SHORTAGE OF DRUGS

Southland Times, Issue 23932, 26 September 1939, Page 11

SHORTAGE OF DRUGS

CHANGE IN WHOLESALE SELLING RATES SOUGHT

With hospitals in need of certain essential medical supplies, the stock position of which is acute, overseas orders have been cancelled because the importing agents are unable to obtain authority from the Price Tribunal to raise prices based on higher landed costs. According to a big distributing house, the tribunal has failed even to acknowledge receipt of urgent requests made on September 11 and 14 for permission to adjust the wholesale selling rates, states The New Zealand Herald. In the meantime, this firm has been compelled to ration essential drugs and other supplies to hospitals throughout the country. It has given one hospital onefourth of its orders, and another onetenth.

Before approaching the Price Tribunal representations were made to the Department of Industries and Commerce by the firm, asking whether it would be possible to raise prices to the extent of increased landing costs, the same rate of profit that ruled before September 1 to be retained. The request was refused. Similar requests were made to the Price Tribunal in Wellington. It was pointed out that fluctuations on the dollar exchange had increased landed costs by at least 17 per cent. It was emphasized that unless some relief were granted, essential medical supplies would be unobtainable in the very near future. It was suggested that the Minister should be asked to permit all future supplies obtained at higher costs to be increased in price, it being definitely understood that any such increases were not to return a greater margin of profit than before.