Smith, Brown ahead

Press, 23 October 1978, Page 15

Smith, Brown ahead

PA Auckland Sales of Smith and BrownMaple Furnishing, Ltd, in the first three months of the current year were ahead in dollar terms, the chairman (Mr I. D. Reid) told the annual meeting. This improvement partly reflected Government measures to ease the economy. Indications were that in the short term slightly more buoyant trading could be expected. The question was how long the nation could sustain such a period. It would be unwise to rely on continuation of the present upturn for any length of time, he said. The Government was taking steps to develop a greater feeling of confidence and might well succeed. However, the perennial problem of the balance of

payments continued and this made it hard to see how any sustained improvement in the economy could be achieved in the short dr medium term. Mr Reid said the last year had been very bad for the retail sector and this had been especially true of the market sector in which the company specialised.

One factor offsetting this! had been the ability to sell I at attractive prices some! products bought from manu-l facturers at discounted price levels. The free flow of competi-l tive forces at the moment! was more than sufficient to! control prices and made Gov-: ernment price control inter-! vention unnecessary. Price' control was generally mean-j ingless. and not only time! consuming but very expensive to administer, Mr Reid said. As reported, the company! suffered a 19.9 per cent down-: turn in net profit to I $1,904,000 in the last June 30; year. Dividend was held at| a tax-free 16.5 per cent. !

Mr W. T. Morriss, who has been appointed to the board of Associated British Cables, Ltd. Mr Morriss, chairman of both the New Zealand and Australian companies of Harrisons and Crosfield, Ltd, is also a director of Wattie Industries Ltd, Re vertex Industries, N.Z., Ltd, and Chrome and Chemicals (N.Z.), Ltd.