PRICE CONTROL POLICY

Otago Daily Times, Issue 25364, 23 October 1943, Page 6

PRICE CONTROL POLICY

DENIAL OF DISCRIMINATION REPLY TO MANUFACTURERS’ COMPLAINT (P.A.) WELLINGTON, Oct. 22. Referring to remarks by Mr C. V. Smith, president of the New Zealand Manufacturers’ Federation, to the effect that the policy of the Price Tribunal had been inequitable in regard to manufacturers, compared with retailers and other distributors, the tribunal, in a statement to-day, said that its policy was exactly the same for manufacturers and all other traders—namely, that only the amount of the additional costs incurred since the outbreak of the war could be added, unless hardship was shown by the applicant. Such permission was not given, however, if the business as a whole was doing so well that all or part of such additional costs should be carried.

In the drapery trade a few months ago, the tribunal added, a number of lines which hitherto tradesmen had considered to be outside the scope of the regulations were brought under control. Such an enormous number of applications was received by the tribunal that some short cut had to be adopted, and percentage authorisations were, and still are, being granted to deal with the additional costs incurred, based on average retail prices, but this was not a departure from the policy of the unit margin. The margins were expressed as percentages merely for the convenience of calculation, and were so calculated as to give retailers no more than the pre-war unit margin of profit. '