IS IT NEEDED?

Ashburton Guardian, Volume 67, Issue 166, 28 April 1947, Page 2

IS IT NEEDED?

INTERNAL MARKETING DIVISION DEPARTURE FROM ORIGINAL AIMS WELLINGTON, April 26. Another year of operations was completed by the Internal Marketing Division on March 31., and Parliament late in the corning session will get a report. But, states Ihe New Zealand Fruit and Produce Merchants’ and Auctioneers’ Federation, the information will be so out of date that critical points of last year’s operations are not likely to be mentioned. The Division’s annual report, which belatedly appeared last, session, contained a statement of accounts only up till September 30. 1945. The public know that there must have been losses in some directions last year, but the story is not likely to be officially revealed for at least lo months after the end of the financial year. Ordinary business concerns handling the same commodities as the Internal Marketing Division manage to get out a yearly balance in time to comply with the income-tax requirements and those of the Companies Act. The taxpayer who stands at the back of this State organisation is given every opportunity to forget its mistakes owing to lapse of time. When will it be known what loss was sustained some \Veeks ago through the selection of an unsuitable steamer to bring bananas from Fiji to New Zealand P

Full Production Discouraged

There is always a temptation to regard losses easily when the public purse can be used to meet deficiencies, but losses would not be incurred if the Internal Marketing Division adhered lo tire original idea that it was to be a supervising authority which would utilise tlie normal channels of trade, watching the consumers’ interests to make sure that fruit and vegetables would Ire plentiful and cheap. Consumers have been disappointed because another phase of Stale control. the imposition of ceiling prices, has also helped to dispose of the> “cheap and plenty” ideal. There, is no minimum price for most lines, except the few grown under contract. As the maximum official prices have discouraged full production, the general experience of the community has been that of shortage, because ceiling prices have discouraged full production, the general experience of the community has been that of shortage, because ceiling prices, considered inadequate by growers have encouraged illicit marketing—a higher price has been obtained by dealings which avoid the recognised channels of business, where ceiling prices operate and income tax assessments are' sure to be made. Costly Organisation During the war, when so much had to be produced to feed fighting men, particularly in the Pacific, the Internal Marketing Division served ti useful purpose in conserving some proportion of fruit, and vegetables for the New Zealand market. This involved the employment of a fairly large staff, but there is no real curtailment of the Division now the war is over. Its estimates of expenditure for last year made a total of £77,960 for staff alone. There were other items such as overtime and meal allowances £2OOO, travelling allowances and expenses £7500, the gross estimated cost of the Division being set down at. £140,025, a figure higher by nearly £14,000 compared with actual expenditure in 1045-46, though the staff was to be reduced bv seven to 233. In view of its many disappointing experiences, adds the Federation, the public is entitled to ask what the Internal Marketing Division is now capable of doing which privately controlled business could not, achieve at less cost, particularly if it enjoyed the backing of a sympathetic Government. The Division, with State backing, also had £140,000 of public funds appropriated to pay its operating expenses—with what results?