Trice Tribunal On Wrong Foundations'

Northern Advocate, 10 March 1948, Page 4

Trice Tribunal On Wrong Foundations'

WELLINGTON, Wed. (P.A.) The operations of the Price Tribunal appeared to be based on the wrong foundations. said Mr D. A. Ewen. president of the New Zealand Wholesale Soft Goods Federation in his address to the annual meeting of the federation. Mr Ewen said the council of the federation had tried to be cooperative in its dealings with the tribunal, and had been received in a courteous spirit, but the tribunal’s methods were having an undesirable effect.

It appeared that efforts were being directed in a large measure to a reduction of the total profits made, by any one concern, rather than by scientific application of a percentage of profit to various classes of goods.

This had resulted in too low a ratio of profit being allowed in certain departments, and in the event of any falling away in turnover a loss would immediately result.

The present method of marketing was quite definitely a direct cause of overtrading by many concerns, while the practice of placing ceiling prices on various articles was undoubtedly lowering the quality of goods produced locally, and of goods which were imported. It would appear that little or no cognisance was taken of values, and the idea of a mark-up on costs governed everything. The wisdom of this was very seriously open to Question