RETAIL GROCERY TRADE

Timaru Herald, Volume CLVIII, Issue 23257, 19 July 1945, Page 4

RETAIL GROCERY TRADE

Post-War Planning Interests Of Returned Soldiers (N.Z.P.A.) AUCKLAND. July 18. A statement on the Wellington report of a plan for the post-war reconstruction of the retail grocery trade was made by the secretary of the New Zealand Master Grocers’ Federation (Mr R. M. Barker). The report said the plan was based on the recommendations of the federation and would be submitted shortly to the Minister of Industries and Commerce (the Hon. D. G. Sullivan). Mi- Barker said it was unfortunate that someone who had been present at the meeting should have given a report on the proceedings, which had been taken in committee, especially as a committee had been appointed by Mr Sullivan. As some of the Wellington statements were misleading, the federation had no alternative but to make a reply. “The plan which has been formulated, and which was first submitted to the Ministers of Rehabilitation and Industries and Commerce in April,” Mr Barker said, “is a sincere attempt to assist the problems of rehabilitation. To-day the prices being charged for goodwill are so extortionate that it is virtually impossible for discharged servicemen to acquire their own businesses. During last month suburban grocery businesses have changed hands and amounts ranging from £7OO to £lOOO have been paid for goodwill. Obvious’.-, unless some action is taken, it means that returned men will be at the mercy of those for whom they went away to fight. The Master Grocers’ Federation considers that any amount paid for goodwill should be reconcilable with the potential earning capacity of the business." Incorrect Statement Mr Barker said it was incorrect that the largest chain store organisations were not represented at the Wellington meeting. The Aucklan : Chair. Grocery Stores Association, which represented more than 200 chain grocery stores, sent Mr G. R. Hutchinson. With only one exception every large chain organisation in Aiu’..’and was represented by Mr Hutchinson. “There is no suggestion implied or otherwise of taking over existing chain stores.’’ Mr Barker added "All we have askea is tir.it tiler maintain the status quo until such time as those men who sacrificed their . importunities when they joined the Armed Forces are given a chance to acquire businesses for themselves. "At the present time the trade can absorb all assistants who are offering, but there is a long waiting list of men who want their own businesses. We feel that these men are entitled to every consideration, and we are nol prepared to see them pay fabulous sums for goodwill, especially when, in most cases they have to borrow money to begin in business. Similarly, when they start in busir.es, we feel that they should have some protection, anc for that reason it is considered that n< grocery shops should lie allowed tc open in ar.v area which is already adequately and efficiently provided foi with shops. We believe that the- plar suemitted io the Gcv. rumcm w:!l meet with general approve' and will giv: l:,r,etl servicemen an ■nwunity to which they are entitled, but whict to-day is not available to them.'