HIGH PRICES OF VEGETABLES

Dominion, Volume 35, Issue 89, 9 January 1942, Page 6

HIGH PRICES OF VEGETABLES

Tribunal’s Findings After Inquiry FOURTEEN CAUSES FOUND Recommendations To The Government Recommendations to the Government for the training of suitable labour, reconsideration of the question of the supply of vegetables- to the armed forces in New Zealand, planned production and marketing, licensing of retail shops to reduce costs, the avoiding of further land suitable for market gardening being taken for housing purposes, and an overhaul of the auction system, ate among the main features of the report of the Price Tribunal on its recent inquiry in Wellington into the causes of the high prices of vegetables. The report was issued last night by the Minister of Industries and Commerce, Mr. Sullivan, who said that the Government had decided to set up a special interdepartmental committee to function under the administration of the Minister of Agriculture and Marketing, Mr. Barclay, consisting of representatives of the Departments of Agriculture and Marketing and the Department of Industries and Commerce. The committee would study the report and suitable recommendations to Cabinet ■ through Mr. Barclay from time to time.

Causes for the present high prices of vegetables are'summarized-as follows: (1) The extraordinarily wet and cold season, which has been prolonged beyond the normal, has resulted in much lessened production. (2) The removal from civilian life into military service of many men employed by market and many others who would otherwise have done the work connected with the production of vegetables in home gardens, and the difficulty of obtaining skilled labour in replacement. (3) The increase in the number of people who live in flats and, as a general rule, are not in occupation of any land on which vegetables can be grown. (4) The steps which have necessarily been taken by the Food Controller for the canning in large quantities’of vegetables particularly for the supply of our Armed Forces abroad and in this country.

• (5) The heavy demands under present circumstances of the Army, Navy and Air Force for the supply of fresh vegetables for our Armed Forces. '(6) The dem(ind.for large quantities of vegetables 1 to be taken on board troopships- and other ships calling at New Zealand ports. . (7) So far as the city of Wellington is concerned, the much lessened production of vegetables in the Hutt Valley, owing to the fact thiit about 250 acres of land have recently been acquitted for housing purposes. ■ (8) Decreased production, owing to the increased ravages of pests and diseases. (9) The absence of planned production by market gardeners, due to the lack of organization of thel'.- industry. (10) The existence of too many re; tail shops, resulting in overhead being disproportionately high. (11) The difficulty of instituting any proper and reasonable system of costing, resulting in some retailers charging the highest price they can get. having regard to supply and demand. (12) The practice adopted by retailers generally of selling certain classes of vegetables by the bunch, regardless of weight. (13) The system of suctioning at a time of shortage has tended to increase prices as the result of competition for the available supplies. (14) The supply of carrots available in the markets has been lessened considerably by the demands of Tabbiters for poisoning purposes. A detailed analysis of the causes of the high prices and of the evidence submitted to the inquiry is given in the report. Of major importance are the following extracts: — Labour DiiHculties. To replace experienced men formerly employed by growers who are now serving in the armed forces, the report expresses approval of the suggestions by witnesses that natives of should be brought to New Zealand and also that Wbmen be trained,. Reference is made to the fact that in one market garden in the Hutt Valley of five acres, a young woman of 23 years was carrying on the whole of the work following the enlistment of her brother in the Air Force. The tribunal is of opinion that there is some room for improvement in the methods of buying vegetables for the requirements of the armed forces, and that in particular any possibility of buyers for the different arms of the forces bidding against each other should be guarded against. The tribunal thinks that the whole question of the supply of vegetables to the armed forces in New Zealand should be reconsidered, including the practicabil-/ ity of vegetable gardens being established alongside the camps, where repatriated servicemen could be employed in the work of producing vegetables for use in the camps. Hutt Valley Land. -Evidence was given that the lessened production of vegtables by the taking of land for housing in the Hutt Valley has been a factor in the present abnormal prices for vegetables in Wellington. No doubt other land will have to be taken for housing in the future, but the tribunal would recommend that if possible to avoid it further land should not be taken of a class which is satiable for market gardening.” The tribunal finds that no considerable area of first-class land suitable for the expansion of market gardening at Otaki and Levin is available, and I hat the cost of transport is a deterrent to securing supplies from further afield. The ’advisability of the Government providing for the registration of growers and the setting up of a council which would consist of market gardeners and officers of State departments to bring the industry into a condition of planned production and marketing is stressed. The report says it is believed that such a step would tend toward minimizing the violent fluctuations in acreages and production of recent years. Retail Shops and Costing. “Evidence was submitted to the effect that generally speaking there are far 100 many retail shops engaged in

the selling of vegetables, and that they have tended to increase steadily in recent years) This increase must inevitably result in a ' disproportionate amount for overhead being loaded on to vegetables to the disadvantage of the consumer. ■ “The Tribunal considers that some form of registration might be favourably considered by the Government, such registration to be accompanied by the prohibition of any newcomer starting business without the approval of the controlling authority, and with the further provision that where a retailer goes'out of business, no other person or firm, except where the public interest so requires, should be permitted to commence business in his place. ‘‘Evidence also showed lack of system by- retailers in costing and margins of profit generally, this being due to inherent difficulties by reason of the exceptionally perishable nature of many classes of vegetables. While fully appreciating the difficulties of implementing any costing system in certain classes-of commodities which are subject to serious deterioration, the tribunal neverthelgss thinks that markups of retailers in the different centres should not show th® wldee disparities that have apparently existed up to the present, and accordingly proposqs to continue its investigations to see whether it is possible to arrive at a more uniform and reasonable method. Auction System. /

“After a full consideration of the evidence, the tribunal'has come to the conclusion that there is a serious defect in the auctioneering system, namely, that in times of shortage competition forces prices up uqduly high, though it may be conceded that in times of glut the auctioneering system assists -the consumer.’’ - The following recommendations are made: (1) That every encouragement should be given to growers, individually or collectively, to sell'direct to the retailers and to the consumer, with a view to eleminating intermediate costs wherever possible. The method could safely be left tb be worked out by the growers themselves. (2) That it is highly undesirable that auctioneers should act also as merchants, because their interests as merchants are almost certain to conflict with their duties to the vendor as auctioneers. "The tribunal will continue to explore the practicability of fixing maximum prices for certain classes of the less perishable i kinds of vegetables, more especially iu such circumstances as have existed this season, wiitere the creation of a ‘ceiling’ is necessary to protect the public.”

HOME GROWING OF VEGETABLES

Encouragement Urged

"No doubt great numbers of people throughout New Zealand in consequence of the high prices which have obtained for vegetables during the past few months and the publicity given to the matter by this inquiry, have already planted vegetables to the limits of their home gardens, so that they may, as- far as possible, provide themselves witli vegetables,” states the report of the Price Tribunal on its inquiry into the causes of the present high prices of vegetables. “The tribunal cannot urge too strongly that people should be encouraged to do so. It seems clear that such action on the part of householders generally would not injure the market gardeners, and as a war measure, the tribunal considers that the Government should take steps to urge people to plant to the limits of the capacity of their home gardens all kinds of vegetables for their own use. Such propaganda should be supplemented by appropriate instruction on the growing of vegetables by the officers of the Department of Agriculture. “Iu this connexion the tribunal understands Hint good work is being done by and through the Department of Agriculture, with a view to encouraging the production within New Zealand of the best classes of suitable vegetables.”