COMMENT DEFERRED

Evening Post, Volume CXXVIII, Issue 103, 28 October 1939, Page 12

COMMENT DEFERRED

RESTRICTION TOO SEVERE

Retailers of fruit in Wellington were not prepared today to comment on the effect of the new schedule of maximum retail prices of citrus fruits. The president of the European Retail iruiterers' Association of Wellington (Mr. A; M. Holland) said his association had so far had no opportunity to study the new selling conditions, but that'it was quite possible a general meeting of retailers would be held early next week, after the committee had considered the position. One wholesale merchant, referring to the position of retailers under the new schedule, said it was an established factor in the retail sale of fruit that, to v allow for unavoidable wastage and deterioration, a gross profit of 33 1-3 per cent, on selling priceequivalent to 50 per cent, on cost price—was necessary if the retailer was to obtain a fair return; the limit of 40 per cent, now allowed was insufficient. He also claimed. that the new method of selling at so. much per dozen instead of so many a shilling would be to the detriment of the retailer. Other wholesale merchants stated that under the Marketing Division their profit had been limited to 10 per cent, commission and that they had been compelled to discontinue a former handling charge of one penny, a package. This meant that the merchants had been limited to a smaller profit, and at the same time they were faced with considerable increases in overhead charges through shorter hours and higher wages. The first fruit sold under the new conditions passed across auction floors today, and it was stated that retail buyers- all expressed dissatisfaction with the new prices.' '"Oranges were bought under protest this morning," said one merchant, "but they are in such short supply at the moment that retailers would have been forced to take them had they been £2 a case." Wholesale merchants said that lemons had proved slow for some days now, because the price fixed by the Internal Marketing Department was. too high for the class of fruit and had caused a falling-off in the public demand and consequent inability to dispose of stocks held by wholesalers. It was further stated that the holdup in disposing of lemons had resulted in deterioration, and extensive, repacking had been necessary last week. Merchants considered that it would have been much more satisfactory to everyone concerned—from the Internal Marketing Department to the consumer—if the lemons thus affected could have been disposed of under the hammer for what they would bring rather than be left to deteriorate because the fixed price was too high to attract business.