TRIBUNAL REFUSES INCREASES ON GROCERS’ PROFIT MARGINS

Wanganui Chronicle, 18 August 1948, Page 6

TRIBUNAL REFUSES INCREASES ON GROCERS’ PROFIT MARGINS

(P.A.) Wellington, Aug. 17. A decision that no grounds existed for increasing grocers’ profit margins, as was sought by the New Zealand Master Grocers’ Federation recently, was announced today by the Price Tribunal. A statement issued by the tribunal said that at the hearing of the grocers’ application particular emphasis had been placed on the claims of the “service” grocer (as compared with the “cash and carry” store) for some extra profit margin to reimburse him for expenses involved in providing a delivery service. The tribunal had decided. on the evidence submitted, which showed that .‘service’ expenses had increased at a lower rate than the turnover, with a consequent increase in the overall net profits, that no allowance should be granted to retail grocers to compensate for delivery expenses. The tribunal also decided that it would be competent for any grocer who was able to substantiate hardship with respect to delivery costs in remote areas, to make an individual application for special consideration The tribunal announced its approval of the Price Control Division’s application for the introduction of an automatic schem P for calculating the percentage rate having been decided by relation to the previous unit marit

up. . . The statement said this decision was in furtherance of the tribunal s polic of applying such schemes wherever possible to industry, because they ar P simpler to operate and enabled goods to be for sale more quickly. No increase m profits, or in nrices to the consumer was involved. th P existing profit margins being merely converted to percentages. The tribunal has reserved a right to review percentages in the event of increases in the landed or manufactured prices of goods. The decision will operate from August 30. _