TALKS ON TEA PRICES

Press, Volume XCI, Issue 27675, 3 June 1955, Page 14

TALKS ON TEA PRICES

HOUSEWIVES’ VIEW OF OUTCOME MR EYRE EXPRESSES CONCERN (New Zealand Press Association) WELLINGTON, June 2. The Minister of Industries and Commerce (Mr D. J. Eyre) today expressed concern at the statement made by Mrs E. Taylor, of the New Zealand Housewives’ Association, that she was not satisfied with the results of yesterday’s discussion on the subject of tea. The Mir s ”ter said that he had invited Mr G. Laurence, of the Price Tribunal, and Mr T. Hewitt, a member of the tea trade, to answer any questions the Housewives’ Association wished to ask. The interview lasted two hours. The Minister said that Mr Hewitt explained very fully the functions of the tea trade, and how tea varied in price according to grade. Mr Hewitt explained that in this week’s auction the lowest-grade price was 2s ll|d landed in New Zealand, yet the “quality grade” and “good quality,” which all well-known brands packed here and sold, would land for 5s 3? t d and 5s 7d. “Obviously,” said the Minister,

“when Mrs Taylor says that the Housewives’ Association in Auckland will soon be able to buy unpacked bulk tea at 6s per lb this is not the high-quality tea that New Zealand consumers usually demand. “Furthermore, , history in the tea trade shows that when well-known brands have packed cheaper grades these have gone off the market quickly because of lack of demand,” said Mr Eyre. “The customer today demands a quality tea, and this is being retailed at 8s per lb, after having been landed in New Zealand at costs ranging from 7s to 7s 2d. As future shipments are landed at lower prices, retail prices will continue to come down. “Mrs Taylor was assured by Mr Hewitt and Mr Laurence that they would both be happy to give the Housewives’ Association any further information it desired,” said Mr Eyre.