PRICE OF ORANGES

Manawatu Standard, Volume LVI, Issue 308, 26 November 1936, Page 10

PRICE OF ORANGES

GOVERNMENT'S DECISION. AGREEMENT WITH MERCHANTS. Per Press Association. WELLINGTON, Nov. 25. A deputation representing the fruit retailers of the Dominion waited upon Hon. D. G. Sullivan (Minister of Industries and Commerce) and Hon. M. Fagan (acting-Minister of Customs), today, in respect of the shortage of oranges and the prices being charged for the recent shipment of American oranges. The deputation was introduced by Mr R. McKeen, M.P., and included Messrs A. Osborne, M.P. (representing the Auckland retailors), Menzics (representing the Wellington retailers), and F. Capes and _R. Sullivan (representing the Christchurch retailers). Mr Menzies expressed the deep concern of .retailers at the high prices at auction for Jamaican oranges. Before the arrival of that shipment, which comprised 8000 cases, the market - was quite bare and the auction of the fruit at Wellington, Auckland, Christchurch and Dunedin resulted in keen competition amongst retailers, who had to pay as high as 66s per case in Wellington. These prices were ridiculous, particularly at this season, and meant that the fruit would have to be retailed at 5d or 6d each, which was prohibitive. The deputation expressed the opinion that the high prices were due soley to the short supply and felt that the position could be met by increased importations. It was urged that additional permits should bo granted for the importation of oranges from Australia. They considered that the embargo on Australian fruit should be lifted to the extent of allowing sufficient importations to meet the present acute sliortagM r Sullivan stated that he and his colleagues were most anxious to see that the public were able to secure ample supplies of fruit at reasonable prices. As soon as the , position had been brought before his notice he, in conjunction with the Minister ot Customs and the officers of their respective departments, had taken immediate steps to investigate the position and devise a remedy. Until a late hour the previous night they had been in telephonic communication with rruit brokors and merchants. After considering the position a decision had been made to recommend Cabinet to agree to the .fixation of Wholesale and retail prices of oranges.- . , A “gentlemen s > agreement had been made with the fruit merchants whereby a rebate of. the difference between the fixed price and the puce paid by the retailers wouid be made by the merchants and an . Older i 11-Council was being issued fixing the wholesale price at 32s 6d per casei and also fixing the retail prices in Wellington, Christchurch and Dunedin at prices ranging from 4 for a shilling to a shilling according to the size. Unfortunately, this arrangement could not apply to Auckland with iespect to the present shipment because the fruit had already, been bought and paid for by the retailers and a great deal of it had gone into actual consumption. However, after consideration of the position following the arrival of the next shipment a new Ojder-m-Council would be issued covering whole of the Dominion. This would, he felt, meet the present acute situation and would be a. indication to retmlms and to the public generally that the Government had the matter in hand and realised the necessity of protecting them against prices that were nothing short of ridiculous. EMBARGO COMPLICATIONS. So far as future supplies were concerned the lifting of the embargo on Australian fruit was not a simple matter as some might imagine. The tiade position between Australia and New Zealand had a great deal more to it than the question or oranges and potatoes The trade balance between the two Dominions was very much in Australia’s favour, and tiade ielationships were not a matter that could he taclded piecemeal by deal ing with individual items. The matter could only be dealt with by negotiations between the tuo Govern ments and it was not desirable to enter into inter-Dominion trade discussions until Mr Nash had concluded his negotiations with Great Britain. It had therefore, been impossible to enter into a general discussion on trade matters with Australia, but he knew, from unofficial talks he had had with responsible Australian representatives, that Australia realised that New Zealand had a strong case. The Minister quoted figures to show that the importation of oranges was receiving every consideration and pointed out that taking into consideration the oranges that had already arrived and the commitments up to the end of the year, no fewer than .3051)00 eases would have been imported in 193 b This was the highest figure for at least seven years, and the average importations over the past seven years had been only 265 000 cases per annum. However, the (government did realise the seriousness of the position and recognised that there was a definite need for additional supplies. Mr Fagan said he felt sure the arrangements made by Mr Sullivan would give great satisfaction to the trade and to the public. . Mr McKeen thanked the Ministers for their prompt action and the representatives of the Auckland and Chiistchurcli retailers also expressed then gratitude to the Minister for his,action. CONCERN AT AUCKLAND. EFFECTS OF RESTRICTION. Per Press Association. AUCKLAND Nov. 25. Astonishment at the statement of the Prime Minister that he was unaware of any serious orange shortage was 1 expressed by Mr S Coleman secretary of the Auckland Retail Fruiterers’ Association, in a telephone interview with a Christchurch newspaper On Tuesday the Prime Minister stated

that if action were necessary to relieve any shortage it would be taken. “It appears to me that the Government has begun to see the disastrous effects of the continued restrictions on the free importation of Australian fruit, and with growing public resentment at the ever-increasing price of the very limited supplies available is endeavouring to plead ignorance,” said Mr Coleman. “Lot me remind Mr Savage that at Wellington last February he and the Minister of Industries and Commerce (Hon. D. G. Sullivan) received a deputation of New Zealand fruiterers. The deputation asked the Government to lift the embargo and establish a system of regular imports that would ensure fruit at a reasonable price to the public and a reasonable return for those engaged in the distribution. The Prime Minister received the deputation sympathetically and undertook to investigate the whole position.” Nothing had been done, and he understood the Government did not wish to take action until the Fruit Inouiry Commission had reported. Mr Sullivan had been written to repeatedly and asked that extra importations should be allowed pending the commission’s report, as the position was becoming intolerable. Mr A. G. Osborne, M.P.., and a former fruiterer had done his best, but apparently the Government was adamant. Mr Osborne wrote to Mr Coleman on October 19 saying that Mr Sullivan realised the difficulties, but until the House rose he would have practically no time to devote to the problem. ... “Unless immediate action is taken, I expect oranges to be 6d each at Christmas and New Yeai,” Mr Coleman added. “On Tuesday in Auckland city markets Norfolk Island oranges made 34s a case, against 12s to 14s last year. Jamaican oranges realised up to 48s a case, Australian 435, and Island 30s 6d. These prices are two or three times greater than necessary, and are a standing indictment of the blessings of Government interference with trade.”

DUNEDIN DISSATISFIED

Per Press Association. DUNEDIN, Nov. 26. Mr Newall, the secretary of the Retail Fruiterers’ stated this morning that his association was dissatisfied with the Government’s attempt to solve the orange problem, which had failed to eliminate the cause. The indications were that there would not be sufficient oranges before Christmas to provide a single one for each one of the population, and if the Government, by any means except increasing supplies, could provide oranges it made the parable of the loaves and fishes insignificant. If permission were granted, his association could 1 ail'd 5000 cases at half the price now fixed for Jamaican oranges without prejudicing tlie future Commonwealth negotiations. ORANGES BY THE TON. WASTING IN AUSTRALIA. “It was just a shame to see ,the way in which oranges are practically given away over the other side. In Melbourne you could buy the best oranges, large, luscious fruit, at Is a dozen, while m the country, particularly in the citrus fruit districts, they were to be had at 24 a shilling. This comment on New Zealand’s embargo against the importation of Australian oranges was made yesterday by Mr H. G. Frecldington, of Feilding, who has just returned from a holiday in Victoria and New South Wales. “There were oranges by the ton, and we lived on them for days on end, Mr Frecklington added. “I cannot understand the logic of the authorities in New Zealand in maintaining the stupid embargo on the importation, of the fruit into New Zealand. Knowing the position that existed in New. Zealand, and seeing the huge quantity of fruit available and practically being given awav, the idea occurred of chartering a ship and bringing a few tons t‘6 New Zealand. The difficulty would have been, of course, to get the ship past the embargo, hut it is a fact that there are tons and tons of oranges available across the Tasman simply going to waste because the market is glutted.”