There are others who need your generosity

The latest article in the Herald on liquor law changes highlights the support of an unusual group: publicans! They are outraged by the unconscionably low prices that supermarkets charge. Low relative to the prices they prefer to charge, that is:

I don’t know how supermarket operators can sleep at night. …They are cutting the margins to the point where it’s very difficult for the breweries to move. …Now you can buy a Steinlager in a supermarket for $2. In my bars it’s $8 to $8.50.

Matt and I both share their outrage that competition has forced publicans to cut their prices and offer a better deal to consumers. They are now calling for the government to step in and legislate a minimum level of profits prices for them.

If you’re worried about the shrinking profits of bar owners in New Zealand, too, then head on down to a bar and make a donation tonight. We certainly plan to ;)

  • http://www.tvhe.co.nz Matt Nolan

    I plan to donate heavily tonight. I’m a sucker for good causes ;)

  • http://offsettingbehaviour.blogspot.com Eric Crampton

    This is hardly new. When I presented before Palmer’s committee, the damned Hospitality Association was ahead of me. They went way overtime (miserable sots), causing me problems with daycare pick up times. When I went in, I said: “Let me guess. They wanted you to force their competitors to increase prices.” Palmer said (my paraphrase, could be inaccurate, don’t threaten defamation, Geoff), “Yeah, I know a bit about rent seeking.”

  • http://www.tvhe.co.nz Matt Nolan

    @Eric Crampton

    Of course the idea is as old as time immemorial, but the Herald article and Rauparaha’s sarcastic reply are all today ;)

    I would also note that its an issue worth raising, since the government is seriously looking at a split purchase age – which will increase the implicit price for purchases from a supermarket and is really just a way for publicans to reduce competition.

  • http://antidismal.blogspot.com/ Paul Walker

    @Matt Nolan At least you can find somewhere to donate. Donation centres are a bit lacking in these parts just now. :-(

  • http://www.tvhe.co.nz Matt Nolan

    @Paul Walker

    That is a pity – you guys should head up these ways for a little while so I can donate you a beer ;)

  • http://www.nfldiscountjerseys.com/ allen

    i think donation may help bars in a short time,but can not support it for long time,after all ,bars are profit organization