PRICE INQUIRY

Gisborne Herald, Volume LXIX, Issue 20659, 9 January 1942, Page 3

PRICE INQUIRY

SALE OF VEGETABLES TRIBUNAL’S FINDINGS COMMITTEE PROPOSED (Per Press Association.) WELLINGTON, this day. The Minister of Industries and Commerce, the Hon. D. G. Sullivan, released for publication a report submitted to him by the Price Tribunal following the recent inquiry it made into the causes of high prices of vegetables. Mr. Sullivan stated that the report had been submitted to the • Government for consideration and it had been decided by the Government to set up a special inter-departmental committee to function under' tire administration of the Minister of Marketing, the Hon. J. G. Barclay, consisting of Representatives of the Departments of Agriculture, Marketing, and Industries and Commerce. The work of the inter-departmental, committee would be to study the tribunal’s report, and submit recommendations to the Cabinet through Mr. Barclay from time to time concerning the implementing of the report.

Upon consideration of the whole of the material before it, the tribunal found the causes for the present high prices of vegetables were:— (1) The extraordinary wet and cold season which had been prolonged beyond normal , and had resulted in a much lessened production. (2) The removal from civilian life mto military service of many men employed by market gardeners and many others who would otherwise had done work connected with the production of vegetables in home gardens and the difficulty of obtaining skilled labour in replacement. (3) The increase in the number of people who live in flats and, as a general rule,- are not in occupation of any land on which vegetables can be grown. Canned Supplies For Forces (4) The steps which have necessarily been taken by the food controller for canning in large quantities of vegetables, particularly for the supply of our armed forces abroad and in this country. (5) The heavy demands under the present circumstances of the army, navy, and air force for the supply of fresh vegetables for our armed forces. (6) The demand for large quantities of vegetables to be taken on board troopships and other ships called calling at New Zealand ports. (7) So far as the city of Wellington is concerned, the much lessened production of vegetables in the Hutt Valley is owing to the fact that about 250 acres of land have recently been icquired for housing purposes. (8) Decreased production owing to the increased ravages of pests and disease. (9) The absence of planned production by market gardeners due to lack of organisation of their industry. (10) The existence of too many retail shops, resulting in the overhead being disproportionately high. (11) The difficulty of instituting any proper and reasonable system of costing, resulting in some retailers charging the highest price they can get, having regard to supply and demand. (12) The practice adopted by retailers generally of selling certain classes of vegetables by .bunch, regardless of weight. (13) The system of auctioning at the time of shortage tended to increase prices as the result of competition for available supplies. (14) The supply of carrots available in the markets has been lessened considerably by the demands of rabbiters for poisoning purposes. Enlistment of Gardeners Discussing the effect of the enlistment of market gardeners for military service, the tribunal says that Mr. W. Wah, secretary of the Wellington Chinese Retail Fruiterers’ Association, had suggested temporary permits to selected Chinese to come to the Dominion for employment on market gardens. The tribunal considered that such a course might meet the difficulty but should not be resorted to if the situation could be adequately dealt with by our own people. Evidence was given before the tribunal that the lessened production of vegetables by reason of the taking of Hutt Valley land for housing had been a factor in the present abnormal prices for vegetables in Wellington. No doubt other land would have to be taken for housing in future, but the tribunal recommended, if it possible to avoid it, that further land suitable for market’ gardening should not be taken.

The tribunal, after discussing the evidence relating to the lack of organisation among market gardeners, recommended considerationof the provision, either temporarily by regulation or permanently by Statute, for registration of commercial growers working an half-acre or more of land and the setting up of a council comprising market gardeners, departmental officers and other interested parties with a view to bringing the industry into a condition of planned production and marketing. Auctioneering System’s Defects

After full consideration of the evidence, the tribunal concludes that there is a serious defect in the auctioneering system, namely, that in times of shortage, competition forces prices unduly high, while in times of glut the consumer is assisted. During the last few months the position had been made worse by the fact that buyers for the armed forces had been large- purchasers, and it is believed in some cases they had actually bid against each other. The auctioneering system, however, had the great advantage of bringing the buyer and seller together quickly. / The tribunal expressed the opinion: (1) Every encouragement should be given to the growers, individually or collectively, to sell direct to the retailers and to the consumer with a view to eliminating intermediate costs; (2) it is highly undesirable that auctioneers should also act as merchants because their interests as merchants are almost certain to conflict with their duties to the vendor as auctioneer. The tribunal will continue to explore the practicability of fixing maximum prices in respect of certain classes of less perishable vegetables, especially in such circumstances as have existed this season where the creation of a “ceiling” is necessary to protect the public. The tribunal strongly urges that encouragement be given to the home growing of vegetables by householders.