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contentions frequently put forward in the past by both the producer and consumer that the disparity between the wholesale and retail prices is abnormally great. The evidence has also confirmed to the satisfaction of the Committee the complaints made by the Fruit-retailers' Association of Wellington and elsewhere that unreliable packing —which sometimes amounts to fraudulent practices—is common with respect to fruit and vegetables offered for sale throughout New Zealand, and that such packing has hampered free trading, to the detriment of the producer, retailer, and consumer. While it is realized that the prevailing disparity between the wholesale and retail price of fruit and vegetables is affected by other factors, such as high rents, the perishable nature of the commodity, &c., the Committee is forced to the conclusion that faulty packing has an extremely detrimental effect, and consequently, in the interest of all concerned in the industry, this should be remedied with as little delay as possible. The remedies generally advocated by witnesses representing the different interests concerned in the industry—namely, producers, auctioneers, and retailers —were those of compulsory standardization of all fruit and vegetables offered for sale, both wholesale and retail, and the entire elimination of all low-grade fruit. Standardization means the classification of the produce according to quality, size, and appearance into several distinct grades, and the subsequent packing and sale of such produce according to grade. While appreciating the possible advantages to the industry that would result from the adoption of a general system of standardization, the Committee, having regard to the drastic changes in the present marketing system that the general standardization of all fruit and vegetables would entail, and having regard to the innumerable difficulties that would beset the establishment of such a system, if attempted, feels that it cannot follow the advice tendered in this connection in its entirety. Nevertheless, as a Committee, we do recommend the adoption of a restricted system of standardizationrestricted both in its application and in regard to the produce to which it should apply. It is appreciated that to be effective in the direction intended—i.e., to give confidence to the buyer—standardization must be reliably carried out. To ensure this a considerable amount of supervision on the part of Government Inspectors will be essential; hence the advisability of keeping any system of standardization introduced within such bounds as will ensure reasonably economic control and the maximum assurance of success. In the opinion of the Committee, the successful operation of a restricted system of standardization that may be extended from time to time would probably result in general standardization becoming an accomplished fact more readily and satisfactorily than were the larger scheme now attempted. The Committee recommends that any standardization introduced should apply to the retailer as well as the producer, so that any advantages to be derived from standardization would be shared in by the consumer by his being placed in a position to purchase from the retailer standardized commodities according to grade. The restricted system of standardization recommended by the Committee is as follows : Thatcompulsory standardization be made to apply to all apples, pears, lemons, onions, and potatoes offered for sale through the recognized commercial channels obtaining in the cities and larger towns. " Commercial channels " to be defined as meaning all public auction marts, retail fruit and vegetable shops, and other stores selling fruit, and public fruit-stalls. It will be seen from the foregoing, that the proposed standardization is restricted in the following directions (1) To apples, pears, lemons, onions, and potatoes ; such standardization to include, in each case, all produce free of disease and fit for human consumption : (2) To the sale of these commodities through ordinary commercial channels : (3) To such channels as they exist in such of our leading cities and towns as are prescribed. In amplication, the Committee would point out with respect to (1) that the produce referred to therein not only represents important commercial lines, but are such as lend themselves more readily to standardization than do soft fruits and other classses of vegetables, &c. The Committee believes that the benefits of standardization would be more quickly recognized if, in the meantime, it were applied only to these classes of produce. (2) This proposal should meet all the principal commercial requirements of the industry, at the same time leaving the producer as unhampered as possible in the disposal of his produce by private treaty either to the consumer or the fruit and produce trader, and the latter in the disposal of unstandardized produce in any manner other than through the commercial channels referred to. (3) Perfection in this cannot be expected, nor will anything like this state of perfection obtain unless the packing of produce presented to the various markets under any standardization scheme is strictly inspected and checked by competent Government officers, and faults on the part of packers brought to their notice, and correct practices enforced by more drastic action, if persisted in. It is evident that the services of additional Inspectors will be necessary for this, consequently the wider the scope of standardization the greater will be the number of additional officers required, hence the proposal to confine the standardization scheme to certain of our larger towns. The Committee recommends that the additional cost of inspection, which will be unavoidable if adequate marketing improvements are to obtain, should be borne by the industry, and, to this end, would recommend the imposition of a levy not to exceed Id. per package, such levy to be collected per medium of a duty stamp of the required value, one such stamp to be affixed by the producer to each original package of standardized produce. The Committee recommends that the Minister be empowered to extend the operations of this Act to other boroughs and towns, and to include other kinds of fruit and vegetables, as circumstances warrant from time to time.