FIXED PRICES FOR BANANAS

Hawke's Bay Herald-Tribune, Issue 22, 10 February 1937, Page 4

FIXED PRICES FOR BANANAS

Firsi Indicaiion of Fruit Recommendations SH0CK T0 WHOLESALERS The announcement that the Government proposed to fix the prices oi -Samoan bananas, though directly afrectmg only one, possibly two firms in Hastings, came as a shock to many vvholesalers engaged in the fruit industry generally. The surprise was caused not so much by the decision to jix' banana prices aa by the fact that this decision was supposedly arrived at upon the recommenclation of the committee appointed to investigate the marketing of fruit und vegetables, this being tbe first public indication of the purport of reconuneudations of the committee. When interviewed by a Herald-Tri-bune representative several merchants were very critical of the action of the Government in giving effect, iu part at least, to tbe recommendations of the committee without first making public what tbe recommendations of the committee were. "There have been scores of commissions, speeial committees and mvestigations made during recent years oy the Government, but very rarely indeed have tbe recommendations put fonvard been given effect to except in a comparatively minor degree, and then only after every opportunity had been given those directly concerned the opportunity of discussing the recommendations and making representations .concerning them." said one merchant. "Before the Governrnent took any action it should have made public the whol© of recommendations of the committee. "Everybody concerned with the fruit mdustry, whether particularly interested iu the import of island fruit, the New Zealand export trade of apples, or local marketing of fruit, citrus fruits and vegetables has been waiting anxiously to hear tue results of the committee' s investigation. ' ' he said. "It was with a good deal of apprehension that I awaited the report, and .I know many others in New Zealand were of the sain© frame of mind as myself, for there appeared to be a distinct possibility that the Government was going to interfere very extensively with the fruit industry and introduce some radical changes." Trade Should Have Been Told "Naturally, it was expected that if the recommendations were of such a character as to prove unfair or unsatisfactory opportunity would be given tbe trade to make representations to the Government," he added. "Until the report of th© committee is made publio we don't know wher© we are, and if the Government is going to pick out little things and act upon them without giving us an opportunity even to discuss the pros and cons I can't seo our making much headway." "The Government went into the orange business, and now that it's going into the banana trade, or at least a portion of it, it cerfainly seems as if there is going to be more Government interference in other lines before long," said another merchant. "It is diffieult to comment on the action of the Government owing to the lack of details. Most certainly we should have been apprised of tbe recommendations of the investigating committee before any action was taken." Th* partieular merchant said that hf wa© only slightly interested in the banana trade and that as. far as he was concerned be doubted if the fixation of the price would make any difference jbo bim. This partibular branch of the business was merely a sideline, and except that his commission would be guaranteed he did uot expect to be affected .very much. "But I a111 very concerned about the futur© of apples." for that is the bulk of my business," h© said, "and if the Government is in the position of being able to act upon a portion of th© report of the committee, then ft should be able to act upon the whole of the report, which should first b© made known to the publio" Uncontrollable Factors A leading retailer expressed very grave doubts of th© practicability of the Government' s idea of fixing the price of bananas. ' "It might be possible to do it with th© green bananas," ue said, "but when it comes to the ripe oanana it would b© hopeless. Uncontrollable factors, such as the weather, tli© state of the local market, timo of buying, and th© condition of the fruit, enter into tbe business, and w© have to m.ake due allowance for these factors, which vary very considerably jn different districts and in different towns. And don't forget that tbe banana is only oue portion of our business, and a not very important part jn itself, though of course it is a very essential oart of tbe wbole business." The opinion that "it just couldn't be done" was voiced by auother retailer, who feared that while tbe wholesale merchants would be receiving a more or less guaranteed commission the retailer would be placed in the position of naving to bear very heavy losses on oecasions without being able to reeoup himself as local conditions changed. "It would mean grading the fruit, and when ft comes to grading bananas I just can't se© it being done," he said. ' 'Bananas blacken so very quickly at times that even we who have been in the business i'or years get caugbfc napping. We expect to, as a matter of fact, and accept it all as part of the business. Just how the Government or anyone else is going to assess waste I don't know. That is just one of the oig problems, and I am not exaggerating when I say that thousands of pounds have been spenf by private enterprise in efforts to reduce wastage which is costing the industry many more thousands every year."