PRIMAGE DUTY

Dominion, Volume 22, Issue 288, 31 August 1929, Page 13

PRIMAGE DUTY

“MUST BE PASSED ON”

THE BURDEN OF THE CONSUMER

Mr. H. D. Bennett, for some years president of the Wellington Master Grocers’ Union of Employers, and also for some time president of the New Zealand Union, stated yesterday to a Dominion reporter that it was quite wrong to say that the primage duty recently imposed by the Government would not he passed on to .'the consumer. Not only that, but in point of fact, the imposition of the extra 1 per cent, would result, not only in increased charges to cover its own incidence, but it would be the means of allowing traders to pick up also on the first one per cent. He had no doubt about that. How could the merchandise distributor in this country, already labouring under severe internal competition, paying ever-increasing municipal and general rates and taxes, be expected to find eight or nine hundred thousand pounds extra for national revenue and not pass it on? No doubt low-priced and keen-cut goods retailed at “silver” prices would still escape, but there came a point when the primage would certainly be tacked on, carrying with it probably 95 per cent, of the t&al. Mr. Bennett said that he thought that the net result of the imposition of the second one per cent, would result, because of the reason given, In the burden passed on to the consumer being greater than the calculated return based on one per cent, on dutiable importations. Even in cases where articles were priced by the nimble shilling and where it would not be practicable to add pennies, it could not be denied that the distributor must make up his outgoings, especially where based on his. costs, by a general Strengthening of his selling figures direct ami indirect. Furthermore, the experienced merchant knew his required percentage of profit and that was added to his cost. The primage was part of his cost. The inference was.quite clear. In the large majority of cases not only would present one per cent, be collected, but in addition a goodly portion of the first primage and both plus tradeis profits. “That is where we get to,” he concluded.