RUMOURS DENIED

New Zealand Herald, Volume LXXIV, Issue 22864, 20 October 1937, Page 17

RUMOURS DENIED

CHAIN STORES NO STATE COMPETITION MR. SULLIVAN'S ASSURANCE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday A definite denial of tlie rumour that the Government Avas considering entering the chain store business with the idea of keeping retail prices down was given by the Minister of industries and Commerce, tlio Hon. D. G. Sullivan, during the debate on the Financial Statement in the House of Representatives to-night. The rumour was mentioned in the House during the debate last week by Mr. S. G. Smith (Opposition —New Plymouth). "I would like to relieve the mind of the member for New Plymouth," Mr. Sullivan said. "J can assure him that there lias never been any intention on my part nor on the part of the Government to take the action rumoured and establish Government chain stores in this country." A Committee's Recommendation The Minister added that Mr. Smith had referred to the report of the Industries and Commerce Committee on chain stores and had said that he had no doubt that those recommendations would bo given effect to. However, the recommendation of the committee was that if the chain stores became dangerously monopolistic the Government might have to exercise some control. The report showed that the chain stores were doing good work, hut if they did show signs of becoming a dangerous monopoly then the time would come for tlio Government to take jiction.

Mr. Sullivan also replied to references by Mr. H. G. Dickie (Opposition—Patea) to the control of chemists' shops. Mr. Dickie had stated that if the chemists did not put their own house in order the Government would take control of them. No Competition With Retailers That suggestion was groundless, said Mr. Sullivan. There was never any intention on the part of the Government to engage in the reselling business with chemical supplies. The proprietors of a certain line of chain stores operating overseas had been anxious to open up in New Zealand. Following conferences which were still taking place, the present Government would follow a line of action which would benefit the country and be a satisfactory compromise to the overseas company and the New Zealand chemists. Mr. Sullivan said the two rumours he had dealt with were "examples of the heated imagination of members of the Opposition." The retailers of the Dominion and the Government were getting on very well together. The legislation of the Labour Government had brought a new era of prosperity to the retailers, delations between tliem and the Government were very happy and the Government had no intention of entering into competition with them.

THE BOOT TRADE t PLIGHT OF MANUFACTURERS PROPER STATEMENT URGED [BT TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday The serious plight of the boot manufacturing industry in the Dominion was mentioned in the House of Representatives to-day, when Mr. S. G. Holland (Opposition Christchurch North) drew attention to the statement made last Thursday by the Minister of Labour, the Hon. H. T. Armstrong, that the industry was at the peak of production. Addressing a question on the point to the Minister of Industries and Commerce, the Hon. D. G. Sullivan, Mr. Holland asked whether the statement by Mr. Armstrong, and also the assertion that boot manufacturers were employing the highest number of hands in their history, were in accord with the information in the possession of the Minister.

Mr. Holland also asked whether Mr. Sullivan would make a "true public statement of the whole position," and have such a statement cabled to Australia, so that any wrong impression that might have been created by the Minister of Labour would be rectified, and the people of Australia "made aware of the correct position of the local manufacturers of footwear in New Zealand before next Saturday, on which date certain elections occur in Australia."