CHAIN STORES

Evening Post, Volume CXXII, Issue 106, 31 October 1936, Page 11

CHAIN STORES

CONTROL ISSUE

RECOMMENDATIONS TO

PARLIAMENT

■WAGES & STANDARDS

Important recommendations regarding chain stores were made by the Industries and Commerce Committee of the House of Representatives in.a report presented to the House today. The Committee has been . taking, evidence on the .subject for some. weeks past. . '

The report of the Committee was as follows: — . . • .

"The Committee finds that the single unit retailers are experiencing increasing difficulties in successfully., competing with larger scale organisations, that, the latter form of organisation is able to offer price advantages to the consuming public; that largescale organisations tend towards monopoly, reducing the .■ number of buyers from ■ manufacturers , and producers, and of sellers to the public.

"The Committee is of the opinion that it is desirable to maintain the advantages of large scale organisations in the interests of the consuming public, and recommends that the Government give consideration to the advisability of exercising some form of control over them when such action appears necessary to prevent monopoly and abuse of power over producers and purchasers of goods.. The system of taxation as applied to chain stores in some countries is worthy of study in this respect.

"The Committee is further of the opinion .that:—

(a) There is too much differentiation in the wages paid to retailers' assistants handling the same or related . types of goods in" different kinds, of. establishments, and that in the interests of fair competition there should be uniformity in this regard; ......

(b) A definite case was made out regarding the lack of uniformity in the opening and closing hours of shops. The Committee recommends that the law should be amended in *.his respect;

(c) There should be specific standards for goods as far as possible for. the protection of traders and the purchasing public.

"The Committee regards the limitations of departments for specific trades as suggested by the petitioners as quite impracticable; and does not make any recommendation in this respect. The Committee commends the system of consumer co-operative trading as worthy of encouragement, and . suggests to single unit retailers the advisability of adopting co-operative methods for their own protection against .the new forms of competition with which they are faced. . • . The report was tabled. Speaking to the report, Mr. B. Roberts (Government, Wairarapa) urged the development of the co-operative movement, which, he said, had reached tremendous dimensions in Britain. Moreover, it was responsible for the purchase of more than four millions sterling of the produce of the Dominion. The Attorney-General (the Hon. H. G. R. Mason): Does it appear to the Committee that that would solve the problem in this case? Mr. Roberts: Conditions at present are very difficult for,,small individual traders who are crushed between the upper and lower millstones. The development of the co-operative movement would be their salvation. - Mr. E. P. Meachen (Government, Wairau) said that under the chainstore system inferior goods were being sold and some of the confectionery, was. unfit for human consumption. Nothing was being done to check the sale of inferior goods for which there had .been an excessive demand in recent years because of the depression and the lack of income of the people.. He denied the claim that the chain-store system had lowered the price to the worker. ~ ■ Mr. C. H. Burnett (Government, Tauranga) did not think the report went far enough. Small stores would be crushed to the detriment of local authorities. He suggested that the Government should take evidence from local authorities, particularly small ones, on this aspect of the question.-' Mr. Mason said the Committee was to be congratulated on presenting a courageous report. .