WARNING TO FIRMS

Evening Post, Volume CXXVII, Issue 17, 21 January 1939, Page 14

WARNING TO FIRMS

THE LAW TO BE INVOKED

INQUIRIES ON FOOT

fßy Teleeraph—Press Association.)

CHRISTCHURCH, This Day,

A warning that profiteering on account of the import regulations would not be tolerated was given by the Minister of Industries (the Hon. D. G. Sullivan) today.

"My attention has been drawn during the past few days to statements which appeared in the papers regarding increases in prices," said Mr. Sulliivan. "I refer particularly to a news item originating from Auckland concerning grocery lines allegedly affected by the import restrictions, and in respect of which advances in prices have been made by the wholesale suppliers and by retail shops. Some of the lines affected were matches, Australian canned fruit salad, canned apricots, canned vegetables, imported biscuits, canned asparagus, English meat pastes, and imported sauce. It was stated that increases in these lines had been brought about through some wholesalers advancing their prices for their remaining stocks in expectation [of a coming shortage. I also refer particularly to a statement which appeared in the 'Dominion* on January 20 to tthe effect that some Wellington wholesale grocery houses had advanced prices by 5 per cent, on practically all tinned foodstuffs, sardines, salmon, and herrings being among the lines so affected. The' reason given was a shortage of supplies because of the import restrictions.

"There is, in my opinion, no justification whatever for such an increase in prices, and where such increases have taken place, allegedly on the grounds of shortage resulting from import control, such increases amount of exploitation of the public. I wish to make it clear that the Government will not countenance such exploitation, and wherever it has taken place the Government will not hesitate to take immediate action, either under the Board of Trade Act or the Prevention of Profiteering Act."

Mr. Sullivan said that the officers of the Department of Industries and Commerce were at present investigating the increases said to haye already taken place, and wherever wholesalers and retailers had advanced their prices for the reason given they could be well advised to reduce their prices again. Through the Department a very close watch would be kept on prices, and the public could be well assured that the Government would not permit either wholesalers, retailers, or anyone else to take advantage of the Gov-ernment'-s import control policy to exploit them in any shape or form. Heavy penalties were prescribed by the Board of Trade Act and the Prevention of Profiteering Act, and the Government would not hesitate to take action in any case involving breaches of these Acts.