Rises feared if top prices marked

Press, Volume CXIII, Issue 38183, 24 March 1973, Page 2

Rises feared if top prices marked

I.X'eic Zealand Press Association) WELLINGTON, March 23. The (lovemment’s scheme tor manufacturers to mark maximum retail selling prices on goods would tend to raise prices over many commodities, said the executive director of the Retailers’ Federation (Mr B. I. Purdv) today.

This was likely to be most noticeable in processed food, especially in main metropolitan centres, he said. "If manufacturers are re-

quired to print the retail selling price on merchandise, and this price is not to be exceeded, then it seems clear that the printed price will have to be the maximum price at the dearest point in New Zealand. Mr Purdy said that a survey was made in the Wellington area of prices on March 12. Of 83 food items selected at random. 61 were shown to be selling below the suppliers’ suggested price Five big supermarkets were tested and the variations m some instances were considerable These were all standard items and excluded specials "We believe that rr.anv smaller independent would also be working on Taxi fare* the New Zealand Taxi Proprietors Association has applied to the fares-tixing officer of the Ministry of Transport for permission to increase taxi fares. The branch secretarv (Mr M J. Malonei said last evening that the application had been lodged la-t June but withdrawn, ’hen re-lodged this week. If the Ministry refects the application. there is a right of appeal through the Licensing Appeal Authority. Mr Malone dec’ined to comment on rhe amount of increase applied for. or the reasons for 1

-imilar price structures," Mr Purdy said. "If the ‘official prices’| were printed on the merchandise. the tendency will be' for more items to be sold at those prices.” he said. The saving in the physical job of

cot remarking the price would result m some increases. Provided there was adequate availability of merchandise, retail competition would continue to ensure minimum prices. If all manu facturing industries faced similar competition, some prices certainly would l>< forced down "This is not simply a question of cutting manufacturers’ profits. The added pressure of greater competition would force them to improve efficiency, and mayb»targain harder over cost increases with both their suppliers and respective unions.” Mr Purdv said ““If adequate competition cannot he provided from within New Zealand, some imp, >rts of finished good*should be allowed, if only to show adequate price comparison "However.” said Mr Purdv, "let there be no suggestion that this federation’s polic\ is other than support | for full employment.” Referring to the price stabilisation statement last night by the Minister of Trade and Industry (Mr .Freeri. Mr Purdy said: "To state that all wholesalers and retailers simplv increase the price on a!) existing stock whenever there is a price increase from their suppliers is unjust. “The Minister must be badly misinformed if he be-

.lieves this to be the case. Retailers have played a (strong part in trying to limit price increases, and have I frequently held any ;r--icreases for a considerabletime.” The price measures were

only a palliative. They would increase inflation and delay further the long-term restructuring of New Zealand’s' economy, said Mr Purdy.