RETAILERS TAKE GRAVE VIEW OF BLOCKING OF PRIVATE ENTERPRISE

Wanganui Chronicle, 30 January 1947, Page 6

RETAILERS TAKE GRAVE VIEW OF BLOCKING OF PRIVATE ENTERPRISE

EXCLUSIVE RIGHTS TO CO-OPERATIVES IN STATE HOUSING SETTLEMENTS

(P.A.) Wellington, Jan. 29 In a statement issued to-day by Mr. G. L. Riley, secretary of the New Zealand Retailers' Federation, extreme concern was expressed with regard to the announcement released by the Government in respect of its policy concerning the exclusive trading rights to co-operatives in State housing settlements. "This matter is one which previously has been brought to the notice of the Government by the Federation, and is the subject of remits for consideration of delegates at the forthcoming conference of fhe federation, to be held during next month. However, the following points are immediately apparent. Any undertaking confident of giving efficient and satisfactory service to the public should not need to seek a monopoly backed by the Government. C«-OPERATrtT,S DO NOT UKti COMPETITION. ’lt is obvious the co-operative movement is not satisfied that it can stand on its own feet on meeting competition, and it, therefore, follows that under a monopoly the consuming public will not obtain the high standard of service and selection of fgoods they would obtain if individual traders, under the spur of competition, were esablished in such areas. It is surprising to note that this statement should come from the Minister of Rehabilitation (Mr. Skinner), who should be in a position to know that, numerous returned servicemen are looking for just such an opening to commence business on their own account, and not as employees. A young man commencing business in a built up area la. not facea with the necessity of laying out capital jn purchasing goodwill of an existing business, and Stae housing settlements are eminently suitable for such ventures. "The Federation, while recognising the rights ot residents to support a co-operative movement, St the same time contends that individual traders should have an opportunity to compete on an equal footing. It is feared this is the forerunner of a policy which will eventually strike at the existence of all privately-owned businesses. In view of the wide ramifications of this move, a full statement, of the Federation’s attiude will be made, after due consideration, by delegates from all parts of New Zeeland atending he conference.’’ NO PRIVATE ENTERPRISE. It was reported yesterday that the Government has decided that there shall be no private enterprise allowed in the establishment of commercial and trading businesses of any kind in the State housing areas of the Hutt Valley. It has agreed to a proposal by the Hutt Valley Consumers' Co-opera-tive Society that the society should have exclusive control of such services.

The policy has been laid down in general terms by the Minister ot Rehabilitaion, Mr. Skinner, in a letter to the president of the society, Mr. J. S. Berry, replying to a request that the Government should definitely state its atitude to the society's aim to con-

trol trading and commercial business in the new housing areas of the valley. In his letter to Mr. Berry, Mr. Skinner stated: — “I am authorised to inform the society through you that the Government has reached the following conclusions in regard to your proposals: "(1) The Government approves the prfnciple of co-operative trading in State housing areas where 75 pel- cent, of the residents express their intention of supporting this principle, and in such cases the Government will facilitate the erection of buildings to permit the extension and development of co-operative trading and will make these buildings available on agreed terms to co-operative societies. "(2) The Government approves the establishment of community centres in State rental housing areas, and, where such centres are established, agrees to the whole of the commercial services and trading business being placed under the exclusive control of the particular co-operative society." Expansion Programme. The co-operative business which the society proposes will be included in the community centres of Epuni, Naenae and Taita. At present the society controls two groceries, two butcheries, one milk bar dairy, a shoe repair service and break delivery service. Within three years the complete scheme of consumer services is expected to include a chain of food stores (grocery with household requisites, greengrocery, butchery and milk bar-dairy); three department stores; productive and servicing establishments, including a bakery, meat processing factory, garages, shoe repair factory, coal and wood yard; a catering system comprising restaurants, tea-rooms, milk bars, taverns and a hotel-hostel.

The society will shortly be advertising foi' a general manager of aii the expanding services. The salary offered will be £1250 a year. The annual meeting of the society last month passed a resolution, which has yet to be ratified, that while retaining for individual distribution Io its members two-thirds of its distributable surpluses, the society should agree to pay a combined yearly subsidy to the three community centres of Epuni, Naenae and Taita of the remainder of the surpluses, less tax, for as long as the financial needs of the centres call fey such subsidising. This would be in addition to the financial transfer involved in providing the commercial and trading businesses of the centres.