“Compensation By Drops In Prices”

Press, Volume CVI, Issue 31187, 11 October 1966, Page 3

“Compensation By Drops In Prices”

(A’ew Zealand Press Association! AUCKLAND, October 10. The controversy over the N.Z.B.C. programme on decimal currency has created the impression that traders intend to profit from the change, said Mr R. M. Barker, national secretary of the Master Grocers’ Federation, today. This impression was unfortunate.

With more than 3000 lines, grocers had a big task to face with the currency change. All prices would be converted in accordance with the Decimal Currency Board’s conversion scale. This meant some prices might show a fractional increase but others fractional decreases. A price of 7d would convert to 6 cents (7.2 d increasing the cost by .2d, but the price of lid would convert to 9 cents (10.8 d with a reduction of .2d. “I have consistently expressed the hope that in the change retailers will neither gain nor lose as a result of the conversion,” he said. “What people seem to overlook is that many prices ruling today will alter before the change, not because of decimal currency, but because of increased costs resulting from higher wages and other overheads. “For this reason, it is a fa! lacy to pick on any one item today and to forecast its likely retail price in July of next year.” In basic lines which were subject to subsidy, such as milk, bread, eggs and butter,

price adjustments could be made up or down with no variation of retail margins by compensating adjustments in the level of subsidies paid. He was willing to go anywhere and speak to anybody on the subject, as there was nothing to hide, said Mr Barker. The public could be sure grocers were being thoroughly trained in the conversion of pence to cents in a way which would ensure fairness.