Many Prices Increased

Press, Volume CVIII, Issue 31632, 19 March 1968, Page 1

Many Prices Increased

(N.Z. Press Association)

WELLINGTON, March 18.

As a result of devaluation a considerable number of applications for price increases had been received by the Trade Practices and Prices Division of the Department of Industries and Commerce, the Deputy Prime Minister (Mr Marshall) said tonight.

Mr Marshall said that well over half the applications so far received had been from importers and manufacturers of drugs and about 3000 individual drug prices had been

amended as a direct result of devaluation. . Among other products for which increased prices had been approved were imported fruit, fertiliser, motor vehicles and a few brands of imported cigarettes and tobacco. Mr Marshall said that the general principle being followed in dealing with specific applications was that manufacturers and importers should be able to recover only proven increased costs directly attributable to devaluation and that there should be no additional profit on this element of higher cost.

Mr Marshall said this meant that prices were being converted at unit njargins of profit.

In the national interest this principle was being safeguarded even in cases where a few cents were involved.

On non-price-controlled items, the Minister said that where manufacturers increased their prices justifiably because costs had risen due to devaluation, distributors should continue to get the same monetary profit received before the cost increase. They should not expect the old percentage profit to be. maintained as this would further increase prices and would mean they were profiting out of devaluation. This would be a short-sighted, policy which would rebound against them in the long term, he said.

Several complaints and inquiries on devaluation price rises had been received but in most cases the increases

were found to be warranted. Cases where doubt existed were still being investigated, he said.