Invercargill Licensing Trust 'sticks to its knitting' for 75 years

Monday, 22 April 2019

Invercargill Licensing Trust president Alan Dennis at the Don street demolition site where the ILT is spending all its $30m-plus cash reserves on a new hotel in central Invercargill.

In 1943 Invercargill folk had had enough. Well 8015 of them anyway.

For 38 years prohibition had existed and on September 25,1943, the people of Invercargill - 8015 votes to 6342 - restored the sale of liquor.

It was the votes of 81 per cent of the Invercargill soldiers overseas that swayed it towards the 60 per cent needed to scrap prohibition.

Those returning from battle simply wanted to legally drink a beer.

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As a result the Invercargill Licensing Trust was formed to oversee the sale of alcohol in the city.

Throughout the 75 years, ILT establishments have opened and closed - sometimes for good. In 2015, former Appleby Tavern employees reminisced about the old days before its doors were closed for good. From left, Carol Chin Poy, John McCann, Joann Grennell and Audrey McKelvey. Behind is bar lady Justine Fowlds who has worked at the Appleby for 10 years.

Seventy-five years on and many licensing trusts throughout New Zealand have come and gone.

As far back as 1990, former prime minister David Lange described trusts as a bizarre experiment and said they were an endangered species.

Yet close to 30 years on, the ILT is in the midst of its biggest ever project.

It is spending $40 million on a new CBD hotel.

The ILT is pumping all of its $30m-plus cash reserves into the hotel and will go into debt to make up the rest of it.

ILT president Alan Dennis says the project is a vote of confidence for the future of both Invercargill and the ILT.

So why has the ILT remained so powerful in an era where many licensing trusts have folded?

Dennis, who has also served as the New Zealand Licensing Trust Association president, believes there are a few elements to it.

The demolition site of the former Commercial Vehicle Centre building on the corner of Gimblett street and North road, where the new Waikiwi Tavern was built in 2016.

'We've stuck to our knitting. The reason we were setup in 1944 was sound, the profits for alcohol and hospitality would be returned to the community. Unlike many trusts, we've stuck to that knitting.

'Some of the others have been tempted to delve into other projects or sell parts of their business for short-term gain, we are not of that mind-set.'

It would be wrong not to point out the ILT's exclusive rights as another reason.

Just four of the remaining 18 licensing trusts have exclusive rights and they just happen to be the most successful - the Mataura Licensing Trust included.

That exclusive tag does make the ILT's existence a polarizing topic.

Some do not believe one organisation should have a 'monopoly' on the alcohol trade.

Dennis gets the angst, but feels the monopoly line may be overplayed.

The Invercargill Licensing Trust's Waikiwi Tavern and Foundry Restaurant, which was officially opened in 2016.

He says more than half of the liquor licenses handed out in Invercargill are for non-ILT establishments. Restaurants, entertainment venues, and clubs.

'The only thing that is really different here, compared to other cities, is you can't buy wine and beer in supermarkets.'

New Zealand Licensing Trust Association president Linda Cooper believes the concept of licensing trusts is as valuable as ever and as a result Invercargill's setup is the envy of many other cities.

Cooper says liquor licensing is rampant, pointing to South Auckland where alcohol outlets are popping up on almost every street corner.

Having an organisation like a licensing trust, which is held to account by its community, is good for social responsibility, Cooper says.

The ILT has good relationships with the Invercargill police and it worked well for the city.

The downside is the public can not buy alcohol in supermarkets, but Cooper believes it is a small price given the money that is returned to the community.

She doubles as a trustee of the Waitakere Licensing Trust, which in recent times has received threats from parts of the community who want the trust gone.

For a licensing trust to be ousted, for a start 15 per cent of registered voters needs to sign a petition to kick-start a referendum.

Following that, 51 per cent of voters then need to agree to scrap the organisation at a referendum.

The push in Waitakere, Auckland is struggling to gain the traction needed, but Cooper says it is a reminder that licensing trusts need to remain relevant in their community to survive.

The supermarkets have largely stayed out of the latest quest to get rid of the Waitakere Trust. However, Cooper believes if the supermarket giants did mobilise, with their wealth and power they could provide the biggest threat to licensing trusts.

In Invercargill, the late Louis Crimp in 2009 to tried drum up enough signatures to spark an ILT referendum. It was his second crack after also trying to get enough signatures in 2002.

The sign said 'No Dogs'' so what's the problem? Re-enacting one of the many famous stunts pulled by Southland eccentric Sam Cusack, Keith Gaines -- dressed more or less appropriately -- enters the Appleby Tavern, assisted by Cherry and her owner, Heather Kissell in 2013.

Both times he came up well short.

Dennis says their own polling suggests about '80 to 90 per cent' in Invercargill support the ILT, but adds they do not take it for granted.

The ILT on average pours $8.5m annually back into the community. It is that which makes the organisation so attractive to the people of Invercargill.

Of the $8m, close to $5m is from the ILT Foundation which is from profits from gaming machines in ILT establishments.

ILT general manager Chris Ramsay says the quest is to help make Invercargill a vibrant place, while returning its profits back into the community.

'We're not a passive community funder. We are one that has been proactive and at the forefront of many great initiatives – ILT@Enrich, ILT Stadium, amongst others, and now a brand new inner city hotel and food and beverage precinct.'

A $31,000 donation towards the learners swimming pool at Conon St in 1956 was the ILT's first major donation. Fittingly to mark its 60th anniversary 15 years ago, the ILT funded the build of a new learners pool at Splash Palace.

Arguably the organisation's biggest funding project in its 75 years has been Stadium Southland.

It is something Dennis says the trust is proud of, believing the stadium is Invercargill's most important community asset at the moment.

'It was born in the ILT board room, I happened to be there at the time. I think it has been the one real positive for the city.'

The ILT's history has been built on its suburban taverns and restaurants. Think the Southland, Glengarry, Northern, Waikiwi, Newfield, and Appleby.

The Appleby has since closed because it was not viable, but the others remain an important part of the ILT stable.

There is the business element attached to the taverns, which Dennis says is important, but he believes they also serve as meeting points for people within those communities.

It is why they are still prepared to throw money at the venues to upgrade them and try to ensure they remain welcoming for families.

Although Dennis does acknowledge the food and beverage industry is changing and the ILT need to be up for change.

The question now is, can the Invercargill institution last another 75 years in a climate where licensing trusts continue to be under threat?

'As long as it sticks to its core beliefs, I think so,' Dennis says.

'Having said that we can't have our feet stuck in concrete, we need to be prepared to move with the times.'

The ILT is one of Invercargill's biggest employers with about 700 staff and is creating more roles.

Ramsay says finding staff to fill the available positions could be one of the ILT's challenges in the future, particularly as it gets closer to opening The Langlands.