PRICE CONTROL.

Auckland Star, Volume LXX, Issue 190, 14 August 1939, Page 8

PRICE CONTROL.

GROCERS' PROPOSAL. i NOTIFYING INCREASES. OFFER MADE TO TRIBUNAL. On tho ground that the price control regulations brought into force at the beginning of June aro unworkable in their present form, tho New Zealand Master Grocers' Federation, with headquarters in Auckland, has submitted constructive proposals for their revision to tho Minister of Industries and Commerce, the Hon. D. G. Sullivan. In the federation's view, its proposals would greatly simplify the work of tho Price Tribunal.

"Not. more than 10 per cent of the grocer# throughout New Zealand are notifying prico increases to tho tribunal, states the federation. Exact information is not, however, at present available. Tho view in the grocery trade j« that grocers generally are carrying on as before, varying retail prices according to fluctuations in tho wholesale market, passing on increased or decreases to the public, and making no attempt whatever) to notify increases to tho tribunal. |

An offer has been made by the federation to assist the tribunal bv making immediate notification of increases in prices, on behalf of all grocer*, but the tribunal has stated, in reply, that the adoption of this procedure .might be regarded as a breach of the Commercial Trust* Act, under which it is an offence to sell or supply goods at a price which is unreasonably high, if this price has been in any manner determined or influenced by any "commercial trust," or body of members. Five Thousand Grocers. This difficulty is one which, the federation considers, could be easily removed, and offers the only means of operating the system. It states that if notifications -were forwarded to the tribunal by ench of the , r )0()0 grocers throughout the Dominion a tremendous task would bo involved in investigating this huge mass of information and the delays which would result would involve difficult problem of retrospective action. If the federation were empowered to act ns agent for its members the system would lie greatly simplified, with advantage on both sides.

"We desire to devise some system by which the spirit of the regulations will Imj given full effect without the cumbersome work at present involved if the decision of the tribunal is adhered to," adds the federation. '

An indication of the delays which may occur was given to-day in a reference to the inquiry held last month into the increase made in June in tho price of sugar. After hearing evidence tho tribunal reserved its decision, which has not yet been delivered. Meanwhile two reductions have occurred in the wholesale price of sugar. This is regarded as an illustration of the need of prompt decisions in all cases where prices are under control. Tobacco is Exempt. Tlio tribunal has informed the federation that a few items not covered by the Commercial Trusts Act will be subject to group notifications of price increases. These include cigarettes and tobacco, several lines of patent medicines, and three commodities classed as foodstuffs, which arc distributed by I New Zealand manufacturers direct to retailers, without tho intervention of wholesale merchants.

Tobacco and cigarette prices are controlled under a price maintenance scheme administered by the Tobacco Trade Council. While appreciating the concession, the federation takes the view that it will lie of wry little value to grocers, as the proportion of the tnidc represented by the items would iiol. lie more than /> per cent. There remains 1)5 per cent of their turnover, which i« subject to notification by individual grocers.