NORMAL PROFITS

Auckland Star, Volume LXXIV, Issue 38, 15 February 1943, Page 5

NORMAL PROFITS

GROCERS' STATEMENT

REPLY TO CRITICISM

Strong exception to a recent statement that black-marketing and profiteering in foodstuffs are rife throughout the counti'y is taken by the New Zealand Master Grocers' Federation in a statement released to-day. "It is a great pity that before such a statement was made the persons responsible did not investigate the position and get the facts," the federation adds.

To assume that because prices have risen someone is making an unreasonable profit demonstrates complete ignorance of the position, the federation declares. The grocery: trade is the largest purveyor of foodstuffs in New Zealand. The Government, through the Price Tribunal; at the commencement of the war, laid it down that no matter to what level cost prices of groceries might rise the unit of profit must remain the same, that is to say, if a line in 1939, which was bought for 1/ and sold for 1/3, thus showing a profit of 3d, was bought in 1942 for 2/ the retail price must not be higher than 2/3.

"In the opinion of the grocery trade, the public is being very well protected by the Price Tribunal, whose inspectors are constantly on the watch to see that the prices it authorises are not exceeded," continues the federation. "Price control has been in operation for over three years and it would be enlightening if the critics will quote one line on which an exorbitant profit is made, whether by manufacturer, wholesaler or retailer. It is easy enough to make a bald statement without any supporting evidence. In fairness to the grocery trade, to the Price Tribunal, and to the public let the critics produce the facts."