Price scheme intention

Press, Volume CXII, Issue 32847, 22 February 1972, Page 3

Price scheme intention

(A'eu? Zealand Press Association)

NEW PLYMOUTH, February 21. The price justification scheme was never designed to stop prices rising, but to ensure that price increases recovered only the net increases in costs faced by manufacturers or packers, the Minister of Customs (Mr Gair) said in New Plymouth today.

“Until February 16 this year only' six applications had been completely declined because the need for a price increase had not been satisfactorily demonstrated,” he said.

On some 315 applications the full increases had been approved, and on 127 applications less than the amount sought was approved. “These figures show that without the scheme, at least 133 wholly or partly unjustifiable increases would have occurred,” he said at the con-

ference of the Association of Retail Grocers. It could not be estimated whether the price increases approved in full would have been greater if the scheme had not existed. Nor could it be known whether manufacturers who had not made application under the scheme would have increased their prices automatically without the necessity to justify their actions. The effectiveness of the scheme depended on participation by all sections of the trading community.