WARNING ISSUED

Manawatu Standard, Volume LIX, Issue 45, 21 January 1939, Page 9

WARNING ISSUED

NO PROFITEERING.

IMPORT CONTROL SEQUEL.

MINISTER SPEAKS PLAINLY

Per Press Association. CHRISTCHURCH, Jan. 21

A warning that profiteering on account of the import regulations would not be tolerated was given by the Minister of Industries and Commerce (Hon. D. 0. Sullivan), to-day.

“My attention has been drawn during the past few days to statements which have appeared in the papers regarding increases in price,” said Mr Sullivan. “I refer particularly to a news item originating in Auckland concerning grocery lines allegedly affected by the import restrictions and in respect ot which advances in prices have been made by wholesale suppliers and by retail shops. Some of the lines affected were matches, Australian canned fruit salad, canned apricots, canned vegetables, imported biscuits, canned asparagus, English meat pastes and imported sauce. It was stated that the increases in these lines had been brought about through some ot the wholesalers advancing their prices for the remaining stocks in expectation of a coming shortage. “I also refer particularly to a statement which appeared in the Dominion on January 20 to the effect that some >\ ellington wholesale grocery houses had advanced their prices by 5 per cent, on practically all tinned foodstuffs, sardines, salmon and herrings being among the lines so affected 'The reason given was a shortage of supplies because of the import- restrictions.

“There is, in my opinion, no justification whatever for such an increase in prices, and where such increases have taken place allegedly on the ground of a shortage resulting from import control such increases amount to exploitation of the public. I wish to make it clear that the Government will not countenance such exploitation, and wherever it has taken place the Government will not hesitate- to take immediate action, either under the Board of Trade Act or the Prevention of Profiteering Act.”

Mr Sullivan said officers of the Department of Industries and Commerce were at present investigating increases said to have already taken place, and wherever wholesalers and retailers had advanced their prices for the reason given they would be well advised to reduce their prices again. Through the department a- very close watch M ould be kept on prices, and the public could be well assured that the Government would not permit either wholesalers or retailers or anyone else to take advantage of the Government’s import control |K>licv to exploit them in any shape or form. Heavy penalties were prescribed by the Board of Trade Act and the Prevention of Profiteering Act, and the Government would not hesitate to take action in any case involving breaches of these Acts.