THE TREASURER AND THE BREWERS.

Globe, Volume XX, Issue 1410, 22 August 1878, Page 3

THE TREASURER AND THE BREWERS.

[Bt Telegraph.]

[from the cqrsespofdbnt Of the press.] Wellington, August 21.

The brewers' deputation wus introduced by Mr Marshall, who read a written statement of objections, to the effect:—(l) that the principle of faxing local manufactures is highly objectionable, inasmuch as it Beriously affects the development of the colonial resources ; (2) that a beer tax, if imposed by Government, will interfere to a serious extent with a coloniiil industry now becoming fairly developed after years of hard struggling and great expenditure of money; (3) that the tax, if borne by the brewers, will bo a direct tax upon the trade, and therefore a class tax, and, if borne by the consumer, will bear heavily on the working man, who looks upon his beer as being as much anecessity as tea and sugar; (4) that the tax whl have a tendency to increase the consumption of spirits, and that spirits and not beer are the chief cause of drunkenness in the colony. If a tax were necessary it should be on spirits, not beer j (5) that the tax is retrospective, and presses heavily on brewers who have large contracts to fulfil; (6) that those brewers who use English malt and hops are doubly taxed; (7) that it is a vexatious tax and interferes with the free development of > industry by encouraging private brewing in order to escape the tax; (8) that the tax would offer an inducement jjO use articles in the manufacture of beer deleterious to consumers, for the purpose of cheapening the cost of production ; (9) that owing to the falling; off of revenue, received from the importation of English beer, the brewers by having a tax on beer will have to make up that deficiency; that the falling off in revenue derived from the importation of spirits caused the colonial distilleries to be closed, the Government giving them twelvo months' notice to allow them to clear stocks, and also giving a large bonus as compensation for vested interests ; (10) that the effect of the tax would be to Btop competi!.ion, by forcing small brewers to close their doors, thus throwing the trade into the hands of a few capitalists ; (11) that the beer tax lias never been imposed in any of the Australian colo)ii p s. Mr Ballmce asked whether by "doubly saxed"- the deputation meant twice taxed.

Mr Marshall said he referred only to the additional duty. Mr Ballance said the amount of duty proposed 6| per cent., while the remission on sugar wns 2 per cent. It must be admitted that the falling off on English beer was due to the high duly. Would brewers object to a reduction of that duty, which would largelyincreasothe consumption of the beer. The duty on English beer in New Zealand was a shilling and threepence, while in the Australian colonies it was only ninepence. An increase on spirits would develope smuggling and illicit distillation, and be a loss to the revenue. He agreed that beer to a certain extent was as necepsary as tea and sugar, but a considerable duty was left on the two last. Mr Marshall —This the commencement of a tax on beer. How can we tell what will be the end ? Mr Ballance—Notice of motion has boen given to increase the tax on beer to threepence, but the Grovernment would not support that.

Mr Sharp said it would be difficult to collect the tax in country districts.

Mr Ballance said they would use the police force as revenue officers in smaller places. The (3-ovcrnment desired to harass brewers as little as possible. He believed the stamp system would be the best proposed. Bottling should be done off the premises. Mr Todhunter said the stamps would be used a second time.

Mr Ballance—We shall have a check upon that.

Mr Marshall—ls it the intention of Government that the tax shall fall upon the brewers ? Mr Ballance—The tax will fall ultimately on the consumer. The publican will put an extra charge upon the beer. The idea has been mooted of having smaller glasses. Mr Johnston—How will that bo in the case of pints and half-pints ? Mr Marshall—You will rob the poor man of his beer.

Mr Ballance—You may use a little more sugar.

Mr Johnson did not think the brewers in Auckland used ten tons of sugar within the year. Mr Ballance —That is a reflection on other brewers throughout the colony. I admit there is a claim for drawback as the tax came into operation this month and the remission is not until January. A remission on sugar would reduce the tax to 2 per cent. Mr Macfarlane, M.H.R.,Baid the tax would

injure the barley growing interest. One brewer in Auckland took ten thousand bushels of barley. Mr Joel considered the Treasurer had made too high an estimate in reckoning the price of beer at £5, whilo it is sold in Dunedin at £4 less 5 per cent, ordinary beer being from £5 to £6 por hogshead. The duty instead of being 6i per cent would be 13. The brewer would hare to produce an inferior article to sell it at a reduced rate. The higher classes only would benefit by the reduction on bottled beer.

Mr Ballance—By the reduction the working man would be cnrouraged to increased consumption. Ho bad heard the argument that the effect of the tax would be to improve the quality of the beer. Mr Joel denied that colonial beer was inferior in quality to English. Illicit distilleries would only manufacture whiskey and gin. The higher classes consumed brandy. Why not tax that ? Mr Ballance said he would consider the matter for next year's budget. Mr Joel said if the remission on sugar had been only a farthing, it would render the beer tax unnecessary. Mr Ballance—The sugar duty here is much higher than in other colonies. Mr Todhunter did not believe the publican would get anything out of the consumer except by adulteration. Mr Ballance thought the tax would strengthen the position of the brewing in. tercet. All taxation was a necessary evil.

Mr Todhunter—Would it not be as fair to tax woollen mills ?

Mr Ballance—That was a question that might come on for consideration when mills became numerous. They could not tax young industries to the same extent as b^er.

Mr Sharp said there was not an industry in the colony in which there had been so many failures as in brewing. Mr Marshall—Out of twelve breweries in Dunedin there are now only five. Mr Todhunter —There have been several failures in breweries in Christchurch.

Mr Sharp—The proposed taxation would reduce brewers' profits by 40 per cent. Mr Ballance said he had known many brewers who had retired with large fortunes. He had told Mr Burns, the representative of New South Wales, that if the duty was removed in New Zealand off Australian wines, New South Wales should remove the duty off beer. Mr Burns said they were freetraders, and would give the matter their best consideration. He was afraid Victoria would not muko the concession, in consequence of her strong prol cctive policy. He would consider the question. Mr Dodson suggested that the best form of stamp duty would be on corks. Mr Ballance said Q-overnment was determined to adhere to the proposed tax. As to contracts extending over a period when the tax came into operation, the Government intended to make that fall upon the contractee. He would also consider the question of granting a rebate on stocks. With regard to employers of labour brewing for workmen, he would ascertain the practice in England. The deputation thanked the Treasurer, and withdrew.