PROPOSALS FOR CONTROL OF MEAT PRICESTHREE ALTERNATIVES

Grey River Argus, 17 November 1948, Page 7

PROPOSALS FOR CONTROL OF MEAT PRICES—THREE ALTERNATIVES

WELLINGTON, Nov. 16. Three alternatives for the control and readjustment of both wholesale and retail meat prices were submitted to the Price Tribunal to-day by Mr H. L Wise, director of the Price Control Division of the Department of Industries and Commerce. A summary of the findings of the division after an investigation into the industry said it appeared that the retail butchers, due either to too low retail prices or too high wholesale prices, had sufferel a deterioration in their trading position, and to correct this an overall readjustment in the return, of the order of one farthing per lb. of vended meat, was required. The retailer’s position could be met either by adjusting the retail prices accordingly or by fixing maximum wholesale prices at a level —lower than the present—which would enable the restoration of the 1947-48 trading position. WHOLESALE ORDER Of the three proposals put before the tribunal, the division considered that the issuing of a wholesale “on the hook” price order was preferable, so that if could operate in conjunction with the retail price orders. “Retail prices are already high and the solution to the problem, with which the industi’y is confronted, in the light of rising costs and export prices, rests, in the views of the division, not in further substantial retail price increases, but in stabilising wholesale prices,” the submissions added. “This is not an insuperable task nor undue interference with the stock markets, and it is in th e interest of the consumers that the ,local wholesale basic prices should relate more closely to the prices obtained for export, meats and that the wholesale basic prices should be uniform, district bv district. NOT AT CONSUMER’S COST “If the tribunal considered that the retailer’s nosition should not be corrected at the expense of the consumers, the arbitrary fixing of the wholesale prices at a lower ' level than at present should be adopted.” A lengthy statement, with an analysis of the prices in the meat industry, was then read Dy Mr Wise. “The retail butchers contend that td bind them to retail prices without fixing; the wholesale cost of meat imposes an undue financial hardship during periods og high costs,” continued the division’s statement. The alternatives nut before the tribunal were then given as:— 1. Means of relating retail prices to the “wholesale basic cost,” which would be uncontrolled. In the event of the actual wholesale costs exceeding “the wholesale basic cost,” a butcher would be authorised to add to his retail price the amount of the increase. 2. The free oneration of livestock and wholesale prices as at present would continue and the butchers would be permitted to fixe their retail prices on the basis of the wholesale costs in the shop as they actually occurred. In other words—a “mark up” system. 3. The fixing of both wholesale “on the hook’ prices and appropriate retail prices bv nrice orders.