THE LATEST STEP

Waikato Times, Volume 122, Issue 20423, 14 February 1938, Page 6

THE LATEST STEP

The New Zealand Government apparently is going to enter the citrus fruit trade. The exact legal position has not yet been defined, but there are powers to place embargoes on imports and the idea is evidently to prevent any private party from importing citrus fruits and bananas. The power to fix prices wai obtained in the amendment to the Primary Products Marketing Act, passed last session, but the proposal now announced goes much further than that. It will make the State a purchaser of fruit, place upon it the responsibility of securing adequate supplies and mark another stage of the invasion of the sphere of trade by the authorities. The reason given is that the prices of these fruits must be reduced, but the experience of the partial system of control, which has been in operation for some time, does not justify optimism in that respect. The Government has assumed control of several important items hut a reduction of prices has not yet marked its record. Wheat is no cheaper, nor flour, nor bread. It does not matter what low point the overseas dairy produce markets may touch, the domestic consumer will continue to pay' a retail price based on the guaranteed prices. Formerly he paid on London parity and when prices fell he paid less. The Minister of Marketing will, of course, have made certain that all the necessary legal powers are available, but he may' find it a little difficult- to point to any item in the election manifesto that could be said to confer a mandate on the Government to enter the importing business. The Internal Marketing Department will probably have, as in the case of the dairy export trade, to secure the services of men trained by private enterprise for the purpose of establishing the new order. But fortunately there will be one immediate test, and that will be the prices which the consumers will have to pay for the imported fruit. The Minister has said that reduced prices are the goal, and as the scheme, or a part of it, will come into operation in the course of a few weeks, there will be afforded ample opportunity to judge the development by its results. If a purchaser, with overdraft facilities without limit, appears in the overseas markets, which supply no small percentage of the fruit supplies, it would not be surprising if prices firmed. That is usually the ease, but the issue will be put to the test when purchasing on State account actually' commences. The thing to be borne in mind is the promise that prices to the consumer will be reduced. That will be the angle from which many people will judge the scheme, while others will see in it a step likely to lead to a rigid system of State control of the import trade of the Dominion.