NO IMMEDIATE SHORTAGE

Southland Times, Issue 23976, 17 November 1939, Page 4

NO IMMEDIATE SHORTAGE

“Ample Supplies Of Tea” 7 MINISTER BLAMES PANIC DEMAND Saving To Consumers Claimed (United Press Association) WELLINGTON, November 16. “There are ample supplies of tea for immediate needs in New Zealand,” said the Minister of Industries and Commerce (the Hon. D. G. Sullivan) in a statement this evening. He added that any shortage experienced by the retailers had not been caused, by any holding up of sterling funds for the importation of tea. The Government had at all times made provision for the release of sterling for the purchase of tea but it had no control over the output of Ceylon, 80 per cent of which had been commandeered by the British Government. Mr Sullivan added that an artificially stimulated demand, in plain language, a panic demand for the purpose of hoarding, arose when hostilities broke, out. Because of this demand stocks of tea were admittedly depleted at a ! much quicker rate than was normally the case and this doubtless contributed to the shortage of supplies released for retail sale. Another factor operating, said the. Minister, was the commandeer by the British Government of 80 per cent of the output of India and Ceylon. This necessitated the cancellation of the tea sales and it also had the effect of materially increasing prices. Adjustment as between Ceylon and the British Government had not been made and the tea sales had been resumed. To protect consumers, he said, the Price Stabilization Regulations, gazetted on September 1, fixed the price of tea, together with all prices, at the level existing on August 31. Since that time, until the replenishment of stocks became necessary, the price remained the same. SAVING TO CONSUMERS The Minister then went on to deal with the saving which had been effected to consumers by this action. If the Government permitted tea to rise in price by sixpence per lb as it had done in Australia" in the first week of the war, the public would have had to pay an additional sum of £14,960 for the period between September 8 and October 5 and from September 8 to November 2 a total of £25,931/13/- had been saved. The tea in store on September 8, added Mr Sullivan, was 2,485,7051 b and because of the panic demand it fell to 1,887,2821 b in a week. The subsequent weeks had shown a reduction to approximately 130,0001 b. Now stocks had to be replenished from overseas and increased oversea prices had to be met, he continued, together with the added cost of freight and insurance. After careful investigation of all factors the Price Investigation Tribunal had agreed to increases covering the actual increase in cost and nothing else. The Minister referred to the amicable relations between the Price Tribunal and the trade and said that now that an increased price had been permitted and the position clarified, stocks of tea should be available for retailers. Old stocks were depleted but fresh stocks had arrived or should arrive in the near future. ’