SALE OF STOCK

Otago Daily Times, Issue 27078, 12 May 1949, Page 8

SALE OF STOCK

AGENTS' COMMISSION UNIFORM RATES DESIRED CASE FOR ASSOCIATION PA WELLINGTON, May 11. Uniform maximum rates of commission on sales of fat and store stock, involving permission for an increase in most centres and no change in others, were proposed by the New Zealand Stock and Station Agents’ Association in an application to the Price Tribunal to-day. This application was taken at the conclusion of the tribunal’s hearing of the request by the price control division for a “ rationalisation ” of the commission charges,'involving decreases’in various centres and no change in others. On both applications the tribunal reserved its decision. Mr P. B. Cooke, K.C., for the association, said the association asked that the maximum uniform rates for fat and store stock at auctions and private (paddock) sales should be as follows: — North Island districts, other than Auckland and Taranaki: Auction sales, 3£ per cent., but no yard fees to be payable by vendors; private sales, 3i per cent. Auckland and Taranaki district rates are to remain as at present. South Island districts other, than Marlborough Sounds: Auction sales, 3 per cent, plus yard fees; private sales, 3 per cent. Marlborough Sounds district: Auction sales to be 4 per cent., plus yard fees, and private sales, 4 per cent.

The association proposed that these maximum rates should be fixed subject to the following provisions:— 1. The local association to be. entitled to increase immediately up to the above maximum uniform rates the existing rates for private sales of store sheep, store cattle, fat sheep and fat cattle in the Poverty Bay, Southern Hawke’s Bay, Wairoa and Nelson districts (these being the only four districts in which adoption of maximum uniform rates would involve both increases and decreases). 2. In all other districts the existing rates shall not be increased unless the increase is agreed to by the controlling body of Federated Farmers in the district concerned or, failing such agreement, is approved by the Price Tribunal.

Mr Cooke said the association submitted that the information already before the'tribunal disclosed a strong case for certain increases in the existing rates. It also submitted, however, that even if all the existing rates were brought up above the uniform maximum rates the total increases to be borne by the farming community would, after taking into. account reductions involved in the adoption of the above uniform maximum rates, be relatively small. Called by Mr Cooke, Mr G. D. Stewart, public accountant, said that if this application were granted, and the rates increased as proposed, the total increase for the whole of New Zealand would amount to about £66,000 a year. To Mr J. P. Lewin, assistant director of price control, Mr Stewart said that under these proposals the charges in the South Island would be increased to the extent of about a half per cent, in general and 1 per cent, in some cases. In a number of North Island centres there would be no change and in others the charges would go up.

Mr Cooke, in a further submission to the tribunal, said the proposal made by the i association was a step in the direction not of theoretical uniformity in the commission charges but of such a degree of practical uniformity as could be obtained., Jtxwas a step the association hopjed/fdslaKe in co-opera* of the and of would- re- • upon the ' Three ’’—the / Agency Com* ■Jisiniv^iitd.,-"Wright, Stephenson and C 0.,, Ltd., and Dalgety and Co., Ltd.— who did about half of the business, would probably gain more than half of the estimated increase in returns. A general increase in the South Island was not warranted, Mr Cooke’s own case in the division’s applications having afforded grounds for reaching this conclusion Mr Lewin said he could not conceive of the tribunal agreeing to allow its responsibility for determining the rates to be handed over to the farmers and the companies to carry out as Mr Cooke’s proposal suggested. Mr Cooke said he wanted to make it clear that under the association’s proposal there would be no increase in the South. Island unless the consent of Federated Farmers or the tribunal was obtained. Mr Justice Hunter, president of the tribunal, said the tribunal had no power to delegate its authority. Mr Cooke said the association wanted an order fixing the maximum rates subject to the two provisions he had already stated. Even though the order were made some firms might not want to make the increases. The association believed that some would not apply for them. Federated Farmers had declared itself in favour ~of negotiation, and the association suggested that the farmers should have a voice. If agreement could not be obtained, then the matter would be referred to the tribunal.