FOOTWEAR PRICES

Otago Daily Times, Issue 27157, 12 August 1949, Page 8

FOOTWEAR PRICES

EFFECT OF WAGE INCREASES ANNOUNCEMENT BY PRICE TRIBUNAL PA WELLINGTON, Aug. 11. The Price Tribunal has announced that the discussion between the price control division and the New Zealand Retailers’ Federation on a reduction of profit margins on the retail footwear trade have been completed. The wage increases granted to the footwear operatives have been passed into the manufactured price, and in acocrdance with the tribunal’s policy the division discussed with footwear retailers the question whether those increased costs would be absorbed wholly or in par) by the retail distributors so that the final consumer price would be held as firmly as possible. A fiat reduction of 2£ per cent, on retail profit margins has been agreed to by the federation, and this reduction by one-sixteenth in the previous margins was sufficient to offset approximately one-half of the increased costs allowed manufacturers. As it has not beeft possible for the retail trade to absorb completely the manufacturers’ increases, there might be small increases for locally-made shoes, but in no case would the increase be greater than 2i per cent. In respect of imported footwear, however, there would be further price de creases as the reductions in profit margins by one-sixteenth applied in respect of both the imported and locaily-made footwear. The tribunal has instructed that a further review of the retail margins be undertaken when the financial accounts for the 1948-49 trading year are available, added the statement.