THE BEER TAX.

Globe, Volume XXII, Issue 1979, 28 June 1880, Page 3

THE BEER TAX.

[By Telegraph.]

[from otjb own correspondent,] WELLINGTON, June 26. A deputation representing brewers’ interests in various parts o£ the colony waited upon the Colonial Treasurer this morning to urge their objections to the beer tax. The following brewers were present:—Messrs Marshall (Dunedin), Lintott (Oamaru), Lee (Christchurch), Harley and Lingard (Wanganui), Duigan (Palmerston), McCarthy and Staples (Wellington). They were introduced by Mr IS. O. J. Stevens, M.H.B. The following printed objections were placed before Major Atkinson: —“ That in a young colony it is unwise to clog the springs of local industry by taxation.” “ That the tax now levied on colonial beer is a most serious burden upon the brewing industry of the colony.” “ That it has already lessened the output of the different brewers throughout the colony fully 25 per cent., and will, if made law, cause a large number of persons to be thrown out of employment at a time when the ranks of the unemployed are abnormally largo.” “ That the materials chiefly used in brewing—viz., malt and hops—are entirely the products of the colony, and largely assist in the settlement of small farmers on its waste lands.” “ That any tax on a manufactured article must have reflex action, and in part, at least, fall back on the producers of the raw material used in its production.” “That it is unwise to introduce in the colony the highly objectionable principle of excise, which has, wherever in force, had the effect of preventing any improvement in manufacture, and greatly lessened production.” “That owing to climatic influence the manufacture of beer is beset with so great risk and loss as to render the margin of profit to the brewers so small that any deductions for revenue purposes must have a mischievous effect, and cripple an industry in which large sums of money are invested, and which gives work to a large number of people.” “ That beer is an important article with the working classes, and as such should be exempted as much as possible from taxation, and its consumption encouraged in lieu of ardent spirits.” “That brewers’ plant and premises are mostly costly and extensive, and already heavily taxed for both general and local revenue purposes.” “That it is manifestly unfair to tax a manufactured article, many of the constituent parts of which have already paid Customs duties.” “ That it will hare the effect of crushing the small brewers, and creating a monopoly for the sole benefit of a few large capitalists.” “ That the tax is retrospective, and bears heavily on the brewers who have large stocks on hand and contracts to fulfil.” “That in the event of the tax becoming law, the brewers be treated as the distillers were, and be allowed twelve months to clear their stocks, and be paid the same scale of compensation fpr loss of vested interests.” The deputation generally pointed out that the tax would send many into the Insolvency Court, and out of the market altogether. The Hon, Major Atkinson intimated that before he could consider what would be done, he would like to see some statement of figures and facts regarding the brewing trade, as it would not answer the Government to cripple any industry. He had always been opposed to the tax, but the colony demanded taxation. He, however, would be better able to consider the matter when he saw figures regarding the cost of manufacture, the quantity of beer brewed, and the prices obtained.