The Globe. FRIDAY, JULY 21, 1874.

Globe, Volume I, Issue 47, 24 July 1874, Page 2

The Globe. FRIDAY, JULY 21, 1874.

The Mouse of Representatives seem to have indulged in a great deal of talking, on Mr Reynolds’ measure for increasing the duty on spirits distilled in the colony of New Zealand. That such a powerful body as the distillers, (in whose ranks we may reckon the representatives of the brewing interest,) must have many advocates in the House, we know, and accordingly Mr Reynolds’ motion was opposed by those gentlemen on various grounds. One of the great points, attempted to be made by the advocates of retaining the duty as it at present stands, was that, the duty having been already fixed, it would bo a breach of faith towards the distillers, many of whom had invested a largo amount of capital in the erection of buildings, and the purchase of plant necessary to the successful carrying out of the business ; and that the effect of the increase in the duty would be such, that these investors who had tided over the last few years, would be compelled to close their distilleries, as it would be impossible to work them at a profit. It was this view of the case which induced Mr W. J, Cawkwell, some time since, to publish a pamphlet in which he asked the Government to fix the duty once and for certain, and if that duty seemed to him to be too high, he proposed to the Government that they should take over his lease, buildings, and plant, with which ho was at that time carrying on the business. The Government say that the distilleries have caused a great loss to the revenue, and that the customs’ duties on English-made spirits have fallen off, to a degree which shows that

at all events up to the present time the coloniaUj-made article has com-

peted su with the imported spirits in the New Zealand market. They naturally conjecture, that the distillers can stand a trifling addition to the duty which is now imposed, and that at the end ot a few years, they will be able to stand another addition to that sum. The Government have given the distillers a sort of protection for some few years past, and the result has been, as it is in almost all protective cases, a loss of revenue to the country. This revenue they very reasonably wish to see again raised to its former amount, and having given encouragement to the industry at its birth, they are of opinion that when it has been thoroughly started, it should be made to bear its fair share of taxation. The idea of the distillers claiming compensation for their alleged losses, will not, we think, bo seriously entertained by the House, and that they have bad to go to California for grain, only proves that there is a better market for the class of corn required for distilling purposes in England than there is here, and consequently that the New Zealand grain which is fit for that purpose finds its way to the old country, to reappear here in the shape of spirits,-which have to pay a heavy customs duty. That the distillers raise the cry of “it won’t pay” will not alarm any one, as we feel quite certain that many of the distilleries which are now in active operation, will not cease in consequence of the extra duty required by the present Government. And if the management of any of them, by any chance, should think fit to close their works, their place will be taken by others, who will see before them ample profits, in one of the most paying classes of business in which they can engage. That the demand amongst retail dealers for colonially-made spirits will fall off is not likely, and in fact they are now sold almost everywhere, and used very largely in mixing with the imported manufactured article. We may regret the latter fact, having a wholesome re-, gard for real Islay whisky, as compared with the Dunedin manufacture, but that it is a fact, every one connected with the trade .would, if they dared to speak out, admit. Altogether, we have not much sympathy with the class who feel themselves so much aggrieved at the proposals of Mr Vogel’s Government; and we think they will get over this slight reduction of their profits without very much loss of time, though they may make their influence felt on the next occasion on which Mr Reynolds, or those of his opinion, may have to face the electors who have returned them to the House of Representatives..