MORE ORANGES

New Zealand Herald, Volume LXXI, Issue 21910, 20 September 1934, Page 12

MORE ORANGES

FURTHER 50,000 CASES IMPORTATIONS IN OCTOBER RETAIL PRICES OF FRUIT "NO UNREASONABLE PROFITS" [BY TELEGRAPH —SPECIAL REPORTERj WELLINGTON, Wednesday Pending the hoped-for conclusion of the negotiations with the Australian Government, arrangements have been made for a further 50,000 cases of oranges from South Australia to arrive in the Dominion during October. Discussing this announcement tonight, the Minister of Customs, Mr. Coates, said that the subject of orange supplies and orange prices had received much publicity lately and that direct representations had been made to him by retailers. The relative prices at which this fruit was sold in Australian and New Zealand cities respectively were used as an argument to show that New Zealand consumers were hardly treated

The general methods of retail fruit trading and of fruit supply in the two countries were well known. In Australian cities a street vendor, with no rent or shop expenses to pay, did a big share of the business, whereas in New Zealand the immediate distributing agency was the fruit shop. Hence, a larger profit on the retail turnover was reasonable and necessary. Then again, oranges could be a quickly perishable product and some wastage was unavoidable. The retailer needed to guard against this. >, Excessive Profit Alleged '

"The representations made to me," said Mr. Coates, "indicate that the idea prevails that too much profit is being made by shippers and in the wholesale turnover, and that this is largely due to the distribution of imported supplies being in the hands of a representative of the Australian producers. As to this, inquiries indicate that, having regard to all circumstances, no unreasonable profits are being made, and that the producers are receiving only about 4s a bushel net on the average. "One factor in the trouble, possibly not an important one, appears to lie in the fact that individual traders, both wholesalers and retailers, find themselves under the existing system deprived of a free run in obtaining supplies, either by importation of their own account or by purchases of. imported fruit in any quantity they desire. Ho Tratle Interference "The policy of the New Zealand Government has been to arrange with the Commonwealth Government for reasonable quantitative importations of oranges from month to month, and not ta attempt to control the internal trade of the Dominion by allocating, quantities to wholesalers and retailers or by fixing prices. While refraining from such interference with trade, however, the general conduct of business has been kept under observation by the Government, and the information desired has always been readily supplied." The Minister referred to a complaint that all imported Australian oranges were controlled by the representative of one exporting agency to the disadvantage of retailers. He said it must be realised that in the present stage of the negotiations with Australia, only South Australia could supply oranges to our markets. The New Zealand Government could not dictate to. Australia what source in that State or by whom the oranges should be shipped, neither could it dictate as to the sellers here on behalf of the shippers. South Australian growers had entrusted their I New Zealand business to an accredited representative, who was expected to act fairly and equitably, and the facts and figures supplied indicated that he was doing his best in this respect. "Now that the unavoidable delay caused by the Federal elections in Australia can be regarded as nearing its end," added Mr. Coates, "negotiations will be resumed as soon as possible in the hope that the questions at issue can be quickly settled on a mutually satisfactory basis. The latest" discussions which took place opened a way to this. Unfortunate Disturbance "It is unfortunate that any disturbance of normal trade relations between two closely-linked communities should have been brought about by each Government having to do its best to meet its responsibilities in regard to marketing necessities for 6ome classes of primary products.

"As a matter of economic necessity, New Zealand has to give most serious consideration to outside markets for primary produce, including fruit and vegetables, mainly elsewhere, but within reason in Australia also, and this is the one and only basis upon which our discussions with Australia are being conducted. "In considering questions relating to supplies of this fruit, ojur own internal production must not be ignored. New Zealand-grown sweet oranges are not yet available in marketable quantities, but it has been shown that suitable varieties can be grown successfully where climatic conditions are favourable. Other oranges are gradually meeting with wider distribution and sale, and one variety, I am informed, is becoming popular as an acceptable and, similarly, a healthful substitute fof the more expensive imported grapefruit."