THE FAIR PRICE

Evening Post, Volume CXIV, Issue 125, 23 November 1932, Page 9

THE FAIR PRICE

DISCREET INQUIRIES

GOVERNMENT ACTIVITIES

There is no more discreet and silent service in New Zealand than the investigating staff maintained by the Department of Industries and Commerce. It is seldom heard of and even when a case is brought before the Courts as the result of its investigations, little is heard of the work which is being carried on. continuously by the Department.

The head of the Department (the Hon. R. Masters), is. in full sympathy with the desire of the Government to reduce all costs and has instructed his staff to make every endeavour to keep down the difference between wholesale and retail costs. The principal Act ■under which action is taken is the Commercial Trusts Act, and any move ment to fix prices so as to- produce excess profits is quickly investigated. If an investigation proves that the price of a commodity should be lower, then the position is pointed out to the manufacturer, distributor, wholesaler or retailer, whichever is responsible, and he is invited to . reduce his price. The Department's methods are so sound that it is only once in the course of years that the assistance of the courts has to be invoked in order to produce the desired effects.

One notable example has been the way in which bread prices in the principal towns have been investigated. Where there has been severe competition and the price has been brought down by the ordinary methods, there has been no need for action, but where there has been anything in the nature of a ring to maintain a price higher than the circumstances warrant, the Department has been instrumental in reducing the price to such a level that will give not more than a fair return to all concerned.

At the present time, the Department is receiving many complaints, mainly on account of the fact that purchasers wish to see prices generally reduced. All these are- promptly investigated and in. large numbers of eases satisfactory results have been obtained. Of course, there are many complaints which are not justified, but every one is closely investigated. If there is no occasion to take action, the- matter is quietly dropped.

The Minister and the Department do not boast about ' their, activities, but are content to maintain a watching brief in order to see that prices are kept at the lowest economic level.