PURCHASE OF TOWELS

Dominion, Volume 37, Issue 239, 6 July 1944, Page 6

PURCHASE OF TOWELS

Statement By Minister (By Telegraph.--Press Association.) CHRISTCHURCH, July 5. A statement on the Government's purchase of towels from the United Slates was made today by the Minister of .Supply. Mr. Sullivan, who said the criticism being levelled at: the Government: was not based on correct information ami could not. be regarded as entirely honest. He said tea towels would be sold to the public at from 1./.11 to 2/9 each, and terry towels at from 5/6 to 8/9 each. * The Minister said the Government arranged to buy the towels when it foresaw the possibility of a serious shortage. At that: time no mill in England was engaged in the manufacture of towelling. Arrangements hail been made through trade organizations for the distribution of the towels on a basis of ensuring that supplies would be available in all parts of New Zealand. “The criticism that the Government had bought, al less advantageous prices than would have been possible had the purchase been made (if that were possible) through private commercial channels can hardly be substantiated.” said Mr Siillivaiu. “Housewives from their own experience, or others by observing tea towels on the shelves in retail stores at present, know that: it is not uncommon to see tea towels ranging at more than double the prices to be 'charged. The value of the terry towels has not even been challenged by anyone who has seen them.”

The transaction would not involve the Government in any loss, Mr. Sullivan said. The retail prices fully covered the cost: to the Government, plus all subsequent charges. That statement was confined for the time being to the towels that had been costed and distributed. He could not make any prophecies about future deliveries. The whole range had been sold to the trade and the trade was clamouring to the Ministry of Supply for more expeditious delivery. One trader who had been allocated £30,000 worth of towels had already sold out and was asking for more, though the whole of this quantity had riot yet. been delivered to I him because of the physical difficulties of handling. Mr. Sullivan said lie understood that some liigh-priced terry towels of Indian origin which were imported through the ordinary commercial channels' might be the cause of some of the criticism, having been mistaken for Ministry of Supply purchases.