Consumers warned on price rises

Press, 20 August 1982, Page 3

Consumers warned on price rises

PA Wellington Consumers were yesterday warned by the general manager of the Railways Corporation, Mr Trevor Hayward, to beware of price increases in groceries allegedly made as a result of increased freight charges. Mr Hayward was responding to a statement by the executive officer of the Grocery Manufacturers' Association, Mr Ernest New’man, who said that most grocery items would be affected by last month’s 8 per cent rise in railway freight charges. Shops and supermarkets could automatically add the freight charge increase on to the cost of grocery items, except for those items that were subject to forms of price control other than the

price freeze. Mr Newman said.

He expected that this would happen over the next few weeks.

Mr Hayward said. “The Grocery Manufacturers’ Association has announced that it will be applying for increased prices of goods and it has said this results from last month’s increase in rail costs.

“However, we have looked at this very closely and it seems impossible to justify such a claim.

“The freight cost for a 440 gram tin of baked beans, for instance, would rise 0.147 or less than one-fifth of a cent. The freight cost for a tin of peaches would rise 0.259 or about one-quarter of a cent,’’ Mr Hayward said. “On this basis the Grocery

Manufacturers' Association statement must be seen as sheer nonsense.

“I urge housewives and other consumers to watch very carefully for price increases which are claimed to result ■ from this cause."

In Christchurch, increased prices have been announced for some Stacey and Hawker loaves of bread which will come into force on Monday. Three varieties of bread would rise in price lc to 76c a loaf, said the general manager of the company. Mr M. Horne. The increase was to reimburse the company for the fuel increases in this year's Budget, he said. They were made under the Price Freeze Regulations, 1982.