SUPPLIES OF TEA

New Zealand Herald, Volume LXXVI, Issue 23491, 31 October 1939, Page 9

SUPPLIES OF TEA

REPLY TO MINISTER EFFECT OF RESTRICTIONS ENFORCING LOWER QUALITY "It remains for. the Government to lift, the restrictions on tea, or else to burden the public with n very greatlyincreased cost and irregular supplies," said Mr. P. H. Bushell, \chairman of Bnshells. Limited, who passed through Auckland by the Mariposa yesterday on his return to Sydney after a world trip.

Commenting on the statement made in the week-end by the Minister of Supply, the Hon. D. G. Sullivan, Mr. Bushell stated that the Government evidently was not aware of the facts when it declared that unrestricted imports of tea during this year would not Jiave enabled importers to have tided over the temporary stoppage of auctions and shortage of supplies in Ceylon.

Inadequate. Remittances "The Government also appears to be unaware that it takes about two months for tea to reach New Zealand from the time restrictions are released and more tea is allowed to be ordered," continued Mr. Bushell. "The Government is not permitting half enough remittances abroad to pay for tea ordered since August, or for the remainder of tho year. "How does the Government expect importers to obtain sufficient supplies when remittance abroad is not permitted and tea has to be paid for in Ceylon within 24 hours after purchase? Necessary Commodity "The British and Australian Governments classify tea as a necessary commodity for the people, yet the New Zealand Government restricts imports of tea and has taken power to control the distribution, which will enforce a lower standard of quality on the people. Tea is now being distributed below the, cost of future supplies. No Government policy of distribution can reduce this cost, but must considerably increase it. "The Government has reduced imports of tea because of financial stringency," added Mr. Bushell. "Shortage of supply means a higher price to the consumer. A lower standard also is being forced on the people by restricting the total money value of the tea imported. "Only in countries like Germany, Russia and Italy are the people rationed in their tea supply," concluded Mr. Bushell. "Surely the New Zealand Government is not in such dire financial straits as these countries. Surely the people need not be restricted in tea, when it is freely obtainable in Great Britain, which is at war." DEFINITE SHORTAGE RISE IN PRICE PREDICTED [llV TELEGRAPH —OWN CORRESPONDENT] "WELLINGTON, Monday

Tea is- likely to increase in price by at least 8d a pound, according to information received in Wellington to-day from merchants. They state that they are definitely short of tea. There was no question of holding tea in anticipation of a rise. The price in Colombo had risen 8d to 9d a pound and import licences were being issued only for the same value as the last period. The result was that less could be bought and there would probably be a shortage of 3.000,000 t0.4.000j000 pounds. "Referring to the statement by the Minister of Supply, the Hon. D. G. Sullivan, that there were sufficient supplies, merchants asked where these were. They had not got them. If there was no shortage, why were tea packers selling only in single case lots, where formerly they would sell in 20 case orders?