EFFECT OF RATIONING

Dominion, Volume 34, Issue 109, 1 February 1941, Page 10

EFFECT OF RATIONING

Attitude Of The Hardware Association

"Much has appeared iu the Press recently about. Hie selling price ot fem.” Ing wire, and (lie margin of profit which should or should not be considered adequale, ami Hie time seems to have arrived when this matter should appear in its true perspective,” said Mr. F, B. Young, chairman of the Hardware Association, yesterday. “During normal times ami even to a somewhat more limited extent during the licence period English fencing wire has been imported to New Zealand bv makers’ agents on consignment. Naturally these agents were in a position to handle this on the basis of a small commission, as the finance was being provided by the manuftictnrers, and the money had nol Io be found by Hie agenis iinlil tlie wire was sold and paid for. ■■Since Ihe war practically no l.lnglish wire Ims arrived in New Zealand, am! firstly Hie morcbinils, and later tlie Government, have had to turn to Canada and U.S.A, for their requirements. In the case of the merchants Hiis lias not been easy, as dollar funds had to be provided before shipment. “Prior to the war £7 |y £S a ton on Canadian wire was not considered an unreasonable profit, and, taking into consideration tlie difficulties which are facing Hie distributor today, the provision made by the Price Tribunal does not err on the side of generosity. All shipments which arrive, and this also applies to the wire imported by the P.W.D., are in such short supply that rigid rationing has to be adopted so that (lie material can lie made to go round as far as pussllile. This doling out of wire in small lots lorces up Hie cost of storing amt handling "111 of till proportion to the value of tlie goods. This is easily understandable when il is recognized that a mereliaiit today is li.'indling about 10 tons to every 100 lie used In handle under normal conditions."