PRICE CUTTING

Evening Star, Issue 19786, 9 February 1928, Page 16

PRICE CUTTING

REMEDY SOUGHT FOR EVIL MINISTER CAUTIOUS [Per United Press Association.] NELSON, February 8. At the request of'the Master Grocers’ Conference, the Minister of Industries and Commerce (Mr A. D. M'Lcod) was present to-day to hear the 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 adopt 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 wholehearted 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 Heaton Barker) said that even theGovernment transgressed, because when coming from Auckland they saw in the railway refreshment rooms a certain brand of tobacco at Is 6d per tin, a price at which no grocer could sell. Mr Bisloy: Docs the Government pay Customs duty? Continuing, Mr Barker said they contended that the manufacturer had an inalienable 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. It was easy to say as the Commission on the P.A.T.A. did: “Thou shall not,” 1 but they wanted to know what they could do to got a fair return for distributing the necessaries of life. No steps apparently were taken to deal with one evil of the day—time payment. In such cases up to 31 per cent, was charged for accommodation. The grocers did not seek that. They were restricted in fixing tlie prices of foodstuffs. Would it not be possible as in Queensland to make prices subject to Government approval. The grocers were agreeable to recognise tho difference between tho “cash and carry” grocers and those who delivered goods. The ovils of pricecutting were on the increase, and, that being admitted, they had a right to ask the Government to interfere. To a very large extent the average price cutter had no regard for his fellows or for increasing the status of the trade in which conference was interested. He hoped they would hear of the present Minister of Industries and , Commerce introducing a Hill. After a general discussion, 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 tho people of New,Zealand were fair-minded, and there was no general desire that people should trade in a manner not yielding a reasonable profit both to tho employee and the employer. There was a feeling in the minds of the primary producers that the man who started in a big way of business, kept a big staff going, and had perhaps a motor car or two, was a millionaire, and was making a fortune, and some control over him was needed. He held, a dual position as Minister of Industries and Commerce, and ho tried to keep the balance even, when considering the statement of these conflicting interests. His advice to each was that they should try to understand each other better. Generally speaking, manufacturers and retailers, through their varied organisations, had done their share in trying to get into touch with tho man on tho laud. Taken big and large, the farmers (not some of their so-called representatives) were reasonable, and were prepared to listen to the, views of tho man in town. He had listened to their discussion. After all, their request involved a, matter ot policy. When his leader took up the reins of government- - he did not know whether that pave him his mnpnrity, hut to some extent tho people gave him the majority because of it—fie made his policy “more business in Government; loss Government in business.” It was not a job that could ho done in a day, lint the aim of Cabinet was to have ns little interference with business by tlm Government as, possible. That was in the mind of their leader and of all the members of the Cabinet,, and he iv,anted them in understand, it clearly. Ite thanked them for putting before him their views, which would have full consideration.