PRICE-CUTTING

Dominion, Volume 21, Issue 112, 9 February 1928, Page 12

PRICE-CUTTING

MASTER GROCERS’ VIEWS MINISTER IN REPLY By Telegraph.—Press association. Nelson, February 8. At the request of the Master Grocers’ Conference, the Minister of Industries and Commerce was present at a sitting to hear a discussion on the following remit:—"That this federation urges upon manufacturers, packers, and wholesale distributors the adoption of such measures as they are legally entitled to to prohibit the cutting of goods below a price which shows a fair margin to the retailer; and it further pledges its best efforts to secure the whole-hearted support of the Dominion grocery trade for those manufacturers, packers, and distributors who are prepared to adopt such measures.

The secretary of the federation (Mr. J. H. Barker) said that even the Government transgressed, because, coming from Auckland, they saw in railway refreshment rooms tobacco at Is. 6d. per tin, which no grocer could sell. They contended that the manufacturer had an inalienated right to his goods till they reached the consumer, and should have the right, save for Government interference, to fix prices. A slight amendment to the present Commercial Trusts Act would give them what they needed. Would it not be possible, as in Queensland, to make prices subject to Government approval ? Grocers were agreeable to recognise the difference between the “cash and carry” grocers and those who delivered goods. The evils of price-cutting were on the increase, and, that being admitted, they had the right to ask the Government to interfere to a very large extent. The Minister, in reply, said it was not the Government they had to educate on these matters, but the public. In the great majority of cases the people of New Zealand were fairminded, and there was no genera! desire that the people should trade in a manner not yielding a reasonable profit both to employee and employer, but the feeling in the minds of the primary producers was that a man who started in a big way of business keeps a big staff going, had, perhaps, a motor-car or two, was a millionaire, and was making a fortune, and some control over him was needed.

Continuing, the Minister said he held a dual position as Minister of Industries and Commerce, and he tried to keep the balance even when considering the statements of these conflicting interests. His advice to each was that they should try to understand each other better. Generally speaking, the manufacturers and retailers, through their various organisations, had done their share in trying to get in touch with the man on the land, and the large farmers (not some of their so-called representatives) were reasonable and were prepared to listen to the views of the man in town. After all, their request involved a matter of policy. The aim of Cabinet was to have as little interference with business by the Government as was possible. That was in the mind of their leader and of all the Cabinet, and he wanted them to understand it clearly. He thanked them for putting their views, which would have full consideration.