PRICE-FIXING

New Zealand Herald, Volume LXXVI, Issue 23276, 20 February 1939, Page 9

PRICE-FIXING

NEW SOUTH WALES PLAN NEW ZEALAND EXAMPLE EMBARGO ON POTATOES DEMAND FOR REMOVAL By Telegraph—Press Association —Copyright (Received February 19, 5.5 p.m.) SYDNEY. Feb. 19 The New South Wales Cabinet is drafting legislation for the creation of a price-fixing tribunal to control excessive prices of commodities, says the Sunday Sun. This is to be based upon the Auditor-General's report on his inquiry into price-fixing machinery in New Zealand.

The article then takes up the case for the removal of the embargo on New Zealand potatoes, stating that if this is not done Tasmanian potatoes are likely to go to £4O a ton in the winter. It is added that Sydney and Melbourne merchants have arranged for considerable purchases of New Zealand potatoes, subject to the suspension of the ban on their importation to Australia.

The New South Wales AuditorGeneral, Mr. .John Spence, last year visited New Zealand to inquire into the methods of price-fixing adopted here, and it was reported in November that on his advice the State Cabinet had rejected the Cabinet system of price-fixing adopted here. Mr. Spence said the New Zealand scheme had involved considerable expense in administration, and the exercise of inquisitorial powers of investigation, which although accepted by the commercial community in a spirit of resignation, were in principle strongly resented. To this the Minister of Industries and Commerce, the Hon. D. G. Sullivan, replied that it would seem that Mr. Spence did not make the best use of his opportunity while in New Zealand. as he must have failed to make contact with the commercial people concerned with the price-fixmg schemes. In the course of his report, which was tabled later, Mr. Spence said, "The impression I formed is''that the control of prices and industry in New Zealand can create many difficulties for a Government, and that the real test of its effectiveness and its value is still to come.''

A merchant closely in touch with the potato market here says that as far as is known there have been no sales made to Australia subject to the lifting of the ban. He thought it very unlikely that any such sales had been made, as the lifting of the ban_ would mean an immediate increase in the local price. South Island potatoes would not be ready for export until about the middle of April, and at present they could come only from the North Island, chiefly from Rangitikei and Ohakune. Merchants here would like to see the embargo lifted, as there was generally a surplus in New Zealand, and they could be landed at a very reasonable rate in Sydney. CANADIAN WHEAT NEW MARKETING POLICY BONUS FOR THE FARMERS OTTAWA, Feb. 17 In the House of Commons to-day the Minister of Agriculture, Mr. J. G. Gardiner, announced an entirely new wheat marketing policy. The custom of "pegging" prices would be abolished and assistance would be granted to farmers instead through an acreage bonus. Condemning a fixed price, the Minister stated that the grower with a small crop got little, and with no crop nothing at all, yet aid for this year's crop had cost the Canadian public 48,000,000 dollars. The new plan would encourage home-building and maintenance rather than increased production. The Government's intention, Mr. Gardiner said, was to introduce legislation calling for co-operative marketing of all agricultural products. Auxiliary legislation would afford facilities to meet emergencies through world market developments.

Winnipeg grain leaders are cautious regarding the new plan. The Alberta Wheat Pool states that, regardless of new legislation, unless world prices improve, the Canadian West faces a disastrous year. No farmers anywhere can produce profitably at the present world prices. A "pegged" price was a substantial prop, the absence of which would be severely felt. Mr. Frank Eliason, president of the United Farmers of Canada, asserted that present prices were no benefit to farmers, as the bonus was promptly absorbed by the farmers' creditors.