Licensing Trust - The Architect of Licensing Trusts Henry Greathead Rex Mason KC CMG

The Architect of Licensing Trusts Henry Greathead Rex Mason KC CMG

All great ideas have champions. There is usually someone who sows the seed, and then supports it to fruition. Who then was the originator of the licensing trust concept?

It is folklore amongst licensing trusts that they were based on the Carlisle scheme that had been established during the first world war on the Scottish border. The New Zealand parliamentary debates during the introduction of the first licensing trust legislation certainly suggests so. But the licensing trusts legislation was greenfields’ law and not part of the ruling Labour Party’s election manifesto. The Carlisle Scheme was also significantly different in key areas from the licensing trust legislation. There had to be a guiding force, a deep thinker who thought through concepts and ideals.

H.G.R.Mason was Minister of Justice from 1935 to 1949 (and again from 1957 to 1960). As such, he was responsible for the licensing legislation and thus shepherded the licensing trusts acts through Parliament. He is now regarded as making ‘possibly the greatest contribution of any politician to law reform in New Zealand in the twentieth century’. Among his many reforms, he reorganised and modernised New Zealand law in the major Law Reform Act of 1936, established the Law Reform Commission in 1937 and through his persistent efforts over many years, established decimal currency in 1967.

That Mason as Minister of Justice had the strength of character to pursue a radical experiment, can not be doubted. Undoubtedly he was a most remarkable man. Strongly principled and determined, there is an impression from the little that is written about him, that he was intense and dedicated.

There is other evidence too that Mason was strongly committed to the concept of licensing trusts: the Hansard parliamentary debates, his visits to Masterton at the time of the establishment of that Trust in 1947 and his ordering of the ballot paper, and his personal papers.

While not all Licensing Trusts have survived, the 19 that continue to actively trade and be involved in their communities, held assets in 2008 of NZ$313million, generated revenue of $357m, profits of $42m, and donated support to their community of $33m.

Were he alive today, Mason could be forgiven if he took some pride in what his advocacy produced.

On 25 September 1943 the voters of Invercargill, by 8,015 votes to 6,342, restored the sale of liquor within the Borough. Prohibition had existed for 38 years and the voting, on the face of it, was apparently a clear indication there was a mood for change. But controversy immediately arose. The 60% threshold necessary to achieve change had only been achieved with the overwhelming support (81.5%) of the soldiers’ votes overseas. The ‘domestic’ vote had been similar to the previous triennial polls at 56.8%. There were suggestions that the voting papers of the soldiers should be returned to New Zealand and recounted. But it was found they had been destroyed in the Middle East. While a good deal of inferences were thrown about, and the Prime Minister, Peter Fraser, offered explanations and a report to Parliament, there was no evidence that what had occurred in destroying the papers was anything other than a misunderstanding. Given the circumstances of the soldiers, it was entirely reasonable that they would give overwhelming support.

In Invercargill there was a mood of enthusiasm to start anew. But there were also considerable concerns. In the end because the community could not make up its mind, the Government decided. On 27 March 1944 the Government announced that they intended to pursue legislation that would set up a Trust that would be ‘…a body corporate, for the purpose of providing for the establishment of model hotels in the Invercargill licensing district …in the interests of the public well-being, and of providing for the sale of intoxicating liquor in the district and to provide for the distribution of the profits for public purposes.’ The Invercargill Licensing Trust Act 1944 came into force on 17 April 1944. The Masterton Licensing Trust Act followed in December 1947, and the Licensing Act in 1949.