"SOME DEFECTS"

Evening Post, Volume CXXXIII, Issue 7, 9 January 1942, Page 6

"SOME DEFECTS"

AUCTION SYSTEM

VEGETABLE BUYING

TRIBUNAL'S COMMENTS

The Price Tribunal, in its report on the inquiry into the high prices of vegetables, has some comments and suggestions to make in respect to competition at auction. The tribunal, after reviewing the position, expressed the following opinions:— 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 eliminating intermedi- -'.'■ ate costs wherever possible. The method, the tribunal suggests, could safely be left to 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 vender as auctioneers. The tribunal states that it will continue to explore the practicability of fixing maximum prices in respect of certain classes of the -less perishable kinds of vegetables, more especially in such circumstances as haVe existed this season, "where the creation of a 'ceiling" is necessary, to protect the public." ■■ ..-■ .' ;",'CO-OPERATIVE-"SYSTEM.-./y^ThevtribUhal, refers.to a system envisaged by Mr.- A> P. O'Shea, .Dominion secretary of the New Zealand Farmers' Union, of co-operative marketing under which produce: from the Hutt Valley would be sen in by special train to Wellington, and there would be markets near tfre railway station controlled by the growers; where, retailers could ' bargain^ direct from producers, thus doing aWay entirely, with the present system of selling vegetables at auc- . tion. :r"f;': •.: ■ •■/■.'; <;; :' •■'■■. . : While the tribunal states that it see? much :tb be commended in such a plani it thinks that, the system of auctioning -been: in force for so many years should not be lightly abolished, and that if changes are to be made in -' the niethod; of wholesale selling, then they should be more of ah evolutionary jiaturev r ■'.'■'. ■'■ ■■■■• -:' ■: ■■'. . ■••:■ '■'■'' ; T^ the markets in Wellington, and says that it agrees ■witht-Mr.••: Pritchard, of the Department ; Agriculture, that their situation is vyery-unsuitable, and their lay-out most '-■ congested.v.>y,-;/ ;■■■:'■'■■ -"-^ '■ •"'. ' , •'..■' :/l/:S':-> >?A^SERIOUS iDEFECT."; . \:'fAfter a full consideration of the ; erfa&ice,'? 4he report continues, "the • tribunal has come to the conclusion \ ■thaitjthere is a serious defect in the v; auctioi^ring system, namely, that .' jn-^unes of shortage competition forces prices^ up i unduly high, it may be conceded that in iiiaes ;of glut the auctioneering sys;iem the consumer. : :"It> has ibeen; stated by persons of. experience that a 6 per cent, shortage is sufficient to make the markets soar, while a 5 per : cent, excess is sufficient to break the market. During the last few months the positipnihas been made •worse; by fact that the buyers for ; forces have been large purchasers at auction, and privately from - the auctioneers, and it is believed that Jin^someKcases 'they have actually bid '.; against!each btfter..; .vCras also evidencethat in some; cases vegetables, v inlal time of shortage,: have; been ptirchased- by auction at; Auckland, and. ■railed :-to Wellington;rand auctioned again,^ These^^ are; serious defects, butt ' the: auetioheering.system has the great advantage of bringing buyer; and seller together quickly; The tribunal is of ppini'h ;that if the-grawers endeavour- .'■ -:;ed to : Seli direct- ;by-private^ treaty to buySrs^the time involved would be so gr^i:Eipto:add ■considerabry to the ' c6st>"an3p nloreoyer, in some cases,;it #6uld 'Kbe if not. impos- ; sib|e>ifpi*vgrqw;ers;;tq; attend, iri person, : ,•/ ;'' ■