PLAN MAY BE DROPPED

Poverty Bay Herald, Volume LXIV, Issue 19334, 26 May 1937, Page 5

PLAN MAY BE DROPPED

MANUFACTURERS' MERGER

DOMINION DRUG TRADE

PROPOSALS BY STATE

(Special to tho Herald.) AUCKLAND, this day

A fairly general impression among various interested parties seems to be that the proposal for the merger of manufacturers mooted by the Government, under the scheme for the reorganisation of the wholesale drug and chemistry industries will now be dropped.

The attitude of one large manufacturing firm operating throughout the Dominion has probably largely contributed to the situation, but also of importance is the fact that investigations have showed that the difficulties were much more complex than was at first appreciated by the Government.

When the retail chemists first asked for protection against the operations of an overseas firm of druggists, which had started operations in the nonunion with chain stores, they were told they must, first put their own house in order, and that they could put themselves on more even terms with their overseas competitor if the buying methods were changed. A scheme for the rationalisation of drug manufacturing in the Dominion was then propounded.

Under the instruction of the Government reut.i chemists have been working along lines of improving the conditions in the industry, but a hurdle still facing them is the acquirement of stocks on better terms than at present.

It was found that other retail interests besides those of chemists are involved in the situation, and that their needs often conflicted with those of chemists. Grocers are large buyers from the New Zealand manufacturers, as also are many other sections of industry.

The opinion appears to be shaping among retail chemists that the best alternative to the original scheme of rationalised manufactuer and supply, which at the moment does not appear likely to be put into operation, is the creation of some form of bulK buying and possibly a packeting organisation which could distribute supplies on improved terms to chemists.