FIXED PRICES

Evening Post, Volume CXVIII, Issue 101, 26 October 1934, Page 10

FIXED PRICES

CHEAPER CIGARETTES

The tobacco trade throughout New Zealand has been notified of the new fixed retail prices of tobaccos and cigarettes, which are to take effect on November 1. •£. In removing tobacco and cigarettes from the schedule of the Commercial Trusts Act last session, Parliament signified its wish that the extreme cutting of retail prices should cease, in order that the retailer, who is dependent upon this business, should be given a reasonable chance to live. It was at that time suggested that all sections of the'trade should endeavourto agree upon a standard of prices which would be fair to the handler and with due regard to the interests of the consumer. Repeated representations had been made that retail prices .were being quoted in some quarters at so low a level that they meant cost price or even -less than cost to the ordinary tobacconist.

In May last a temporary fixed list was issued with the authority of all the principal tobacco manufacturers and agents in Now Zealand, and this had the effect of stabilising prices on a more satisfactory basis. Owing_ to the probability of Customs duties being dealt with during the session, and the hope that some relief in taxation on cigarettes would be provided, no attempt was made at the time of the issue of the-May list to raise cigarette prices to the consumer above the prices then prevailing, though in many areas those prices were extremely unprofitable to the retailer.

Following tlio recent alteration in Customs duties, negotiations have taken place between manufacturers and agent? on the one hand, and representatives of the retail distributing trade, and a basis of settlement satisfactory to all parties has been arrived at, the now prices coming into effect immediately the new duties come into force on November 1. The consumer will find that it has been possible to give protection to the retail tobacconist without any general increase in prices. In the case of tobaccos, most brands will be maintained at the lewest prices prevailing since May last, though in the case of a few leading lines an increase of one halfpenny or a decrease of one halfpenny or more will result. Whero price-cutting has not been prevalent and standard prices have been maintained, the tendency will be downwards. In the case of cigarettes, reductions are the order of the day, and the new retail prices will include standard brands at sd, 6d, 7d, and 8d per packet of 10. . Adjustments of manufacturers' prices, Customs duties, and a moderate scale of retail profits combined have secured the desirable results of stabilisation in the trade and lower p'riees to the consumer.