INCREASED COSTS

Evening Post, Volume CXXVIII, Issue 94, 18 October 1939, Page 15

INCREASED COSTS

EFFECT ON TRADING

FAIR MARGIN WANTED

The decision of the Price Investigation Tribunal to allow for the passing on of increased costs was discussed ,at a meeting of the council of the Wellington Chamber of Commerce last evening. The discussion was initiated by the president (Captain S. Holm), Avho referred to the announcement made in "The Post" yesterday.

Ml. A. R. Hislop said that costs overseas were bound to increase because of the war and New Zealand would have difficulty in securing supplies. There would be highly increased prices for many commodities needed for trading in New Zealand, and the authorities should allow importations Avithout too much stress on increased prices.

Increased overseas costs could be passed on, Captain Holm said.

Mr. P. E. Pattrick said that all increased costs would not be allowed for. Stationery was bound to increase in price, for instance, and the business man would not be able to pass that on. ' Mr. R. H. Nimmo said there were increased costs everywhere and it'was the duty of the Chamber of Commerce to make representations to the Government on behalf of traders or all of them would be forced out of business and become civil servants, jas was suggested in a certain recent speech. j Mr. Nimmo moved that the Associated Chambers of Commerce should be asked to make vigorous representations to the Government regarding the serious position with which traders were now faced. SHOULD NOT BE FROZEN OUT. Seconding the motion, Mr. Hislop said that the business community was of great importance to the country and should not be frozen out. Mr. Frank Wilson said he hoped there was no suggestion that the Associated Chambers had not done enough, because everything possible had been done. They should get behind the Associated Chambers, and he suggested getting the support of associations representing retailers, wholesalers, importers, and manufacturers in making representations. Members were unanimously agreed that the Associated Chambers had done good work, and that the motion should go forward as an indication of full support of what was being done.

Mr. W. S. Cederholm said an important aspect of increasing costs Avas the diminished return and reduced ability to replace goods.

Mr. M. G. C. McCaul said that if business could not be carried on in relation to replacement values trading could not continue. If the cost of replacement increased progressively the amount of goods for replacement would be reduced in ratio and the time would come Avhen the trader would be unable to carry on.

Mr. M. F. Luckie said the aim of the Government was to prevent war profiteering and he was sure the business people could show that increased costs could be dealt with without any profiteering taking place.

I Replying to the remarks, Mr. Nimmo said the crux of the Avhole position Avas the right to pass costs on. There was no question of making extra profits. All the business community wanted was a reasonable margin of profit. If that Avas not permitted business could not be carried on. If the true position was placed before the Government the traders would be given an opportunity, but they would not get it if they did not fight for it.

The motion was carried,