PRICE CONTROL.

Greymouth Evening Star, 10 August 1920, Page 5

PRICE CONTROL.

TRADERS’ VIEWPOINT,

DEPUTATION TO MINISTERS,

PROFITEERING DENIED,

(Special to the “Star.”)

WELLINGTON, This Day. “We have been hearing mostly of one side for a long time. Now we hear the other,” was the Premier’s comment yesterday when a large deputation representing the wholesale and retail traders of the Dominion submitted to him and the Hon Mr. Lee (President of the Board of Trade) several suggestions to amend the Board of Trade Act.

The most important was that replacement value should be recognised in assessing a reasonable price of articles sold. There were different views among the deputation as to whether profiteering has taken place. Mr, Luke, the member for Wellington North, who introduced the deputation, said he had no sympathy with profiteering but merchants arrd retarl ers had a right to be heard in their defence.

Mr. E. H. Wyles, 'Christchurch, declared roundly that there had been no profiteering in business, if the matter was looked at reasonably, and profits viewed from the point of the whole business turnover. He strongly complained of the Board of Trade Act as a reflection on the whole business community. It did not comply with the traditional principles of British justice, because it assumed there was profiteering and the business man had to show a case why he should not be dubbed as a profiteer. Profiteering, declared Mi*. W. Gow, of Dunedin, went a long way further back than retailers. It must he traced to the source of supply. The Premier had declared that the producer was entitled to the full benefit of the open market, but he added, you tell a business man that he is not entitled to the benefit of the open marked, but has to be under control. The export of New Zealand’s produce has had the effect of bumping up prices against the local consumer to an extent far greater than the farmer realises, by the export of his produce. Mr. Massey : Would you stop export? Mr. Gow; No, 1 would take care that the local price is reasonable. Another speaker, a prominent Welling ton grocer, declared that under the nns of the Act any officer of the Board of Trade could go into his shop and pick a profiteering case though he was following the same principles as twenty years ago.

Air. Massey; You say you are guilty of profiteering. The grocer: Yes, according to Section 32, because the Act does not take circumstances into consideration. Mr. J. C. Enfrican, an Auckland provision merchant, said his firm made a gross profit of 5 per cent on 24 articles which were common necessaries. The firm’s expenses were 9JI per cent, last year. Mr. Massey : You meant a nett profit.

Mr. Entrican replied in the negative adding that they lost £5 a ton on salt, 20 per cent on candles. They reduced tea 4d a lb, which was more than the Colombo reduction.

TONE OF THE HOUSE. “Were any of you gentlemen in the House when the Board of Trade estimates were discussed the other night?” asked Mr. Leo. “You mean when Air. Wilford went wild ?” queried a deputationist, who admitted that the Government was up against a very strong element in Parliament.

Mr. Wyles : We think they don’t understand it.

Mr. Massey, in the course of his reply, suggested, smiling, that Mr. Gow’s education must be defective when he talked about the prices of exported products. The Government arranged for the sale of meat at the freezing works at the Imperial schedule rates while it paid £200,000 as a subsidy to keep down the price of butter; and £200,000 to, keep down the price of bread. “How much longer we shall be able to go on I don’t know,” he remarked. He emphasised the need olr encouraging production if New Zealand was to be enabled to carry its financial burdens. He reminded the deputation that there was a class in the community which all the time tried to make political capital out of the alleged inactivity of the Government.

DECLARING PROFITEERING RAMPANT. The Hon. Mr. Lee apropos of the objection to publicity, remarked that in Australia inquiries were published and everything given to the newspapers. . “Every gentleman present realises,” declared Mr. Luke, “that if there was no Board of Trade Act it would be God Help New Zealand,” but the deputationists indicated their dissent. BUTTER OUTPUT.

The Prime Minister has received a cable from the British food controller replying to representations of the New Zealand Butter Producers Committee regarding the coming season’s output, nr.d has passed the cable on to the Committee.. It is understood that'the cable will not enable the final completion of the negotiations to be secured.