Retailers’ fears

Press, Volume CXIII, Issue 33384, 16 November 1973, Page 2

Retailers ’ fears

(New Zealand Press Association) WELLINGTON, November 15. Retailers strenuously oppose the Government’s latest action on price control.

In a statement today, the president of the Retailers' Federation (Mr J. D. M. Liddle) said: “These regulations are against the interests of the consumers, the retail industry, and the country as a whole.” The Government should reduce its own spending and not expect the private sector to bear all the burden. “Inflation will not be controlled until this is done, and 'the retail industry rejects I these archaic controls on principle as being self- ; defeating.” said Mr Liddle.

Retailers had been working under fixed margins and price restraints since 1970, and had been forced to absorb increasing wage bills and other costs. PROFIT FIGURES “The reductions in retail margins demanded by the Government are in many cases well above 5 per cent, and consumers should be aware that actual profits to the retailer are between 2c and 5c on each dollar of sales turnover.” said Mr Liddle. The new regulations came at a time when retailers, as the largest employers of females, were faced by a major increase in the wage bill because of equal pay. Now the Government was forcing extra costs on to the industry and at the same time drastically reducing its ability to absorb these costs. “Retailers will have to reduce their ranges of stocks to the volume lines, and will reduce discounts and markdowns. There will be fewer bargain lines for the housewife. The Government will only succeed in reducing competition, and this will be seen in less variety,” said Mr Liddle. “STAGNATION” The latest price controls probably would lead to renewed stagnation and unemployment in the new year, said the Social Credit leader (Mr B. C. Beetham) today. The Government was tackling effects rather than causes. The president of the Federation of Labour (Mr T. E. Skinner) said the regulations showed that the Government was “trying to get all sections of the community to carry their share .in the fight against inflation. And this makes the wage controls a bit more palatable.” The profit control was;

I welcome, but he was disi appointed there was no control on rents or property prices. Mr Skinner noted that the auction system was not included, and that more houses were now being sold by auction. The Wattie group of companies was not likely to be seriously affected by the latest measures, said Sir James Wattie today. He had been concerned in case the latest measures removed incentives for production in this country. “But I can’t see this really happening,” he said. “The Minister of Trade and Industry (Mr Freer) had a very difficult job to do and my sympathies are with him. This is something that so far has beaten every country in the world. I hope that they will work out in the way he intends it,” said Sir James Wattie.