REDUCTION IN THE PRICE OF TEA

Wanganui Chronicle, 30 October 1948, Page 4

REDUCTION IN THE PRICE OF TEA

“BARE-FACED INSULT TO THE GROCERS,” SAYS SECRETARY AUCKLAND, Last Night (PA).— ‘•This is a bare-faced insult to the retail grocery trade,” said Mr. R. M. Barker, secretary of the New Zealand Master Grocers’ Federation, when the announcement of the reduction in the price of tea was referred to him tonight.

“The retail trade to absorb the loss of 6d per lb on existing stocks is to completely shatter the faith of the grocers of the Dominion in the ability of the Government to fairly and sensib.y deal with the situation. When the position was in reverse and prices of tea, sugar and cheese were increased, retailers were required to pay the ampuiiL of the increase into the public account on all stocks held. “The trade now wants to.know why on this occasion the Government could not have refunded the 6d per lb to the grocers on stocks held at the c.ose of today’s business,” continued Mr. Barker. “This would have been the honourable thing to do, especially in view of the fact that a subsidy of Is per lb is still being paid on tea.

“The amount of the reduction is more than the prolit the retailer received on the sa-e of each packet of lea, and therefore, the trade has no intention of reducing retail prices until stocks which have been purchased at the higher cost have been disposed of.

“Grocers in Auckland are being asked to advise the association of the total quantity of tea held, so that the full gravity of the attemped imposition can be assessed. “Grocers were asked to build up stocks of tea and sugar prior to the abo.ition of rationing, so that any public demand could bo met. Stocks have been maintained at a high level, and it. is just w.sliful thinking to anticipate that the prices of those stocks will be reduced next week.”