REDUCTION IN PRICES

Gisborne Herald, Volume LXXV, Issue 22586, 15 March 1948, Page 5

REDUCTION IN PRICES

REACTION OF INDUSTRY REPLY TO GOVERNMENT (11 15 a.m.) LONDON, March 14. The national standing committee on wholesale distribution in a memorandum replying to the Government’s request to reduce prices and profits states that wholesalers’ net profits are so small in proportion to consumers’ prices that the contribution wholesalers can make is almost negligible.’’ The mermorandum, neverthless, contains definite offers from some sections of the wholesale trade to reduce and “freeze” margins. The memorandum suggests reductions in direct and indirect taxation which has tended to increase prices and reduce the real value of wages, and contends that any attempt to reduce prices, apart from the purchase tax, must begin at some stage before wholesale distribution. This is the second big trade group to reply to the Government’s plan announced on February 12. The Federation of British Industries, the Association of British Chambers of Commerce and the National Union of Manufacturers in a joint reply on Friday recommended increased productivity, the reduction and stabilisation of wages and the limitation of dividends.