Ban On Private Traders In State Housing Areas

Chronicle (Levin), 30 January 1947, Page 6

Ban On Private Traders In State Housing Areas

-Press AsAociation

By Telegraph—

WELLINGTON, Jan. 29. In a statem'ent issued today by Mr. G. L. Riley, seeretary of the New Zealand - Retailers ' Federation, extreme concern was expressed with regard to the annouiicement released by the Government in respect of its policy concerning exclusive trading rights to cooperatives i'n State housing settlements. The statement continues: "This matter is one which previously has been brought to the notice of tlie Government by the federation and is the subject of remits for the consideration of delegates at the forthcoming conferenee of the federation to 8e held during the next month. However, the following points are immediately apparent. "Any undertaking confident of giving an efficient and satisfactory service to the public should not need to seek a monopoly backed by the Government. "It is obvious the cooperative movement is not satisfied that it can stand on its own feet on meeting competition and it therefore follows that under a monopoly the consuming public will not obtain the high standard of service and selection of goods they would obtain if individual traders, under the spur of competition, were established in such areas. "It is surprising to note that this statement should come from the Minister of Rehabilitation, Hon. C. F. Skinner, who should be in a position to know that numerous returned servicemen are looking for just such an opening to commence business on tbeir own account and not as employees. A young man commencing business in a newlybuiit up area is not faced with the necessity of laying out his capital in purchasing the goodwill of an existing business and State housing settlements are eminently suitable for such ventures. ' ' The federation, while recognising the rights of residents to support a cooperative movemnet, at the same time contends that individual traders should have the opportunity to compete on aip equal footing. "It is feared. that this is the forerunner of a policy which will eventuallv strike at the existence of all privately ewned businesses. "In view of the wide ramifications of this move, a full statement of the federation 's attitude will be made after du-e consideration l)y delegates from all parts of New Zealand attending the conferenee."