NEW LEGISLATION

Evening Post, Volume CXXII, Issue 13, 15 July 1936, Page 16

NEW LEGISLATION

GROCERS PERTURBED

THE PRICE-CUTTING

ELEMENT

With the incidence of shorter hours and higher wages it was impossible for the grocers to carry on as at present, declared the president, Mr. J. F. Turnbull, at the meeting of the Wellington Master Grocers' Association last night. The meeting was considered to be the largest ever held in the Wellington district. About ninety members were present, including a big representation of* new members.

After a long discussion on the 40 and 44-hour week, the meeting agreed that the only obstacle was the fact that dairies and such shops were allowed to keep open when the grocery shops were closed. It was felt that any benefit under the shorter hours would be offset by the loss of trade.

The attention of the meeting was directed principally to the effect on business of price-cutting, a discussion taking place on the retail prices of sugar, flour, and butter. As a result of the discussion, a deputation was set up to wait upon the Minister of Industries and Commerce, the Hon. D. G. Sullivan.

The point was stressed that it was impossible for grocers to continue selling the necessaries of life at cost prices. It was pointed out that sugar in small quantities cost the retailer 16s 6d net per bag.. The cut price was as low as 16s 2d, or 4d under the wholesale price. Butter was being sold at id a 1b profit, and flour, which cost the small retailer 29s 0.T., was being retailed in broken quantities at the rate of 27s sd. When the Government fixed the price of flour it assisted the grower, protected the miller, and gave the merchant a set margin for profit, but the retail grocer was left high and dry. It was also mentioned that althpugh the pricecutting grocer might be looked upon as a benefit because he kept down the prices of the necessaries of life, he was actually the cause of unemployment. After four years of the system the number of grocers employed in one district in Wellington had been reduced from 83 to 39.

The commission allowed on the sale of milk tokens was also discussed. It was decided on the motion of Mr. A. F. Thompson to send a deputation to the Wellington City Council to ask that the commission on the sale of milk tokens be increased from 2 to 5 per cent.