BLACK MARKETS GROWING IN VEGETABLES AND FRUIT IN NEW ZEALAND

Wanganui Chronicle, 14 February 1947, Page 6

BLACK MARKETS GROWING IN VEGETABLES AND FRUIT IN NEW ZEALAND

MERCHANTS SAY TROUBLE IS DUE TO BUREAUCRATIC CONTROL

(P.A.) Wellington, Feb. 13. The prevalence of black-marketing in perishable food lines throughout the Dominion during the past six months was discussed at a meeting of the New Zealand Fruit and Produce Merchants and Auctioneers’ Federation executive in Wellington. In a statement pn the subject the executive says that very many instances from all parts of the Dominion were reported of sales of vegetables, particularly potatoes, and fruits direct to retailers and consumers at prices above those scheduled in price orders, “Growers, naturally, will endeavvxir to obtain the best returns for their labour available, more so in such ■a season as this, when the weather has ’affected the crops so adversely,” says the report. “The obvious result of this practice is that a favoured few get supplies and the many go without. *Taking the longer view, the more regrettable result of these price controls which have no regard for crop •deficiencies caused by inclement weather, is that some growers tend to go ©ut of producing controlled lines in favour of those that are free, or, alternatively, to concentrate on controlled lines which are easier to produce at certain times of the year. Others have given up cropping or fruit-growing altogether, and put ’their land to other uses. Some 1500 •acres of apple trees have been grubbed out during the past few years, Tepresentfng a loss of approximately 228,600 trees.

“Greater production ani so cheaper goods is the need. It has been proved, during past years, that so far, at any rate as perishable foodstuffs are conoemed, this object has not only not b?en achieved, but lias been definitely discouraged by price control and ceiling prices. The present system has caused a reduction in production and the appearance of a considerable black-market which price investigation and control is either unable or unwilling to combat. The removal of all restrictions and price controls from perishable foods would immediately encourage greater production in all varieties, which, in time, would mean a greater share for more people at reasonable prices. Alternatively, a very much more generous ceiling should be allowed. This is particularly applicable to pip fruits. New Zealand apple growers, under existing price controls, are selling at a level well below world parity. This season early new season’s apples have been driven underground. Whereas, normally supplies were available between Christmas and New Year, first consignments to wholesalers this year were made by the Internal Marketing ’Division this month. “Let New Zealand follow the example of every other English speaking country in the world and remove the shackles of bureaucratic control from perishable food, and industry,” concludes the statement. “The immediate result would be greater supplies of betfc?r quality at a Cheaper average price.”