TINNED FISH

Otago Daily Times, Issue 23883, 10 August 1939, Page 9

TINNED FISH

PRICE TO CONSUMERS SCOPE FOR REDUCTION FINDING OF TRIBUNAL (From Our Parliamentary Reporter) WELLINGTON, Aug. 9. The View that so long as supplies of salmon, herrings, and sardines remain available there should be some scope for a reduction in the price the public is being charged for these foodstuffs is expressed by the Price Investigation Tribunal as one of its findings following a judicial inquiry. This announcement was made to-night by the Minister of Industries and Commerce (Mr D. G. Sullivan). The Minister said that an inquiry had been held into the prices and supplies of tinned fish, as it had recently been stated that, owing to a shortage of supplies, the prices of these commodities had been raised. In addition to considering written submissions, the tribunal had called witnesses from the New Zealand Merchants' Federation, representatives of large firms of family grocers, a representative of chain stores, and a sliburban grocer. Particulars were also obtained of the stocks of salmon, herrings, and sardines held by merchants and retailers, and extensive evidence had been secured of the wholesale and retail costs in 1938 and 1939 respectively.

Factors Causing Price Rise

The main findings of the tribunal, the Minister said, were that the present stocks of salmon were sufficient to last until the new season's supplies were available in November and. December of this year, that an abnormal demand had been caused by an anticipated shortage, which had not in fact occurred, and that the anticipated shortage, together with uncertainty as to supplies from November 1939, onwards, and the talk of higher replacement cost had led to the increase in price to the public. These circumstances had in some cases, it was found, enabled merchants to obtain a larger profit than they would otherwise have obtained. Although the supplies of herrings and sardines had been reduced, the Minister said, there was no evidence of an" actual shortage in these classes of tinned fish, but uncertainty as to future supplies had tended to increase the prices of herrings and sardines also, and, as in the case of salmon, had enabled, merchants in some cases to obtain a wider margin of profit than otherwise. Watch on Position " Provided that supplies of salmon, herrings and sardines remain available there should be scope for some reduction in the price to the public," states another finding. "In view of the approach of the Centennial Exhibition and other celebrations, it may be anticipated that there will be a larger demand than.usual for this commodity, and the tribunal will watch the position closely to ensure that the available supplies are sold at the lowest possible price after providing a fair and reasonable rate of profit to wholesalers and retailers."