COST OF CIGARETTES

Northern Advocate, 15 January 1934, Page 9

COST OF CIGARETTES

RETAIL PRICE GOES UP. (Special- to “Northern Advocate,”) AUCKLAND, This Day. An increase in the wholesale price has been made by the manufacturers of one brand of New Zealand-made cigarettes, the retail price of which in Auckland has -consequently had to be increased by one penny to 7d for a packet of. ten. Packets of twelve cigarettes of another New Zealand brand previously retailed at 7d are now selling at the increased price of 8-£d.

fn announcing the increase in price the manufacturers of one New Zealand article stated that it was not possible to continue marketing the cigarettes at ten for (id, so long- as the Government- taxation exceeded 3d a packet of ten. When the brand was first marketed it was hoped that there would be an early reduction In cigarette taxation, but tariff revision had been again postponed. In the final days of last session legislation was passed giving manufacturers authority to fix and maintain the prices of tobacco, including cigars and cigarettes, by excluding these goods from the schedule of the Commercial Trusts Act, 1910.

The Industries and Commerce Committee of the House, which had considered representations on the subject, had suggested the exclusion of these goods provided manufacturers, wholesalers and retailers would enter into an agreement to safeguard consumers. The view of the committee was that, if tobacco were removed from the schedule, it would pave the Avay for negotiations for an agreement among the parties concerned. As the law stood it was stated to be impossible for manufacturers to fix and maintain the re-sale prices of their goods. t Although the principle of the new legislation was not attractive to them, the Leader of the Opposition, Mr M. J. Savage, stated at the time the amendment was under review, that there had been evidence that the inclusion of tobacco in the Commercial Trusts Act schedule had not protected the retailers against price-cutting. The amendment would throw the onus on all the interests to arrange schedules protecting all concerned, and ho assumed that, if this practice were abused, the Government would take action.

The reply of the Minister of Finance, the lit, Hon. J, G. Goates, was that the position had been correctly stated. If under the now conditions prices were raised to an unfair point the Government would invoice the Board of Trade Act to see that the people were not exploited. , It is now reported from a southern Source that Manufacturers are still considering the question of prices in order to arrive at a figure which will give a fair margin to all sections of retailers. There is a likelihood of a conference between manufacturers and retailers toward, the end of this month, and until then it is not considered likely that prices to the public will be stabilised.