FAIR COMPETITION.

Auckland Star, Volume LXIV, Issue 112, 15 May 1933, Page 6

FAIR COMPETITION.

CO-OPERATIVE COMPANIES.

(To the Editor.)

As a retailer I must congratulate jjjj Minister of Employment and the board «n this latest effort to help the unemployed pe t medium of the issue of boots for an extra day's work. I fail to understand why all tli 9 squealing about Government interference, etc because of this scheme. The relief worker' are not potential boot buyers at present and I, for one, do not oxpect to loso one penny because of this assistance being given to tie men, but, on the contrary, I expect to gain as it will give the relief worker a slightly increased spending power. But I would point out something that is seriously interfering with the retailer, and that is the unfair eonipetition he is receiving from co-operative dairy companies. Created for a special purpose anil protected bj r special legislation, these companies are making the position of the retailer an impossible one in many country districts. If the farmer wishes to organise to purchase his requirements, by all means let him do so but should he be allowed to use dairy factories in unfair competition with others? Eren lis butter, which the storekeeper sells for hini is charged to the fanner himself at 9d per lb' but the storekeeper has to pay 10d net and then sell at a profit. I know of a dairy factory which is the B depot agent for one of the oil companies. This factory gets its benzine cheaper than the retailer on the street close by and also gets 5/ per drum for e-ery drum sent by thp oil company to the retailer, and yet the same factory turns round and sells 'the benzine itself as a retailer liekw what the service station it supplies can do it at. So one could go on, ad lib. The competition is anything but fair. Add to all this the fact that the factory is a privileged creditor and deduct its charges before the farmer gets his money, leaving the retailer to carry the bad debts, etc., and the disadvantage of the retailer's position will he obvious. Surely it is time the legislation governing such co-operative concerns vns altered to confine their operations to the main purpose of their creation—namely, the makin» and marketing of butter or cheese.

FAIR DEAL.