FERTILISER SALES

New Zealand Herald, Volume LXXV, Issue 22975, 1 March 1938, Page 16

FERTILISER SALES

FIXATION OF PRICES SUPERPHOSPHATE RATES MINISTER'S ANNOUNCEMENT Details of the new regulations fixing the selling price of superphosphate under the Board of Trade Act, which were published on Saturday, wero announced yesterday by the Minister of Industries and Commerce, the Hon. D. G. Sullivan. No alteration was made in the retail price to persons purchasing superphosphate for their own use, tho most important difference being that dairy companies and formers' organisations are now placed on the same basis an merchants. The cost of production of superphosphate had been thoroughly investigated with a view to ascertaining whether any reduction could be made, said tho Minister. Unfortunately, owing to disturbed work conditions, the price of sulphur lias increased, and there have been general advances in shipping freights. These not only affect the landed cost of sulphur, but also the landed cost of phosphate rock from Nauru and Ocean Islands. A reduction in tho cost of phosphate rock was announced last year by the British Phosphate Commissioners, but this was almost entirely ncgoti\od bv the increased cost of freight. • Position Clarified "With the issue of the now regulations, which revoke those of 1036, the opportunity was taken to tighten up tho price fixation clause's by clarifying the position in regard to certain practices which have arisen in the past," stated the Minister. "It is now clearly stated that it is an infringement of tho regulations to offer or receive any discount, rebate or dividend in connection with the fixed price of superphosphate. Tho only exceptions are in the cases of dairy companies or farmers' organisations trading on a co-operative basis, where it is perniissablo to make payments to shareholders or members by way of bonus or dividend, computed by reference to the general trading profits not arising exclusively from sales of superphosphate. "It is also clearly stated that the regulations for the fixed price apply only to sales for delivery direct from tho manufacturers' works to the farmers' nearest port or station. They do not apply to sales ex store or to sales quoted for delivery to the farmers' property. Booking Pees "The regulations also specify that the fixed prices are for cash or for payment on the 20th day of the month following the delivery of the goods, but it is perniissablo for a manufacturer or merchant to acid a booking fee to the invoiced price of goods, provided that if payment is made within a specified period up to the 20th day of the following month, the booking fee must be rebated. "1 trust that dairy companies, merchants and the farming community generally will co-operate with the manufacturers with the object of facilitating prompt deliveries," concluded the Minister. "Where farmers have already given orders for their supplies to merchants, I trust that they will honour these contracts. To change the channel of the supply of orders placed at this stage would cause considerable disloca- | tion both to merchants and to manufacturers, as pre-arranged deliveries I would no doubl; be upset."