PRICES RAISED

Gisborne Herald, Volume LXVI, Issue 20066, 12 October 1939, Page 14

PRICES RAISED

TRIBUNAL IGNORED ACTION BY TRADERS DELAYS UNDER SYSTEM ' BUSINESS RESTRICTED' (Specinl to the Hovnlil.) AUCKLAND, last night. Because of delays toy the Price Investigation Tribunal in dealing with applications to advance prices of commodities and articles, based on higher landed costs, or of other goods affected by seasonal conditions, a large body of traders feel compelled to ignore the price stability emergency regulations. They are advancing prices without authority from the tribunal. They regard the delays by the tribunal as inevitable under regulations of such rigidity, which must severely restrict business, causing a shortage of supplies and increased unemployment. “It is impossible for us to operate our business under the present cumbersome procedure,” said one trader, who stated that the, general view in business circles was that the regulations were developing such chaotic conditions that it was obvious the Government would have to modify them in some way. . Ruling in Great War “In the conception of the scheme and its regulations it is clear there was no appreciation of the difficulties in the situation created toy rising overseas markets affecting practically every imported commodity or raw materials for industry,” he said. “No single tribunal could posisibly handle such a flood of applications, which is likely to continue during the war. It was not realised that prices of many local commodities must fluctuate according to seasonal conditions.” There were other reasons for higher costs. The increase in the postal rates and higher costs of all containers and wrapping paper had often to be taken into consideration. It was suggested that an infinitely better system would be to leave it to those who considered the price of any particular commodity was unjust to make representations in the proper quarter. During the Great War it was laid down by courts In both Britain and New Zealand that a reasonable basis on which prices should be fixed was the replacement cost. Increased Costs The attention of the Government to the effect of the regulations has been drawn by the Auckland Chamber of Commerce. In directing attention to clauses 5 and 10 of the regulations, which aim at fixing prices, the chamber has pointed out to the Minister concerned that experience between 1914 and 1918 showed that such provision was impracticable. Quite a number of goods which could be sold at the beginning of September at a certain price were now arriving from abroad at higher prices, stated the chamber. This was the result of various increased costs, such as factory costs abroad, exchange, freights and insurance. This made it quite impracticable for a merchant to trade under former conditions except at a loss. Clauses 5 and 10 should be modified so as to permit of replacement cost, rather than prices of September 1, 1939, being the basic prices.