FRUIT IMPORTATIONS

Evening Star, Issue 22880, 11 February 1938, Page 10

FRUIT IMPORTATIONS

STATE CONTROL PENDING FIRMS LOSING VALUABLE CONNECTIONS NO COMPENSATION FOR LOSSES [Peb United Press Association.] AUCKLAND, February 10. It is authoritatively stated that the Government proposes to take control of the importation of all fruit into the Dominion as from April 1 next. Such fruit will be distributed at its discretion through the leading wholesale firms in the Dominion. Its action will mean that many old-established firms largely centred in Auckland, which created and developed the importing trade, will lose the connections built up in some instances over the past 50 years. A further statement is made that there is no intention by the Government to give compensation to the importing firms, either for the loss of their importing business or for the sums they have invested in the organisation of such trade and in the financing of growers and other suppliers.

GOVERNMENT ORGANISATION? The impending action by tbe Government really represents an extension on the complete scale of importing control,- for it took over the importation of Cook Island oranges last season, and it controls the importation and distribution of Samoan bananas. Soon after the granting of the mandates affecting Samoa the State purchased bananas from the natives. In the early stages it brought bananas to New Zealand, these being distributed through the ordinary trade channels. Subsequently the distribution was made the subject of tenders, but last year the Government changed the system, one firm handling the cargoes. Now the fear is entertained by merchants that, while the Government under its latest scheme of complete control of fruit importation, will use selected trade sources, its ultimate aim for the socialisation of the business is the creation of its own organisation. BLOW TO IMPORTERS. The opinion is expressed in the trade that some firms as a result of ithe Government’s control will lose 50 per cent, of their business. From the financial aspect, some Auckland firms, apart from their long association with the importation of fruit, will suffer much because their business extends over the whole of the Dominion. The leading Auckland importing and distributing firms are A. B. Donald Ltd., Turners and Growers Ltd., Radley and Co, Ltd., W. H. Grove and Son, dagger and Harvey Ltd., and Perkins and Sons Ltd. In any scheme of control of importations the Government’s operations will be widespread. At present bananas are imported from Fiji, Samoa, Tonga, Cook Islands, and sometimes from Norfolk Island. Australia, Jamaica, Cook Islands, California, Japan, and Norfolk Island supply oranges. Prior to the embargo because of fruit fly, Palestine was also a Mandarins chiefly come from Australia, Fiji, and- Cook Islands, and grapefruit from California, Jamaica, and Australia. OFFICIAL RETICENCE. ¥ I am not in a position yet to make a statement,’’ said Mr F. R. Picot, Director of Internal Marketing, when questioned on the possibility of the Government taking control of the importation of fruit. He said that there was a move on the part of the Government to control a certain line only of fruit coming to the Dominion, hut he could not say anything further, as details were not completed. ... He refused to give any indication as to the time when the control was likely to come into effect. LOCAL OPINIONS

DOUBTS CONCERNING PUBLIC BENEFIT This statement was referred to some leading members of the trade in Dunedin this morning, and the opinion was fully and unanimously expressed that, should this be adopted by the Government, it will not react to the benefit of the consumer any more .than to that of the private importer. Experience has gone to show that, in a case of this kind, it is impossible for a Government to handle the matter as economically and efficiently as it can be done by firms or individuals who have spent many years, and much money, in building up a system of trading. Government control will probably mean a regulation of supplies, and, in view of the uncertainty in the fruit trade of gauging the public demand, it is obvious that the consumer must suffer. Under the existing system private are in competition with one another are more likely to bring about conditions which react to the benefit of the public than would be the case under Government control. ' There is ; for instance, the . danger that the importation of certain lines of fruit would be restricted in order to “protect” local growers; and there are other possibilities in connection with the regulation of prices which would not be to the benefit of the public. If it is the intention to bring in fruit at a cheaper rate, there can be no quarrel with the proposal, but the local traders are very sceptical concerning the ability of the Government to do this. Special knowledge of a trade which is admittedly one of the most complicated in existence, cannot be gained in a moment. However, it is admitted .that until fuller details of the Government’s intentions come to hand not a great deal can be said. So far as the direct importing end of the business is concerned, Dunedin would be affected to a very much less degree than would Auckland, for instance.