Where the electors decide in favour of a reduction, a licensing court sits and decides what houses are to be closed. The licensing inspector has to summon all the hotel-keepers before the court, and the court selects the houses which are worst conducted, or which provide least accommodation, as the ones to lose their licences. The houses which are thus closed are given a monetary compensation on account of the annual value of the premises being lowered: the exact amount of the compensation is fixed by two arbitrators, appointed one by the owner and another by the minister. In case these cannot agree a county court judge or police magistrate is nominated by them as umpire. The whole of the compensation money is raised from the “trade” itself, by means of increased licensing fees and penalties for breaches of the liquor law. If these amounts are not sufficient, a special tax is imposed on liquor in order to meet the deficiency.
The amounts awarded as compensation have been, in the opinion of many, absurdly high. Thus at Ballarat East, where forty hotels were closed, the compensation awarded was, to owners, £26,126 0s. 9d.; to licensees, £13,855 18s. 4d. At Ballarat West, where twenty-six hotels were closed, the compensation came to, for owners, £12,280; for licensees, £8973. At Broadford the total cost of closing four places was £1220. The fact that compensation is paid makes many voters far less keen than they otherwise would be for reduction, even though the money so paid does not in any way cost them anything.
In many parts considerable use has been made of the powers of reduction. Thus in fourteen local option polls that took place in twelve months the people decided either for reduction or against increase, according as the purpose for which the poll was taken. The Victorian licensing laws have certainly prevented any considerable increase of hotels, though they have had but little effect in reducing the drink traffic itself.
The following communication from Mr. John Vale, secretary of the Victorian Alliance, shows how temperance men regard the present law. “The local option law of the colony,” he writes, “first came into force in 1886; some polls were then taken, but for the most part were rendered void by the condition that one-third of the electors must record their votes in order to constitute a poll. The publican party adopted the policy of not voting, and letting it be known that all who were seen entering the polling booth would be marked men, to be injured in every possible way. Thus, the secrecy of the ballot was destroyed. Only the temperance stalwarts faced the ordeal, and we were generally just a few short of the required number. In 1887 this condition was repealed, in so far as it related to the reduction of hotels. In the following year other polls were taken with success; but then, with brewery money, a process was begun known as ‘stonewalling’ in the law courts. The publicans would appeal on some technical point. Being defeated on that they raised another point; and so on, until after a time they hit upon one which had something in it, or the Government got tired of the process. As a result most of the victories of 1888 were made of non-effect. We then secured a provision doing away with the power of appeal in connection with local option polls. Since then, victories have been secured in a number of important centres, and the condemned hotels have been or are now being closed. The Victorian Alliance, however, has come to the determination to promote no more polls under the present law. It is believed that polls for prohibition could be carried with no more effort than is required to win victories for reduction. The antagonism to compensation has grown with experience. And in certain cases the licensing courts have used the power which they possess to issue colonial wine licences for public-houses closed by the popular vote, and in respect of which compensation had been paid. Wine shops are generally the worst class of drink shops; so that the last state of these houses has become worse than the first: for these, and other reasons, the above-mentioned resolution has been adopted.
“In future we shall concentrate our efforts on securing the direct veto without compensation. To this end we are about to secure the introduction of a Bill in Parliament. It will provide for a vote in each electoral district in conjunction with a general election, which takes place at least every three years, on the simple issue of prohibition. Each electoral district to decide the matter for itself. The prohibition would apply to the manufacture as well as the sale of intoxicants. A distinctive feature of the Bill is that it will provide for all women voting upon this question equally with all men. It, of course, provides for the repeal of compensation.”
Queensland.—Queensland has the most simple and thorough-going Local Option Act of any of the southern colonies. By this Act, which was carried in 1885, one-sixth of the electors in a place can cause a direct vote to be taken on one or all of three propositions: (1) that the sale of intoxicating liquors shall be prohibited; (2) that the number of licences shall be reduced to a certain number, not being less than two-thirds of the existing number; (3) that no new licences shall be granted. The Act requires a two-thirds majority to carry the first proposition, but the second and third are carried by a simple majority. In over eighty per cent. of the elections held for the purpose of voting new licences, the temperance party has won. Very few attempts have been made to secure prohibition, and none of them have been successful: in a few cases, however, the people have decided in favour of reduction. The experience of Queensland seems to point to the conclusion that in a community where prohibitionists are not very strong (as in England) a provision giving the people power of preventing the issuance of new licences will do more good than placing in their hands the option of prohibition which they will not use.
In Queensland children under fourteen may not be served with liquor even to take away, and persons under eighteen may not be served for consumption on the premises.
New South Wales.—The present liquor law of New South Wales was carried by Sir Henry Parkes in 1881, and came into force at the beginning of 1882. The power of granting licences is placed in the hands of stipendiary magistrates specially appointed by the Government, and several restrictions are placed around the trade. The people are given a limited local option as to whether they will have new licensed houses or not. Polls take place on this question once every three years, at the same time as the municipal elections. The popular veto only applies to small houses however, and hotels with over twenty rooms can be licensed whether the people wish it or not.
There has been a strong movement throughout the colony for a more complete measure of local option, and several times within the last few years it has seemed as though this would be carried. The one difficulty in the way is the question of compensation; and if the temperance party would only consent to recompensing dispossessed publicans, local option could be passed into law almost at once.
The temperance party itself in New South Wales has recently become divided. One section, consisting principally of the Good Templars, has wearied of seeking for local option, and declares that it will accept nothing less than State prohibition. Many of these irreconcilables are loud in their declarations that the great mass of teetotalers who are content to work for local option are little better than enemies of the cause. The only outcome of this split is likely to be the delay of temperance legislation of any kind there.