RETAIL PRICES

Evening Post, Volume CXXVIII, Issue 117, 14 November 1939, Page 10

RETAIL PRICES

MARGIN OF PROFIT

POWERS OF TRIBUNAL

Reference was made today by Mr. T. O. Bishop, secretary of the New Zealand Federation of Drapers^ Clothiers, and Boot Retailers, to'a recent article in the "New Zealand Draper" which appeared in yesterday's "Evening Post." It was stated in the comment that "The trade resents limitation of its margin of profit to the mere addition of rises in costs. If the prices of goods have been f doubled, the retailer is only.allowed half the return on his doubled outlay of capital, and his doubled risk' of loss. Yet producers of goods overseas or in New Zealand have been allowed to pass on their increases in full to the retailer."

Mr. Bishop said the writer had evidently overlooked the fact that the Minister of Industries and Commerce had recently made a statement io the effect that wider powers were now being given to the Pries' Investigation Tribunal which would enable them, in proper cases, to allow a mai-gin of profit on increased costs, and even in some cases' .replacement cost. This announcement Had been w,elcorned by the members of the federation, who had no desire to make money out of war conditions, but" only to keep their businesses intact. Representatives of the drapers and boot retailers had had discussions with the Tribunal, the members of which fully appreciated the business conditions which affected those trades. The federation was at the present time closely in touch with the Tribunal, and he had every hope that arrangements would be made for the working of the Price Stabilisation Regulations in such a manner as, while protecting the public from any increases in price which were unjustified, would enable retailers to carry on their businesses with as little inconvenience as possible and keep their staffs employed. N The federation would work wholeheartedly with the members of the Tribunal in carrying out the very important and difficult duties which had fallen to them to discharge.