FORWARD SELLING

Gisborne Herald, Volume LXXII, Issue 21753, 30 June 1945, Page 6

FORWARD SELLING

ELECTRICAL SUPPLIES

ANTI-INFLATION PLAN P.B. BOARD - CAUTIOUS A proposal that the Poverty Bay Electric-Power Board should establish a forward-selling programme which would enable consumers to pay by instalments lor appliances to be supplied after the war was further considered by the board at its meeting yesterday. The scheme was not adopted, a majority of the board being against any innovations at present.

The proposal first came before the board in a letter from the district war loan committee, which recommended that the board should adopt a scheme similar to that in force in the Wanganui-Rankitikei power district The committee's suggestion was that the board might accept deposits and instalments by way of contributions to the war loan, and that the savings of consumers could later be converted into electrical appliances with a degree of priority in supply. The board had deferred discussion pending receipt of details of the Wan-ganui-Rankitikei district scheme. At to-day’s meeting the finance committee reported that it had considered the details of the proposal, ami had referred them to the board for discussion. The Wanganui board’s letter described the scheme as “hire-purchase in reverse,” the consumer nominating ’’u appliances on which he desired to pay instalments in advance. The national savings scheme enabled, the prospective purchaser to secure interest upon his lodgment, and by arrangement with the Government funds could be transferred from the national savings fund as it became possible to supply the nominated appliances. Obligation On One Side

The consumer was not bound to complete the purchase of any appliance, the letter explained, but the board accepted the obligation to supply if the consumer wished to complete. Commenting on the Wanganui board’s letter, the chairman, Mr. F. R. Ball, stated that it would mean a considerable amount of work for the board’s staff, and there was no obligation on the consumer compared with that on the board. Moreover, it was clear that the scheme needed canvassing, and the board had no staff for that purpose. Mr. J. H. Hall argued that the thrift element of the scheme should be of the utmost value, more especially in view of the present plenitude of money in the community and the dearth of sound values in consumer goods for its investment. The danger of inflation in the country was verypronounced, he said, and if the board could help in taking money out of circulation by this scheme, it would be performing a patriotic duty and also enable consumers to make provision for useful additions to their homes in the post-war years. Black-marketing, said Mr. Hail, was one of the alternatives open to present possessors of spending money, and it ■ was important that every responsible institution should do its part to check any such tendency. Business firms were looking ahead, h» added, and some were taking up forward selling as a business policy. He moved that the board adopt the principle. The chairman, in reply, pointed out that if the scheme went into operation, it would aggravate the present stringent conditions in 'he labour market. The country needed all its available man-power to carry on its services ,and he felt the board should not divert effort to a scheme which would not materially benefit anyone. The board should not /‘spoon-feed” the public too much; people were well able to look after, their own interests in such matters, he thought. From the business point of view the scheme was rather lopsided in that the board would be undertaking an obligation which the consumer would not he tied to. Mr. G. D. Muirhead seconded the motion.

Mr. F. Tolerton supported the view of the chairman, while' acknowledgin'' the worthy motives ' which piompted Mr. Hall’s advocacy of the scheme;

The motion was defeated, only the mover and seconder voting in its favour.