Grocers Want To Circulate Prices

Press, Volume CIII, Issue 30364, 13 February 1964, Page 6

Grocers Want To Circulate Prices

(New Zealand Press Association)

WELLINGTON, February 12.

The New Zealand Master Grocers’ Federation today asked the Trade Practices Commission to revoke an order it made m May, 1961, ordering the federation to cease circulating a price list to grocers. The grocers asked that they be permitted to circulate a suggested price list.

Counsel assisting the commission (Mr G. S. Orr) said the move was a “not too subtle attempt to render largely ineffective the existing order.” It was strenuously opposed by the examiner of trade practices in his capacity of public watchdog. “The increase in competition after-20 years of the absence of competition is to be encouraged, not discouraged, by this commission. It is difficult to believe that it is not a forerunner to complete revocation,” said Mr Orr.

To grant the application would be clearly contrary to the public interest, he said. For the grocers, Mr R. M. Barker, the president of the federation, said that if the commission granted the application the grocers would negotiate with wholesalers to restore the monthly price guides which were issued before the prohibition. If these negotiations were not successful, the grocers would try and compile their own price guides in which the prices would generally be the same as in other guides, but additional lines would be included.

Between the issuing of price guides the federation would send circulars to members with price changes or prices of new commodities. ‘ Retail Prices

Mr Barker explained how the prices would be arrived at. For goods still under price control the terms of the price orders would be used, though there were not many grocery lines still under control. The federation would incorporate retail prices recommended by manufacturers for their product. “These ‘recommended prices’ are not to be confused with ‘price fixations’ which, while operating in some Other retail spheres, are not existent in the retail grocery trade.

“This, statement does not infer, that the applicants are necessarily opposed to' resale price maintenance,” he said. Lastly, the prices would be fixed in respect of lines not already covered, by substantially preserving existing money of percentage profit margins, Mr Barker said. “The need for an adequate pricing service has never

been greater than now when so many lines are being affected by the recent increase in the price of sugar. “Talking biscuits and jams listed in current price guides we find there are no fewer than 460 prices shown, allowing for brands, varieties and sizes.

“It is safe to say these prices will be affected upwards in the foreseeable future. “Handy Calculator” “Whether the retail prices are recommended by the manufacturers in the case of jams, or by the preservation of existing margins in the case of biscuits, it is certain that no grocer should be expected to determine the price himself, and having determined them should be expected to memorise them. “The commission says ‘there is nd inherent objection, to the use of a price guide as an “aide memoir ’’ or handy calculator,’ and that is precisely the service it is- proposed to give.

“Whether a member charges such prices or more or less is a personal matter. ■' It is, however, fair to point out that under present-day competitive conditions few grocers could expect, to charge higher prices and survive in business,” he said. The commission reserved its decision.