MINISTER MEETS FRUITERERS

Southland Times, Issue 23140, 5 March 1937, Page 8

MINISTER MEETS FRUITERERS

Several Requests Made SALES OF FRUIT BY GROCERS RESTRICTION ADVOCATED A large and representative deputation of Invercargill fruiterers, introduced by Mr W. M. C. Denham, M.P., interviewed the Minister of Industries and Commerce, the Hon. D. G. Sullivan, last evening about several matters affecting their industry. A request was made for the elimination of the domestic rate on fruit, as it was stated that anyone buying two hundredweight of fruit could have it railed from Otago Central to Invercargill for 3/8, whereas the fruiterers were required to pay 5/2 for the same service. It was suggested that if anyone could afford to obtain that quantity of fruit at one time he should be able to pay the same freight rate as tile retailer. Another request was that the present difference in favour of New Zealand fruit (lemons) as compared with the imported article —27/6 a ton railage —should be reduced. A third point advanced by the fruiterers was that they considered grocers should not be allowed to compete with them in the sale of fruit, and it was suggested that this selling was done only to bring people to the grocers’ shops, and that frequently the grocers obtained no profit from their sales of this commodity because of their comparative smallness of trade in it. It was stated that a grocer often dealt in green fruits and the buyers had to go to a fruiterer for ripened fruit, and that consequenntly the fruiterer took all the risk of the trade while suffering severe competition in the safe “bread and butter” lines. Grapes were a line which the fruiterers instanced as one in which there was big risk of loss and that grocers did not handle. It was suggested that the position would be met if the retail sale of fruit were confined to the fruiterers. Reference was also made to an embargo on Jamaican oranges and the ease with which Japanese oranges could be imported. The Minister said that there was no embargo on Jamaican oranges and that the shortage from this source was due to other causes, principally shipping facilities.

Embargo on Citrus Fruit

Another point raised concerned the embargo on citrus fruits from Australia, a remark being made that “fruiterers here are penalized because some farmers want to sell potatoes in Australia.” Mr Sullivan commented that although the orange embargo had been in existence for three or four years, there had been no very strong protest against it from New Zealand fruiterers, but it seemed that the Labour Government was being blamed for its existence. A further suggestion made by the deputation was that if fruiterers had the first call on oranges at auction sales it would improve their position. It was stated that frequently the fruiterers could not even see the fruit they wished to bid for because so many of the public were bidding in front of them; that members of the public buying fruit often raised the price unduly because their bids might be for single cases; and that auction prices obtained by such buyers were often quoted to the fruiterer in an endeavour to prove that his selling price was too high, overlooking the costs which the fruiterer had to incur in carrying on his business. Reference was also made to the fixed price for bananas, and the association congratulated the Government on its efforts in the control of prices for bananas. It was stated that it was difficult to comply with the desire that a fixed order should be placed months ahead owing to the variation in the demand for this fruit. It was stated that the fruit trade was the only one in which the retailer was forced to compete for his supplies with the public and other sellers at the auction marts, and it was asked that fruit auctions should be confined to fruiterers—that was, a trade sale exclusive of the public. Minister’s Reply Mr Sullivan, in reply, said that he was very pleased to listen to the story of the fruiterers and of their difficulties, and if he could do anything to improve their position he would like to do it. He wished to comment on the fact that the officers of the Southland Fruiterers’ Association had invariably been very courteous in their representations and that this courtesy had been greatly appreciated by himself and his officers. Mr Sullivan said he found that each interest saw matters as they affected that particular interest, but the Minister had to look all round a subject and endeavour to hold the scales of justice fairly, so that everyone affected—in this instance the fruit growers, the fruiterers and the public—would be fairly treated. Concerning differential rates from Otago Central, the Minister undertook to have their representations examined and said that possibly a gentlemen’s agreement might be come to which would help to eliminate any injustice under which the Invercargill fruiterers might be suffering. He pointed out, however, that domestic fruit rates had been introduced many years ago to encourage the use of fruit throughout the Dominion. If the rates were eliminated it would interfere with what had come to be in the course of years a very large and substantial traffic. Once a business of this kind had been established and related interests had been built up round it, they would see that its elimination would be bound to cause much inconvenience and hardship, and that the ultimate effect might be very serious indeed to all those engaged in any way in the fruit industry. Freight Rates In reference to fruit rates from Lyttelton to Invercargill, the Minister promised to ask'the general manager of railways (Mr G. H. Mackley) to confer with his officers and with the Industries and Commerce Department and to furnish him with a report on the matter. It would receive his careful consideration. Replying to the request that grocers be prevented from selling fruit and vegetables in competition with fruiterers, Mr Sullivan said that this opened a very wide question indeed, and he instanced the case of chain stores and other types of businesses which sold a very wide variety of goods. If action were taken to confine the activities of such businesses so that they would not deal in goods for which • there were specialized shops, it would practically eliminate these businesses. Mr Sullivan stated further that they were asking that something should be done in this way which was not done in any other country so far as he knew, and it would be

a very difficult thing to justify because of its interference with public convenience as well as with established business methods. He said that fruiterers themselves frequently sold milk and cream and other articles outside of the strict business of fruiterers. The Minister stated that the fruiterers in Invercargill and elsewhere had gained definite advantages from the general effect of the Labour Government’s policy in increasing the purchasing power of the people, and fruiterers in other parts of the Dominion had freely acknowledged the value of the work done by tfie Government in this respect. Referring to auction sales, Mr Sullivan said that the matter would be looked into and possibly something might be done to improve the position of the fruiterers in respect to their supplies at the auction marts, but he pointed out that the information in the hands of his department showed that sales to the public constituted a very small proportion of the total of such sales, the figures being 5 per cent. The chairman of the Fruiterers’ Association (Mr J. C. Bates) thanked the Minister for the interest he had taken in their representations and the very helpful reply he had given.