CEILING PRICES OPPOSED BY N.Z. GARMENT-MAKERS

Gisborne Herald, Volume LXXVII, Issue 23218, 1 April 1950, Page 6

CEILING PRICES OPPOSED BY N.Z. GARMENT-MAKERS

(P.A. ) WELLINGTON. March 31. “There has been a marked improvement and a wider field of choice in materials from overseas supplying countries. particularly the United Kingdom,” said the president of the New Zealand Garment-Manfacturers’ Federation, Mr. J. Abel, surveying the position of the industry when opening the federation’s annual conference in Wellington this week.

With the improvement in supply, said Mr. Abel, manufacturers became more discriminating in their buying and were thus able to offer their customers better value.

Discussing price control Mr. Abel said that since the beginning of 1945 tiie average award wages in the garment industry had been increased by about 43 per cent, and numerous increases in other awards had been reflected in the rising costs of many requirements of the industry. "The federation maintained strong opposition to the Price Tribunal’s system of ceiling prices,” said Mr. Abel. “Not only do they fail to take account of quality, fashion and design, but they also react repressively on the production of many lines and force a lowering of the best standards of which our industry is capable. “Our organisation should continue to press strongly for the removal of these ceiling prices and until price control is removed altogether prices should be based on the full proven costs for each article.”

Mr. Abel said that if price control were abolished on many clothing items the interests of consumers would be safeguarded by competition. If manufacturers were allowed a greater degree of flexibility in their general price structure he confidently prediefed that many everyday lines would be reduced in price, because the manufacturers would have the opportunity to offset this by a slightly higher margin on the more exclusive of fashionable goods. The conference expressed approval of the president's view on ceiling prices in a resolution stating that their retention was hampering full production. It was also decided to reaffirm the federation’s opinion that price control should be removed on all lines in sufficient supply.