PRICES OF TOBACCO

New Zealand Herald, Volume LXXI, Issue 21757, 23 March 1934, Page 11

PRICES OF TOBACCO

PLAN FOR UNIFORM RATES DELAY IN NEGOTIATIONS TARIFF REVISION EXPECTED The negotiations which have been in progress for several months to fix uniform retail prices for tobacco and cigarettes have not proved entirely successful, and for the present, at any rate, the scheme is^likely to remain in abeyance. Following conferences in Wellington ih February of retail and manufacturing interests, proposals were made for a schedule of standardised prices with a view to eliminating cut rates, which have proved disastrous to certain retailers. A final conference was to take place in Wellington at the end of last week, but the completion of the negotiations in certain directions proved more difficult than was expected. It is stated that one important reason for postponing action at present is the fact that the tariff revision is expected in the course of a few months. This will possibly necessitate a change in any arrangements made now, and it is considered such action would not be in the best interests of either the trade or the public. Another point raised is the effects merchants have suffered from the evil of pricecutting. In order to assist retailers to maintain competitive prices they have had to make concessions, and it is considered that, in the light of the change caused by removing cigarettes and tobacco from the Commercial Trusts Act, the terms to merchants should also be reviewed. In the meantime, opportunity is being taken to investigate the position abroad. It is stated that, although England has no Commercial Trusts Act, and although her trade, especially in the retail section, has had numerous strong organisations which have endeavoured to deal with price-cut-ting, it was only at the beginning of this year that manufacturers, wholesalers and retailers arranged a comprehensive scheme in an endeavour to eliminate cut rates. Similar efforts are being made in South Africa, and it is felt that any delay arising out of efforts to secure first-hand knowledge of any methods that have proved satisfactory, either there or in England, will be justified by- the production of a sounder and more complete scheme for New Zealand.