Apple prices ‘blatant profiteering'

Press, 7 May 1981, Page 1

Apple prices ‘blatant profiteering'

PA Wellington Blatant profiteering in the sale of apples has occurred since price controls were dropped, according to the Consumers’ Institute. ' * The director of the institute, Mr R. J. Smithies, said that many shops had increased their prices after the controls were removed in February. Markups were up to 80 per cent and 100 per cent instead of the maximum 40 per cent under the price controls, he said yesterday. The institute will ask the Minister of Trade and Industry (Mr AdamsSchneider) to reintroduce apple price controls.. Mr Smithies said , that a survey in the four main centres last week compared apple prices with the maximum allowable under the controls. “In Auckland we surveyed 18 stores, and at least five were charging 10c or more a kilogram above the previous - allowable maximum,” he said. One shop had priced red delicious apples: at $1.29, at least 36c or 94 per cent above the old limit;

In Wellington, .at least nine of. 28 stores surveyed were charging 10c or more a kilogram above the old figure. One was charging 36c above the previous

allowable maximum, or a 100 per cent markup. Of 71 prices checked, 38 were above what would have been allowable under the controls. In Christchurch, at least six of 23 stores charged 10c a kilogram more, and one was charging at least 24c higher, a ■ markup of 90 per cent. In Dunedin, four out of 24 stores were 10c or more over the old limit. The highest, 17c, was a markup of 74 per cent. “The good crop this year should have meant no. significant increases,” Mr Smithies said. Moreover, the Apple and Pear Board has increased its wholesale prices, and fruit retailers would have benefited from applying their normal 40 per cent markup to the increased wholesale price.

“Some of the . increases cannot be justified. This year there is a bumper crop of apples, and while many of these have been storm-damaged it is clear that the high prices are not caused by any shortage.” Price control should be reintroduced, he said. The Commerce Commission, which recommended removal .of control, should heed ..nd monitor the results of its decisions. Mr Adams-Schneider said Jast evening that he had not yet received the report, and could not comment in detail, but when it was referred to him he would have the matter investigated and instigate appropriate action.