Promise By Breweries No Meetings—With One Exception

Press, Volume CV, Issue 31018, 25 March 1966, Page 3

Promise By Breweries No Meetings—With One Exception

(New Zealand Press Association) WELLINGTON, March 24. The Trade Practices and Prices Commission was told today that breweries would agree to alter their method of setting prices.

New Zealand’s nine breweries promised to comply with the request of the Examiner of Trade Practices to discontinue the practice of agreeing on the prices or terms and conditions on which they sold beer.

Mr J. T. Watts, for the Brewers’ Association, asked that breweries be allowed to agree as a body on prices if the Government raised beer tax.

The commission (Mr B. S. Barry, S.M., chairman, Mr J. R. Dench and Mr F. F. Simmons), adjourned briefly before granting the application. The Examiner of Trade Practices and Prices, Mr A. G. Beadle, said in written sub-

missions that he investigated increases in the prices charged by breweries for draught and bottled beer after receiving several complaints. A meeting of representatives of the breweries decided last year to increase the price of draught beer by 4d a gallon, bottled quarts 8d a dozen, bottled pints 6d a dozen and cans 6d a dozen, he said. The agreement was a breach of the act, he said. It increased unreasonably the wholesale price of beer, unreasonably reduced competition in beer sales, and was against the public interest. The reason given for the increases was that, in spite of increasing costs, the price of beer had not changed since 1953, he said. 'Although this was partly true, it was not disclosed that beer consumption had risen 30 per cent during that period. Because of the rise in consumption breweries had been able to meet increased costs and had shown bigger net profits, Mr Beadle said.