The Waikato Times WEDNESDAY, MARCH 10, 1943 STATE MARKETING SYSTEM

Waikato Times, Volume 132, Issue 21982, 10 March 1943, Page 2

The Waikato Times WEDNESDAY, MARCH 10, 1943 STATE MARKETING SYSTEM

Defence of the much-criticised Internal Marketing Department by Government members in the House of Representatives has not been very convincing. The last word has not yet been said on the subject. The usual reply to complaints is that produce ordinarily consumed by the people of New Zealand is being supplied to the armed forces of the United Nations, while in other cases of shortage the reason is the lack of shipping space. But there is no complaint that certain classes of goods are in short supply because they are being sent to the armed forces. The policy of sending away everything that is needed by the Services is heartily approved. The complaint is that there is an extraordinary disparity in the prices paid to producers and those charged to the consumers by the Marketing Department, and that the department has failed to make full use of the produce available. There is no longer any doubt that regulation and control have led to waste of consumable goods and excessive prices for those which are marketed. The profit made by the department of £IOO,OOO in 1940-41 and £94,000 in the first 11 months of 1941-42, mentioned by Mrs A. N. Grigg in the House, represents only a portion of the additional cost imposed on consumers. Why a State department should exact such a profit remains to be explained. It could not be expected that accounts could be balanced exactly, but £IOO,OOO a year is an unreasonable profit for a public concern. Of the waste, particularly of fruit, there is evidence in almost every private orchard in the country. Because of the “red tape” attached to the marketing, large quantities of fruit are allowed to rot while prices in the shops are exorbitant, not because shopkeepers are making undue profit but because they have to pay dearly for stocks. It may be said that it is not the fault of the department if fruit is allowed to waste because private growers will not comply with the regulations, but there it is and the system will not be efficient until the facts are recognised and a remedy is found. Unfortunately, war conditions have confused the whole issue and it is not easy to assess accurately the advantages and disadvantages of the operations of the Marketing Department. Some of its transactions must necessarily remain secret. But when produce purchased from the producers is sold at a large profit, and when full use is not made of all available produce of reasonable quality, corrective action is necessary. Is the Internal Marketing Department to operate as a profit-making concern or is it to serve the public efficiently and without profit ? Mrs Grigg described the profit as a “concealed tax,” and that is what it amounts to, no matter what use may be made of the funds. Fruit, vegetables and other produce must be made available for war purposes, and for that reason some measure of control may be inevitable, but it is on the efficiency of the system that the department must be judged. There is no question that the public of New Zealand is paying dearly for its State marketing system.