BLACK MARKET

Greymouth Evening Star, 14 February 1947, Page 2

BLACK MARKET

PERISHABLE FOODS REMOVAL OF “BUREAUCRATIC SHACKLES’’ URGED FAILURE OF SYSTEM ALLEGED (P.A.) WELLINGTON, Feb. 13. The prevalence of black marketing in. perishable food lines throughout the Dominion during the past six months, was discussed at a meeting of the New Zealand Fruit and Produce Merchants ana Auctioneers’ Federation executive in Wellington. In a statement on the subject, the executive says that very many instances from all parts of the Dominion were reported of sales of vegetables, particularly potatoes and fruits, direct to retailers end consumers, at prices above those scheduled in price orders. Growers naturally will endeavour to obtain the best returns available for their labour, more so in such a season as this, when the weather has -affected crops so adversely. The obvious result of this practice is that a favoured few get the supplies, and the many go without. Going Out of Production

Taking a longer view, a more regrettable result of these prices, which have no regard for crop deficiencies catised by inclement weather, is that some growers tend to go out of producing controlled lines in favour of those that are free, or, alternatively, to concentrate on controlled lines which are easier to produce at certain times of the year, the statement adds. Others have given up cropping or fruit-growing altogether, and have put their land to other uses. Fifteen hundred acres of apple trees have been grubbed out during the past few years, representing a loss of approximately 228.600 trees. Greater production—and so cheaper goods—is needed, the statement continues. It has been proved during the past few years that, so far at any rate as perishable foodstuffs are concerned, the desirable object has not been achieved, but has been definitely discouraged by price control and ceiling prices. The present system has caused a reduction in production, and the appearance of a considerable black market, which the Price Investigation Control is either unable, or unwilling to combat. The removal of all restrictions and price controls from perishable foods would immediately encourage greater production of all varieties, which, in time, would mean a greater share for more people at reasonable prices. Better Goods; Cheaper Prices

Alternatively, a very much more generous ceiling should be allowed, the statement says. This is particulary applicable to pip fruits. New Zealand apple growers, under the existing price controls, are selling at a level ■well below world parity. This season, early new season’s apples have been driven underground! Whereas normally, supplies were available between Christmas -and the New Year, the first consignments to wholesalers this year were made by the Internal Marketing Division this month. Let New Zealand follow the example of every other Englishspeaking country in the world, and remove the shackles of bureaucratic control from the perishable food industry, conclues the statement. The immediate result would be greater supplies of better quality, at a cheaper average price.