AGY-4925 | Royal Commission on Liquor Laws in New South Wales

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A Royal Commission on liquor laws in New South Wales was established by Letters Patent on 23 July 1951. The Honourable Justice Maxwell was appointed as Commissioner. (1) The terms of reference for the commission were to investigate:
(1) The ownership, financial interests in and control of hotels generally and in particular by brewery and other companies, whether or not incorporated in New South Wales
(2) The “tied house” system of liquor trade
(3) The effect, operation and application of section 41 of the Liquor Act in relation to brewery companies and generally
(4) The desirability of re – introducing into the Liquor Act the Local option provisions of the Liquor Act which were repealed 1946
(5) The adequacy or otherwise of the present provisions of the Liquor Act relating to the removal of hotel licenses.
(6) The desirability of amending the Liquor Act to provide for additional club licenses.
(7) Whether the provisions of the Liquor Act reading to the obligation upon hotel keepers to provide accommodation and meals are adequate to ensure that the need of the public in that regard are reasonably satisfied.
(8) Whether the distribution of liquor – (a) as between brewers and spirit merchants on the one hand and hotel licenses on the other,
(b) by spirit merchants
(c) by hotel licensees
Is being carried out reasonably having regard to the quantities available, the requirements of the various interests affected and the needs of the public
(9) The extent to which all or any of the matters arising under the foregoing questions operate to the detriment of the public interest. (2) The Commission held 140 hearings, and examined 411 witnesses. 147 Exhibits were tendered to the Commission. In addition, 109 pieces of written evidence were tendered to the Commission. The Commission commenced hearings on 30 July 1951. (3) The period of the Commission was extended several times on the request of the Commissioner until 25 March 1954. (4) Key Findings and Recommendations under terms of reference
(1) The Commissioner concluded that it was acceptable for brewery companies to own a hotel, or several hotels as long as they had appointed a manager for each hotel, and therefore were not directly involved in the running of the hotel. He also found that there was trafficking of leases to hotel business, and recommended that the Liquor Act 1912 (No.42, 1912) be amended to prevent the transfer of licences before 12 months of the initial transfer. Justice Maxwell also suggested that applications for a transfer of a licence only be dealt with by the Licensing Court, in order to ensure that applicants for licences of hotel were fully investigated before the licence was granted. (5) (2) The Commission did not recommend the abolition of ’tied house system’ as it was not in the public’s interest, or financially practical. The tied house system entailed the brewer leading money to a retailer in order to set up a hotel. In return, the licensee would sign a contract to only sell beer produced by the brewer. (6) (3) The Commission recommended that s. 41 of the Liquor Act 1912 (No.42, 1912) (as amended) be omitted from the Act, as the section was too limited in its powers and could be flouted by formation of illicit companies. S .41 of the Liquor Act 1912 made it an offence for any one person to hold a beneficial interest in more than one license for sale of liquor (7) (4) The Commission did not recommend the re - introduction into of the Local Option into the Liquor Act 1912 (No. 42, 1912), as it was considered too narrow in its provisions. ‘The Local Option’ was repealed in 1946. This part of the Act had granted ratepayers in an area rights to object to the removal or granting of publican’s licences in their local area. (8) (5) The Commission found that there were problems with the provision of the Liquor Act 1912 (No. 42, 1912) concerning removal (or transfer) of hotel licences, particularly in relation to objections to removal of licences. The Commission therefore recommended that the class of objectors to the transfer of licences under s. 29 of the Liquor Act be widened, and the grounds for any objection be verified by affidavit to prevent vexatious claims. Alternatively, if the class of objectors was not be widened, Justice Maxwell recommended that consideration be given for widening the Licensing Courts’ powers in relation to costs of proceedings under s. 38 of the Liquor Act in order to discourage vexatious claims. He also recommended that Licensing Courts exercise s. 33 of the Act to prevent protracted and expensive hearings. (9) (6) Justice Maxwell recommended that the Liquor Act 1912 (No. 42,1912) should be amended to provide for additional Club licences on the proviso that licences only be granted to well conducted Clubs, which were meeting a genuine need in the community, and not causing unfair competition in their local neighbourhood. He further recommended that there should be priorities in granting of licences, particularly for clubs already in existence, and special provisions be made for R.S.L clubs within this framework. (10) (7) The Commission found that " there is a clear need for making statutory provisions either in the Act or by the Regulations for ensuring that the reasonable requirements as to accommodation or meals are met." (11) The Commission recommended the following amendments to the Liquor Act 1912 (No. 42,1912): to amend s.68 (a) of the Act to change the format of the lodgers register; to expand regulations under the Act to ensure that licensing inspectors recommendations regarding accommodation were made for the renewal of licences, as well as for the granting of new licences; to amend s. 126 of the Act be amended to ensure that under s. 124 and s. 125 of the Act infringements and falsifying of the register be considered an offence which could result in the cancelling of a licence. Justice Maxwell also suggested that the Licensing Court be given powers to vary the standards required for the provision of meal and accommodation in hotels and clubs throughout the state. (12) (8) The Commission found irregularities to the distribution of liquor, particularly in relation to hotel licensees (13), and also concluded that “there can be no doubt upon the evidence that in the metropolitan area conditions associated with six o’clock closing are deplorable; apart from any other consideration, a refusal to attempt some reform involved in my opinion, the conscious perpetuation of a clearly established evil; in addition the present closing hour encourages sly grog and after – hour trading at ‘Black Market rates”(14). The Commission made many recommendations to address problems with the distribution of liquor such as seeking the views of the public on the requirement to create longer opening hours for licensed venues (15), and amendments to s. 161 (1) and (2), s175, and s. 43 1 (a) of the Liquor Act 1912 (No. 42, 1912) in order to facilitate more effective policing of the distribution and supply of liquor. (16) The Commission ended with the publishing of the final report on 25 March 1954. Endnotes:
(1) NSW Government Gazette 24 July 1951 p. 2155 (3) Final report of the Royal Commission on Liquor Laws p.5 in NSW Parliamentary Papers 1954 Vol. 1 p. 55 (4) Ibid p.3
(5) Ibid pp.8 - 16
(6) Ibid pp. 17 - 25
(7) Ibid pp. 26 – 31
(8) Ibid pp.32 - 36
(9) Ibid pp. 37 – 43
(10) Ibid pp.44 - 54
(11) Ibid p.57
(12) Ibid pp. 57 - 58
(13) Ibid p.69
(14) Ibid p.87
(15) Ibid p.88
(16) Ibid pp.99 - 100