BUTCHERS LOSING BECAUSE OF MEAT PRICE CONTROLS

Bay of Plenty Beacon, Volume 14, Issue 27, 19 August 1949, Page 5

BUTCHERS LOSING BECAUSE OF MEAT PRICE CONTROLS

(Special to Beacon) Wellington, Thursday. ‘ The retail and wholesale prices of fresh meat were discussed by Mr W. Sullivan (National, Bay of Plenty) in the House of Representatives, when the Minister of Industries and Commerce (Mr Nordmeyer) informed him, in answer to a question, that the Price Tribunal had announced that the controls over the retail and wholesale prices of fresh meat would he lifted as from August 8. (The renly was dated August 3).

Mr Sullivan had asked the Minister whether he was awatre that retail butchers operating under the existing price control order were heavy losers, and whether he would explain the justness of a fixed retail price when butchers • had to buy supplies on an uncontrolled market; whether he intended do advance the decontrol period, knowing retail prices must rise, then attaching the necessity for this increase to open market or decontrol. Livestock values had risen sharply, he said, in a note to the question, and the retailer could no longer purchase his supplies in' relationship to the retail order.

Based On False Premises Discussing the Minister’s reply, Mr Sullivan said the Minister must surely be aware that the retail price allowed to butchers foir some time had been based upon false premises -—that butchers had had to purchase supplies upon the /open market at higher prices than that upon which the retail price was calculated. In spite of the fact that the department was fully aware of the fact that butcher's had applied to the Price Tribunal to reconsider retail prices, the tribunal had only recently taken action against some butchers for committing a breach of price orders, and those butqhers had been fined.* Mr Sullivan said he had had an opportunity of perusing the books of some butchers and had inspected properly audited monthly balances. In one case the books showed that a butcher had lost approximately £S4T over six months. In some cases it was acknowledged by butchers themselves that they charged as much as 3d or 4d a pound above that sanctioned by 1 price orders; they had to do it in order to remain solvent. Wrong To Take Action

It was wrong for the authorities to take action against the butchers foi. breaches ■ when their application for a reconsideration of retail prices had not been dealt with. Losses had been forced on butchers; perhaps that was what some would like to see, and. so, give the Government an excuse for opening State butcher

snaps. Had the removal of /restrictions been done so that it could be said to the electors, “We lifted the retail price of fresh meat, and the result has been that prices have increased considerably?” Mr Sullivan added.