POTATO PRICE CONTROL

Press, Volume XCII, Issue 27735, 12 August 1955, Page 10

POTATO PRICE CONTROL

CABINET ’ RELAXES PROVISIONS MAXIMUM RETAIL RATES RETAINED (Neu> Zeauma Prm AMOdatian) WELLINGTON, Aug. 11. The Minister ot Agriculture tMr K. J. Holyoake) said toaay that the Cabinet had agreed to a request from the Potato Board and the New Zealand Grain, Seed, and Produce Merchants’ Federation to remove the control on potato growers’ prices and resellers’ margins. The sole remaining control would be a maximum retail price. The continuation of retail price control would retain protection tor the consumer, said the Minister. It could be adjusted from time to time by the Price Tribunal. Mr Holyoake said that last month, as an interim measure pending consideration of the Potato Board’s recommendations, the fixed price to the grower was changed to a maximum one, to allow growers legally to sell potatoes below the authorised price if they so desired. Some were, in fact, selling below this figure. “The Potato Board's view,” said Mr Holyoake, “was that with the proposrt removal of all control on growers’ and merchants’ prices, the wholesale potato price would be able to move more freely in accordance with supply and demand. “The growers’ qwn fund, the Potato Industry Reserve Account, will continue to be used in times of surplus to compensate contract growers for supplies that cannot be sold,” said Mr Holyoake. “It will be remembered that, to facilitate the building up of the reserve funds, an amendment to the Potato Growing Industry Act was passed earlier this year, and provided lor the growers' levy to be increased to 30s a ton, or about l-8d Per lb. Provision was also made for the Government to guarantee bank overdrafts for the board, should it require temporary finance.”