Food prices will be kept in check —claim

Press, 8 March 1984, Page 9

Food prices will be kept in check —claim

Supermarket owners believe the highly competitive nature of the industry will keep grocery prices in check now that the price freeze has been lifted. The controller of merchandise for Woolworths New Zealand, Ltd, Mr Brian Isherwood, said that there had been only a few price rises since the’ freeze ended.

“Throughout the freeze, the grocery trade showed a great amount of restraint. There were a modest number of increases, but these were allowed by law,” he said.

“The supermarket industry is one of the most competitive in New Zealand and this has kept prices down and will continue to do so.” The merchandise manager of Foodstuffs Christchurch, Ltd, Mr Warner Barber, said that the number of increases had been no more than usual.

A grocer in Wellington said he had put up the cost of 200 lines since the end of the price freeze but the executive director of the Grocery Manufacturers’ Association, Mr Ernest Newman, said most were “bringing into line” anomalies that occurred during the freeze. Mr Newman said he saw no cause for alarm in the sudden increases in the price of some grocery

A Lower Hutt grocer had approached Wellington’s “Evening Post" newspaper earlier, saying he had haa to put up the price of more than 200 lines, mostly in non-food products such as household cleansers. Mr Newman said most of the increases reflected the rising cost of raw materials. “You have to put these price rises into perspective. There have been a number of price rises since the end of the freeze, but it has to be remembered there are about 10,000 grocery items on sale in New Zealand.

“Most of the price increases are bringing into line anomalies that occurred during the freeze,” he said. Price-surveillance bulletins to keep the public up to date with price increases for certain traders will be issued fortnightly by the Trade and Industry Department starting next week. Under the price surveillance regulations certain categories of traders have to notify the department in advance of intended price increases or before fixing a price for any new goods or services.

This covers manufacturers with a turnover of $lO million or more and any supplier of services with a turnover of $3 million or more.