N.Z. considered ‘over shopped’

Press, Volume CXIII, Issue 33154, 19 February 1973, Page 14

N.Z. considered ‘over shopped’

fjteic Zealand Press Association > PALMERSTON NORTH, February 18. New Zealand was “over shopped.” and the duplication of shopping facilities was creating waste of capital and human resources, said the Minister of Overseas Trade (Mr Walding) today.

Nat only was there a danger of waste, but in the long term it would be expensive to the consumer, because the consumer would pay for every new shop built. Mr Walding said.

Mr Walding was addressing the National Association of Retail Grocers, and had spoken about the “great proliferation” of shopping centres in urban areas, leading to duplication.

Because of a similar situation in the petrol trade in 1935-37, the Efficiency of; Industry Act had been introduced in 1938, and petrol resellers had been licensed. The criterion used in that ■ field, for the granting of new licences, had been that it had to be shown that the existing

service was inadequate. “How [many of the larger shopping complexes would be working today if that criterion were !used?” Mr Walding asked. There was room, he said, for reduction in mark-ups in some areas of the wholesaleretail trade. “It seems to me that in several areas the mark-ups are too high.” "Many people wonder why television sets, certain types ' of washing machines, food mixers, ana sewing machines should have up -to 40 per cent mark-ups,” Mr Walding said. The grocery trade, by efficiency and with the stimulation of keen competition, had made remarkable progress by reducing retailing retail margins, he said. The conference will discuss a remit which in effect seeks to make it an offence to sell goods at a price less than 3 per cent above the

cost of the goods to the retailer.

Mr Walding said that, in principle, the Government would take the view that in any case where specific price control was warranted, the control should fix maximum rather than minimum prices.