P. C. Blenkarne fined $ll00

Press, 11 April 1979, Page 28

P. C. Blenkarne fined $ll00

PA Auckland Ati Auckland subsidiary of Odlins, Ltd, has admitted in the Auckland Magistrate’s Court it made more than $300,000 in “excess profits” over a two-year period. The subsidiary, P. C. Blenkarne, Ltd, pleaded guilty in the Magistrate’s Court to eight charges brought by the Department of Trade and Industry. Mr J. R. Aubin, S.M., fined the company a total of $llOO, and imposed solicitors’ and court costs amounting to $2OO. The company, an electrical goods supplier with 13 outlets, admitted three charges that it failed to provide the department with financial accounts for the years to March 31, in 1974, 1976. and 1977; two counts that it failed to provide six-monthly reports in 1976 and 1977; one that it did not furnish the Secretary of the department with details of its maximum profit ceiling; and two charges that it failed to reduce its profitmaking ceiling for the years, to March 31, in 1976 and 1977. Counsel for the department. Mr C. Cato, withdrew

five other charges. He said the company made an “excess profit” of at least i 5307,273 in the years 1976 and 1977. In both years it exceeded the profit ceiling allowed under the Stabilisation of Prices Regulations, 1974. For the company, Mr E. B. Robertson said management had “overlooked” regulations, but had acted within the spirit of the act. There was no suggestion that the company had been profiteering, and it had not charged excessive prices to the public, he said. The company’s profit problems had been brought about by cutting costs. Many companies had overcome the profit regulations by, increasing costs, such as buying expensive cars and holding conferences, “but his company has used productivity and cut costs to get to the situation it is in,” said Mr Robertson. The Magistrate said he accepted that the charges resulted from carelessness, and not from anything sinister. , They were brought because of managerial inefficiency, and not because the company had sought financial advantages.