RETAIL PRICES MUST DROP

Taranaki Daily News, 9 November 1932, Page 6

RETAIL PRICES MUST DROP

the government emphatic

WIDE MANUFACTURING MARGIN.

LABOUR’S “RIDICULOUS” REQUEST

HIGHER PROTECTION FOR WOOL.

(By Wire —Parliamentary Reporter.) Wellington, Last Night. Retail prices in New Zealand must come down, according to an emphatic statement by the Rt. Hon. J. G. Coates in the House of Representatives tonight when answering Labour speakers who advocated higher protection for the woollen industry. He said there was far too great a difference between the price of the raw material and that of the finished article.

“It is just about time we took this thing by the throat and said they must reduce prices,” Mr. Coates said. He thought New Zealand could thank its lucky stars that the Government had not been agreeable to the policy advocated by some who thought the Dominion should raise its tariffs to the level of Australia’s. Such a course could never be agreed to by the present Government.

One woollen company in New Zealand had just declared a dividend of 10 per cent.; yet the Labour Party wanted to accord it more protection. The thing was too ridiculous to argue. It was time the whole question of retail prices was gone into and the Government said they had to be reduced. Mr. W. J- Polson (Co., Stratford): “We cannot protect inefficiency.” Mr. Coates: “It is not good policy for me to talk like this; it is bad policy.” Mr. H. E. Holland (Leader of the Opposition): “Were you not advocating high prices at Ottawa?” Mr. Coates: “Yes, but that was primary prices I was talking about; now I am talking about retail prices. The lag between the two is too great.”