PRICE OF SUGAR

Greymouth Evening Star, 20 October 1939, Page 12

PRICE OF SUGAR

GROCERS’ STRONG PROTEST. | FEB PRESS ABBOOIATION.] WELLINGTON, October 19. A well-attended meeting of the combined grocers of Wellington to-night decided to send a deputation to wait on the Minister for Industries and Commerce (Mr Sullivan), and place before him the serious position facing the grocers of the Dominion if they are not allowed to pass on to the public at .least a portion of the increase in the wholesale price oi sugar. The President of the Wellington Master Grocers’ Association, Mr H. A. Fanselow, was elected to the chair He outlined what had been done by the association and the chain stores since the notification of the increase in the wholesale price. Several attempts had been made to get in touch with the Minister; but they had been informed that he would not be available this week. They had also tried to get in touch with the Price Investigation Tribunal, and at first were told that the tribunal was too busy. However, the tribunal saw them later, and impressed on them that the action which had been taken had nothing to do with the tribunal. It had been fixed between the Minister and the controller of sugar (Mr B. L. Dallard). Mr Fanselow said that it had been learnt that two or three months ago the tribunal had investigated the sugar position, and made a report to the Minister on which he had acted in good faith. It was claimed, however, that the report showed a grocer’s profit on sugar to be very much greater than they had ever had, as it had overlooked the cost of bags., waste, etc. Under a price, of 4d per lb there was a profit of 11.2 per cent. A price of 4id would mean 16.4 per cent, profit. Mr J. F. Turnbull, president of the New Zealand Master Grocers’ Federation, said the figures in the report of Mr H. L. Wise, of the Price Investigation Tribunal, showed 31 per cent, profit. If such an outrageous profit were being made on sugar, he could understand the Minister’s attitude; but Mr Wise’s figures were “all to blazes.” The tribunal’s policy had been stated to be to permit prices to be raised by the amount of the actual increase in costs, Mr Turnbull said. That was all they wanted. The tribunal had never consulted them, and it appeared that it wanted to use the big stick. Grocers all over the Dominion were in an uproar, although Auckland might be satisfied because it was now geting 17.5 per cent. There ought to be similar conditions throughout the Dominion, and the fact was that they could not carry on unless they were allowed to increase the price.

POSITION IN AUCKLAND. Mr B. Sutherland, a director of the Self Help Co-op., Ltd., quoted a letter he had sent on Wednesday to Mr Justice Hunter, of the Price Investigation Tribunal, emphasising strongly that it was impossible for any grocer south of Auckland city to sell sugar at 4d per lb and carry on his business. No grocer could operate on a margin of 11.2 per cent, or anywhere near that figure.

His firm, he said, was prepared to sell sugar at 4d per lb in Auckland city, and at 44 d per lb in the other main centres. A price of 4d was satisfactory in Auckland city because of the lower cost of sugar in the shops, and cheaper operating costs, because under the award there a higher percentage of boys could’ be employed. Mr Sutherland said they were definitely satisfied that the costs and percentages of profits in the tribunal’s report were not correct, and that the fixing of the price at which sugar had to be retailed tn Wellington had been done on wrong information supplied to the Minister. He did not say the tribunal had wilfully misled the Minister. It was possible for the best of them to make a mistake now and' again, and he was quite satisfied that a mistake had been made. The Minister had been led to believe that grocers were making too much profit on the sale of sugar, and that they could stand an increase in cost to them without passing that increase on to the public. Mr H. J. Arnold, of Arnolds, Ltd., said it had been suggested that they should refuse to sell sugar; but by that they would prejudice their own interests, and 1 the interests of their customers, and he did not think it would be a very wise proceeding. Mr Fanselow said that communications had been received from organisations in Christchurch and Dunedin supporting the move being made by Wellington, and stating that they were prepared to send representatives to Wellington if a deputation were to wait on the Minister. The meeting also decided' to set up a fighting fund, and several donations toward this were received in a few minutes.