BRITISH BUYERS WANT PRIVATE TRADING RESUMED

Wanganui Chronicle, 5 October 1949, Page 5

BRITISH BUYERS WANT PRIVATE TRADING RESUMED

Devaluation Has Increased The Problems They Are Meeting LONDON, Oct. 4 (Rec. 8 ppi).“Complete abandonment of the present policy of Government buying and immediate reversion to private trading was urged by 2000 representatives of leading British buying houses, who attended a conference of purchasing officers at Scarborough.

They claimed that under devaluation British industry was being forced to pay excessive prices for raw materials, many of which were obtained from a sterling area. “Arguments for the freedom of choice and competitive prices have redoubled the force in the country’s present economic plight,” stated a unanimous resolution which is to be submitted to the Government. “No buyer believes in the myth of stability of prices, yet this is the per on which State trading is hung, said Mr. A. H. Thomas, who opened the discussion. "Stability of prices with the Government means large and unpredictable fluctuations at infrequent periods. Such fluctuations create havoc with costs.

“No Government, whatever its political colour, can ensure supplies of raw materials when so many factors affect the issue/’ after so many years of stagflation, it was problematical whether private enterprise could marshall the necessary financial and material resources to be able to resume operations under present conditions, continued Mr. Thomas. It seemed that only a trade recession, with its attendant slackening demand could clear the way for a return of the private trader. It was deplorable that such a contingency had to be contemplated, but if it was unavoidable it was better that the consequent commercial risks should be borne bv private enterprise, rather than by the Government. (N.Z.P.A. Special Correspondent).