VEGETABLE PRICES

Dominion, Volume 35, Issue 47, 19 November 1941, Page 9

VEGETABLE PRICES

Tribunal Continues Its Inquiry AUCKLAND VIEWS Retailers Put Their Case Auckland market reports showing that prices of 13 major lines of vegetables in the first week of October, 1941, had increased by 115 per cent, over the prices for the same period of 1940, were produced by Mr. S. Coleman, a representative of the Auckland Fruit Retailers’ Association, when the Price 4 ribunal continued its inquiry in Wellington yesterday into _ vegetable prices. Mr. Coleman said the result was that today vegetables were carrying these increased price costs as well as higher overhead. In many cases in Auckland, landlords raised rents, for they had no fear of a shop remaining empty when Asiatics were seeking them. Pie quoted one case where the rent of a shop, owned by a local body, had been increased from £l4 to £2O. This was not indicative of the prosperity of the trade; the explanation was that a man having built up a business could not afford to let it go because - the rent was. raised. He just had to stay in possession and hope for better times.

The tribunal comprises Mr. Justice Hunter (chairman), Mr. 11. L. Wise (member), and Mr. L. Munro (associate member). Mr. Coleman stated that a suburban fruit shop with a weekly turnover of £35 would need to buy £24 worth of supplies and add. 50 per cent, gross to make a living; for a £5O turnover, supplies would cost £3B, and gross profit would need to be 37 per cent.; a shop .with an £BO weekly turnover would require £62 worth of supplies and a 32 per cent, gross margin. He quoted the 1937 report of the Fruit Committee in which it was stated that a reduction of 25 per cent, in the number of retailers would save more than £lOO,OOO a year in overhead in the four centres. Since this report was drawn up, said Mr. Coleman, fruit shops in Auckland province bad increased greatly, particularly those operated by Asiatics. Retailers’ Problems.

Fruiterers’ lines were so seasonable and perishable that at no time of the year could a standard percentage of profit be obtained. In March, 100 per cent, could be made on pumpkins; in November many shops would sell them at bare cost. There was 100 per cent, gross profit on cabbages at certain times; at others, principally spring and early autumn, retailers could not recoup their purchase price. On occasions, prices of similar lines halved or doubled between the start and finish of a day’s auction. Witness said that auctioneering firms had subsidiary companies which accepted buying orders and then competed at their own auctions.

His Honour: Do you suggest that is fraudulent, or that it is legitimate buying for clients? Witness: I would say it is a most undesirable practice. Mr. Wise: Has this practice increased recently? Witness: Yes, I understand tluß in Auckland the Army and Air Force use this method of buying in part.

Mr. Munro: If goods are bought at auction that way, can firms resell them on other markets?

Witness replied that some northern firms had branches where, he understood, vegetables which had been bought at auction by their own representatives at their principal markets, were sold again.

The chairman congratulated Mr. Colejnan, whose evidence lasted most of the day, on the complete way he had presented his evidence. It was a remarkable piece of work. It seemed that figures bad only to be asked for 'and Mr. Coleman coul.d dig into his bag and produce them. Mr. Coleman : I hope the tribunal will show its appreciation in a tangible way.

Mr. J. S. Roe, president, Auckland Fruit Retailers’ Association, advocated a return to the previous system whereby growers supplied retailers direct. This would eliminate transport and handling charges, commissions aud container costs, as well as auctioneers’ overhead. Forty-nine per cent, of the capital of one of the two largest au<’tioneeriug firms in Auckland was held by Chinese growers. There were no Chinese retailers in his association, which ha’d 184 members. They bad been invited to join, but declined. He thought the reason to be that award proceedings in respect of retailers’ staffs were pending. The brokers’ association will present its evidence when the tribunal sits today.