Prices Of Radio, TV Sets Defended

Press, Volume CIV, Issue 30858, 17 September 1965, Page 17

Prices Of Radio, TV Sets Defended

It is not the Government’s intention to encourage the development of uneconomic industries, nor to support unreasonably high prices, says the associate Minister of Industries and Commerce (Mr Shelton) in reply to a correspondent, “Sugarloaf,” who, in a letter to the editor of “The Press” asks questions about the cost of cameras, transistor radios and television sets. “Sugarloaf” wrote:— “Mr Shelton’s recent announcement concerning the purchase of cameras and transistor and television sets overseas is the last straw. Regulations are made more stringent, but nothing is said about a long-overdue substantial reduction in local prices. I have heard several overseas]

visitors describe our prices for these articles as fantastic. With our small population and high labour costs, the building up and protecting of such industries is quite unjustifiable, and the responsibility for the present state of affairs rests with Mr Shelton's Government. As cameras, television and transistor sets are hardly in the luxury class today, it is high time that we either started producing them at somewhere near overseas prices or imported them and switched our production to more economic lines. Would Mr Shelton please state why the heavy protection of these uneconomic industries continues and' when we can produce a new! 23-inch television set for £7O to £80?”

"Cameras are not manufactured in New Zealand and the prices of which ‘Sugarloaf’ complains are the result of such normal commercial factors as freight, insurance, duty, sales tax and wholesale; and retail mark-ups.” says | Mr Shelton. “Prices for New Zealand-, made transistor radios do not match those for sets from such mass production lowcost sources as Japan, but your correspondent overlooks the substantial role played by our radio industry in saving the expenditure of scarce overseas funds on goods which can be made to; high standards of technical! efficiency in this country.

“Any valid comparison between New Zealand and; overseas prices should take] into account such commercial. charges as I have mentioned. Goods of the type] mentioned by your correspondent often enter New Zealand as travellers' effects and so escape these charges. This tends to give a mislead-] ing impression of the price] levels which would result at the retail level if these ]

i, goods were imported com- : mercially. : - “New Zealand television- : set prices are showing some decrease with greater pro- ■ duction experience and the effect of growing competition. However, it should be noted that these sets are generally constructed to a high standard, suitable for fringe-area reception, and that they are usually housed in wood veneer cabinets. This is reflected in a higher cost of production. “I can assure your corres- ■ pondent that it is not the Government’s intention to encourage the development of uneconomic industries, nor to support unreasonably high prices.”