OPERATED AT LOSS

Poverty Bay Herald, Volume LXIV, Issue 19374, 12 July 1937, Page 12

OPERATED AT LOSS

ORANGE CONTROL SCHEME MINISTER DENIES REPORT (Per Press Association.) WELLINGTON, last night. Replying to the statement of a Wellington merchant, that the Government had made a profit of £28,000 for the season on its trading in Cook Island oranges, the acting-Minister of External Affairs, the Hon. F. Langstone, said on Saturday, when asked the reasons why the Government had taken control of Cook Islands fruit, that the allegation was utterly absurd.

In fixing the wholesale prices for sale to retailers, the Government’s object had simply been to cover the landed cost without making any. profit for the Government. “The landed cost of the fruit is approximately IBs per case on the wharf at Auckland, which makes practically no allowance for wastage or provision for eventualities of any sort,’’ said Mr. Langstone. “It will be noted also that for early shipments this season the cases used were those taken over from local trading concerns at a cost of over 3s each. To the 15s per case must be added brokers’ commission in New Zealand and cost of transport from Auckland to southern centres. Far from making a profit of from 3s 5d to 9s 5d a case, the operations of the Government have, up to date, resulted in a substantial loss.

"I think the present indications are that the scheme will eventually be successful, but, naturally, in the first year, many difficulties arise,” concluded Mr. Langstone. ‘‘With the experience gained this year, however, I feel that we should in future be able to handle the fruit in a manner which will give the grower a reasonable return for his effort and ensure that the purchaser in New Zealand will receive sound fruit at a reasonable price.”