GROCERY PRICES

New Zealand Herald, Volume LXXIV, Issue 22725, 11 May 1937, Page 12

GROCERY PRICES

HOSPITAL CONTKACT BOARD REFUSES REVISION TRADESMEN LOSING MONEY [BY TELEGRAPH —OWN CORRESPONDENT] WHANGAREI. Monday Considerable discussion took place at to-day's meeting of the Whangarei Hospital Board regarding the application of a local grocery firm, which requested the revision of its contract to supply goods to the ..hospital. The board refused the request. "No one could have foreseen the extent to which prices have risen through various causes," stated the application, which illustrated the following examples:—Sugar, per 701b.: Wholesale price when contract was tendered for 13s Bd, present cost price, 17s Bd, contract price, 14s: oatmeal, 3s lid for 251b., 6s 8d and 4s 2d; rice, 12s lOd per cwt., 16s 6d and 13s 6cl; fine salt, 4s 6d, 6s 3d, and 4s Bd. Other items similarly situated were sago, flour, golden syrup, prunes, raisins, starch and blue. Committee's Recommendations The secretary, Mr. J.' H. Marwick, reported that the Houso Committee had recommended the refusal of the request. The chairman, Mr. A. S. Mackay, said the whole principle of contracting was involved in the request. "No one has ever heard of a contractor asking" the board to reduce his contract price because he was making abnormal profits owing to reduced prices, and now that costs are higher we will be establishing a dangerous precedent if we agree to vary a contract of this description," he remarked. Mr. F. Elliott: I do not agree, as I think the circumstances are exceptional. The applicant is only asking that he should receive the cost price of the various articles, and he does not want any profit.

IVIr. Elliott moved that the request should be granted. Effect of Spanish War

Mrs. J. Donaldson moved an amendment that the House Committee's recommendation should be adopted.

Mr. J. G. Barclay, M.P., supported the motion. Ho said that although the tenders were called last September, when most of the industrial legislation had been passed, the abnormal war expenditure had since affected some of the important articles included in the request.

The Chairman: The grocer knew what was coming. Other tenderers hail to make provision for increased costs. Continuing, the chairman said ho knew the contract butcher was losing money on his contract, and other tradesmen were in a similar position. If the board granted this request it must be prepared to vary all the other contracts where increased costs have played a part. The amendment was carried.