ELECTRICAL TRADE.

Press, Volume LXI, Issue 18306, 13 February 1925, Page 9

ELECTRICAL TRADE.

REASON FOR PRICE INCREASES.

(BPSCIIL TO "THE PBESS.")

AUCKLAND, February 12,

The statement made by Sir Francis Bell (Attorney-General) with reference to an alleged attempt on the part of British manufacturers to fix certain increased prices in New Zealand for some lines of electrical goods was referred to electrical importers. Sir Francis said that if a combination were entered into to raiso pricca unduly and unfairly the Government would use every legal means to defeat such a combination.

The opinion on the matter expressed locally was that the Attorney-General had not bo'ea in possession of tho full facts when he made the statement. It was perfectly true that an increase in prices for cables and lamps, mentioned in the statement, had been made recently, but there was a full explanation for that. For years British manufacturers had been supplying Australia and New Zealand with cables at a cost of production figure, and often at less than tho cost of production. The Colonial tradp had resulted in a loss which was only compensated by the profits mado on tho internal English trade. Manufacturers had continued to supply New Zealand in the hope that the position would improve, but as a result of cut-throat competition there had boe'n no change for tho better as far as prices were conccrnod. This had meant that the people of New Zealand had been paying absurdly low prices for "Cables, and the same thing applied to lamps. Following on continued cutting of prices, tho position reached was that if New Zealand was to continue to receive supplies of electrical equipment from England she would have to do so at a price which would make tho trade worth while to tho English manufacturers. Hitherto tho price had not.been worth while, and was often a losing one, still, tne manufacturers had maintained exporting in an effort to keep the wheels moving The recent increase in the price of cables and lamps gave English manufacturers tho amount of profit necessary to induco exportations. Had it not taken place,' then English firms could not have afforded to continue to supply New Zealand. Exception was taken to the remark made by Sir Francis Bell that the Government would use every legal means to defeat a combination. It was pointed out that combinations existed in other departments of the commercial world, vet no action was taken m those cases. Banks and insurance institutions had their own associations, but were not subjected to Government action, and why, therefore, should the electrical trade be singled out for special treatment? . .