Increase In Trade Investigations

Press, Volume CIX, Issue 32050, 26 July 1969, Page 46

Increase In Trade Investigations

(New Zealand Prefs Association) WELLINGTON. July 25. Investigations by the Industries and Commerce Department into possible unfair trade practices rose sharply from 90 to 133 in the last year, the department told Parliament in its annual report.

The report was tabled in the House today. It said attempts in some quarters to break out of existing restrictive trade patterns had brought resistance by established traders. The traders had tried to maintain their favourable trading positions by a variety of methods designed to prevent the entry of new competitors or at least to keep their trading practices in line 'with those already existing. Thirty-five of the investigations last year concerned re- . fusal to supply goods for re- • sale, and there was increasing i evidence of existing traders trying to make wholesalers i and manufacturers restrict : the availability of their 1 goods, the report said. While the parties often ! claimed that such practices i were justified because of the ! need to preserve “orderly : marketing," the net result : was often the perpetuation of ’ inefficiencies in distribution. Another prominent device

to restrict competition Was the practice of collective price fixing by members of trade associations.

This again operated to perpetuate inefficiencies. Price levels were often fixed in such a way as to minimise the need for competitive effort on the part of the leastefficient firms.

Other complaints related to the refusal by trade associations to admit new firms to membership. Investigation had shown that in some cases the reasons for this had been dislike of the vigorous trading policies of the newcomers.

The report said two of the investigations had resulted in the issuing of orders by the Trade Practices Commission. But all other matters had been settled by discussion, and the Examiner of Trade Practices had been able to persuade the parties to abandon the harmful trade ■practice or remove its object enable feature.

The report said the service extended to the public in New Zealand -for the investigation of price control complaints was without parallel in any other part of the world.