FIXED PRICE

Auckland Star, Volume LXVIII, Issue 31, 6 February 1937, Page 7

FIXED PRICE

ISLAND FRUIT. BANANA CONTROL. STATE TAKES ACTION. SUPPLIES FROM SAMOA. SEASONAL ADJUSTMENTS. (By.-Tc!csrarli. —Om- Corresponilen t.) WELTJXGTOX, this day. a result of recommendations by the committee that lias been investigating the marketing of fruit and vegc-tables-in Kotv Zealand, the Government has "decided to make an alteration in theimct-ho<l;of : -Oie disposalfof Sanioan banana?, which aro . to -be ; distributed imdcr-Stato-control.

For some years past these bananas have been sold under a yearly contract. While this method of disposal has been .■successful in retrieving the substantial losses made during the early years of the Government's operations, and has undoubtedly resulted in a high-class product being placed on the New Zealand market, it has from time to time been the subject of adverse criticism. This criticism has centred mainly round the peak prices normally obtainable during the stunmer months, when bananas are in great demand. The Government, states the Prime Minister, the lit. Hon. M. J. Savage, feels it should be possible to distribute bananas throughout the country at prices which, while not avoiding altogether the fluctuations which appear to be inseparable from the trade, will eliminate the extreme variations that have occurred during past years. Averaging Seasonal Prices. With this ol>ect the Government has decided fiiat for the future it will itself control the. distribution of Samoan bananas. It is its intention that all recognised wholesale fruit merchants will, be enabled to obtain on consignment their requirements of these bananas so long as they are able to handle them, to the satisfaction of the Government. The prices are to be fixed by the Government for each shipment, the object being to obtain throughout the year an average price that will just cover the landed cost of the fruit, plus a small reserve to meet contingencies. To achieve this objective it is anticipated that, in order to meet the lessened ability of the market to pay winter prices, the price will probably have to be below cost in the winter, and that in the summer prices must rise somewhat to enable the Government to recoup its temporary loss. Essential Feature of Scheme. It is an essential feature of the scheme that wholesalers will be required to supply fruit to retailers at the prices fixed by the Government, which prices P-ro to be designed to allow the wholesaler a reasonable return for his labour. 'It is recognised by the Government,", added Mr. Savage, "that a scheme such .is this requires for its success expert knowledge and arrangements. Therefore arrangements have been made for it to be operated by Messrs. Turners and Growers, Limited, of Auckland, acting as agents for and under the general supervision of the Minister of External Affairs. "Messrs. Turners and Growers, Limited, have for many years been handling bananas as wholesalers throughout New Zealand, and possess •the knowledge and experience essential for the satisfactory working of the present scheme. A Start Next Month. "It is the intention of Mr. Harvey Turner to visit the main centres almost immediately for the purpose of meeting both wholesale and the retail fruiterers. "plaining the full details of the proposals. Current contracts for the sale of Samoan bananas terminate in February, and the Government desires that the now scheme., which is to be regarded as an experiment for one year, should be lirought into operation in March."