor control and temper'-: anci) may bi; accomplished by other means. Those other means nra State ownership of the'importation, manufacture, and sale, wholesale and rotail, of alcoholic liquor. •

Converts to State control. "For a considerable number of years moil of undoubted light and leading in tlii; world, of undoubted high moral principles 'and undoubted -impartiality, have looked to State ownership as a panacea of the "'evils of this trade. Anion;; them are Sir. Joseph Chainborlain, who introduced into the British Parliament a motion in fnvourof luuiiicipalisation, which motion was opposed by tho Trade end by Prohibitionists. Now Sir Frederick Whittnker, viccpresiuimt of the United Kingdom Alliance, says that he has come to ihink that this a good thing. . Mr. Lloyd George, who lvas.n Proliibil.ioni.sfc i<.t very long ago, stated in 1917: 'Stale purchase is the key to temperance ruforin.' Air. Holman says tliey propose to bring in a measure of State control in New South AViiles. There arc also the Right -Uev. Bishop AVeldon, Bishop of Manchester, mid many others. It is no new-fangled idea, therefore, but one that lias been long germinating in tho minds of reformers for many years. .- "It has-in the past been retarded: (1) J3.y opposition of tho Trade; (2) by opposition i)f tho Prohibitionists; (3) by doubts as to tho advisability of further extension of Stale operation. Now, though the Trade in the Old Country is still opposed to State- ownership, we (ire in New Zealand in the happy positi(iii of hiving this element of opposition removed. For the Trade, tired no 4/nibfc of the long and arduous fight for

exiblenco, is prepared to promote moans giving to tin , , moderate element in cho commuuity tho opportunity of expressing its views by way of referendum in favour of Stale ownership. Wo have seen, too, that some at least of llie older Prohibitionists, . like-Mr. Lloyd Georgo and Sir Frederick. liyhittakor, iiro comiitg round to Stato ownership us the key to reform. In regard to tho third point, we liavo had our ideas on tho extension of the orbit.of State action very much enlarged by the huge operations necessitated ly tho war and the manner in which millions have been raised has shorn the financial bogey of its terrors.. fll any business men with whom I have .discussed this proposal have raised the question of the danger of State ownership' as an engine of political influence or graft, but the provision to plnco the whole control under independent boards will'remove this objection at a stroke. I-person-ally do not sr>o that there is any great danger from this source. It is notorious that ninny of the State employees ;tro not political supporters of tho Government for tho time being, often quite the reverse, and, after all, tbero is not such an enormous extension of State action involved as may 'bo thought. There are in New Zealand forty breweries, about half the number in the larger centres and half outside. Them are 1199 „ public'liouscs, but it must be remembered that under Stato monopoly these, would be very largely reduced, as in the ease of tho Carlisle experiment of tiie British Control ]toard. l.am of opinion that probably one-half could, under State ownership, be dispensed with. The Department thus brought under State control would be small, as compared with the P and T. and Eailway Departments. I consider, with a properly safeguarded scheme, the element of danger in this aspect pif the question would be quite negligible. . ■

What, Britain Has Done. "By far the most important argument ili favour of State ownership lies in the practical object-lesson which has boeu alfordod by, the system of State control and ownership initiated by the British Government since the war in England and Scotland. Under, the Delencc of the Kealm Liquor .Regulations of 1915' forty-two areas in Great Britain, containing a population of thirty-oight million, had, to March, 1917, passed under tho control of the Central, Board. Tho general effect of these measures has been, according to •Lord d'Abernon (-"Alcohol and National Finaneo"), "That, since the outbreak of war public drunkenness in Great Britain has been reduced by approximately 75 per cent." He goes on to say: ("Thousands of lives have been saved through drink restrictions, and national efficiency enhanced. There is no indication of relapse from tho level attained.- On the contrary) further progress appears probable by further reverberations o'f existing causes. It may, therefore,- fairly be claimed that, on the temperance issue, which carries with it to s. large degree tho efficiency issue, tho problem which has so far baffled statesmanship is in process of satisfactory solution. . He jwints out elsewhere that the improvement is not due to a Jimitatioii of the amount of liquor available 'for public consumption, and by charts shows that not only did this limitation not affect consumption favourably, but had.the effect of ■ arresting tilie improvement previously manifested. : ' '--. . • ■

"In-the Carlisle area there has been a notable experiment in Siate ownership: An area containing 201 licenses was affected, and tho Board has gone on acquiring and reducing licenses in this area, beginning in the autumn of 1916.. and gradually acquiring all tho houses comprised.in.the Urotua scheme. In addition to this, they acquired the manufacturing and wholesale wine and spirit businesses of. linns carrying on trade , in/ami, around. Carlisle., Great economies of administration are reported. The report further states that tho Mayor and chief constable havo homo witness to the reality of -the improvement, and the reduction of drunkenness which is indicated by the statistics of convictions is. reflected in tho improved app'earanco in the streets of tho city, and i in tho general order and sobriety of the large crowds by which they, arc thronged.. -The., effect of these State operations lias been to roriiovo absolutely and for ever all questions of "the efFect of State- ownership to bring about a completely satis 1 factory solution of the liquor question*

! LowlVator Mark of Drunkenness. "In regard to the effect of Stato control elsewhere the Commissioner of Police.' of- the Metropolis, iu reporting on the position,'-states : — 'l liclicvo thai no measure, not oven of total Prohibition, would be'likely to bring about any further appreciable, reduction in the number of charges, of'drunkenness.' It is .notable, too, that on the financial, sido the exporiment has proved a sucleess. Tho matter is well summed up in the concluding paragraph of the Central Control Board's report:—'A general survey.of the jwsition at the ond of the throe years which have elapsed since the establishment of the Central Control Board shows that steady and continuous progresf is still being made, though necessarily at a slower rate than in early days.' The ground gained, including as it does a reduction of public drunkenness to up- , proximatelj; one-quarter of its previous Amount has been so considerable that the margin of possible improvement is relatively small; but if progress is now loss rapid than it was two or three years ago thcro aro no signs of reduction, nor .has any ground been lost. Whether the improvement achieved will 'bo permanent or temporary depends upon unknown factors; principally upon future legislation and ftdniiiiistration, But tho experience of the last three years goes to show that there is no such inherent difficulty in tho problem as to render impossible tho permanent . maintenance of the present level of sobriety.'

"Tho whole question lias pnssed !;e----yond iho'region pf controversy and details of acquisition have been inquired into by various hoards of England, Scotland, and Ireland. These largely confined themselves to .ways and means and 'methods of ascertaining compensation.. There need bo no difficulty in Now Zealand in'regard to tho ascertainment of compensation. We aro .familiar, with Compensation Courts under the Lund for Settlement Act and the Public. Works Act, and. on the wholo the tribunals provided have proved fair and satisfactory. The usual constitution of thu Court is a hoard of three presided over by a, Judge of tho Sur prenie Court with an assessor appointed by cither side.. Possibly, in viuw of a largi'. number of methods coming before such a tribunal, it could be arranged that it bo a constantly sitting •permanent" body. But' any.'objections to the carrying out of State ownership musk bo considered in tho light of alternatives, and 1 believe that tho alterimtire to vigorous support if a Stato ownership proposition will be absolute prohibition. I- have already stated •that what this means. It is prohibition of tho manufacture, importation, or salo of alcoholic liquors, and tho iosiilt will bo that tlie. consumption of liquor will be wholly prohibited except such as may be illicitly manufactured. Cost cf Prohibition. "Now prohibition as at present sought, means prohibition with compensation, and it is well for business men to consider what this means to tho country, apart altogether from tlie great cost of a special referendum and tho indirect loss' of tho disturbance of tho community during tho campaign. What is tho direct loss? According to the latest actual figures tho

Excite duties arn 185,953 Customs 720,020 License fees '12,978 Interest on compensation, say 225,000 Total 1,171,960 "Tliesu /inures aro considerably loss thaii tlio actuality because there- have been increases in duty ami excise, ami it is generally conceded tTiat the figures* will ho about That in a eonfiervative ostiniate of what prohibition is going to cost this country per annum, lo sny nothing of the principal debt to ho ultimately repaid and provided for by■ sinking fund. I. may say that my .estimate of. the interest cost is upon the basis'of'the Efficiency Board's.figures, which 1 believe to ha considerably less than will be allowed. Aa a mutter of fact, th'o Prohibition Party have recently stated that lljq Trade proposes to claim fiflieeu y.illion iii the event.of State oiynership "being carried. This- is manifestly ah; eurd because it is each iindivtdunl interested who iiuist- claim, and not the Trado as a whole, but 1 give it as an indication that, the Prohibitionist Party aro themselves . somewhat nervous about ! ' the. ' bill this unfortunate country ; will have to foot .if prohibition... is , .'carried. This, however, is' the alternative you have to face, and 1 nut it to you ,as business men whether you consider ; ifc good business, apart from tho other considerations.for the moment, to disorganise this country in the middle of its huge obligations and burdens in respect of the war by asking it to readjust tho whole of its financial nud taxation arrangements. It must be remembered that when the national issno of Prohibition versus Continuance was .consented to by Parliament it provided that a period of approximately four and a half years should elapse before licensed houses would be closed and compensation bo payable, but in the present proposals of the . Efficiency Board we are told that Parliament was wrong in this,'and that immediato Prohibition was necessary.

'T have been trying to find where ill New Zealand. this terrible inefficiency through drink- lies. \\'it]i duo candour I say I have not been able- to discover it. Yd we have been told that this country is.an inefficient country, so inefficient' that we ihust have a referendum and that wo must carry Prohibition or the country will continue to be inefficient. To-charge tliio country with ineflioiency after four a;id a half .years of. war is an-.insult to you, gentlemen—(boar, hear)—because not only have our soldiers shown their efficiency on tho battlefield, but so have our women- at home in Now Zealand. , (Hear, hear). As business men, yon know best if there is inefficiency. We were told by the military ■ authorities wlio went' before the Commission that drink ha 4 not been the cause of any inefficiency'in camps or regarding military training! -Where, then, are we to go to find this inefficiency?" < . A voice: To the 1 Hev. ' Dawson. Mr.'Findlu'y: "Yes. I am sure that you are all proud'to feel that the boys from New Zealand have a record as unsullied and as splendid as any soldiers who ever lived. I believe that these men, bred in a country where they drew tho breath of freedom, are at least as good as nion brought up , in the glasshouse of a : Prohibition State. Better that men should be reared to resist the temptations of life than that they, should be left a' prey to them when they go abroad. , -' (Loud applause.) The chairman described Jlr. 'Findlay's address as very interesting and very instructive. A vote of thanks, moved by Mr. J. A-. Pike, was.carried with. acclamation.—(Extended; report, published ...A'.