COOK ISLANDS TRADE

Hawke's Bay Herald-Tribune, Issue 149, 12 July 1937, Page 7

COOK ISLANDS TRADE

— FreaB ABBOciation.)

Government Denies Making Big Profits "UTTERLY ABSURD CHARGE"

( By I'tlegraph

WELLiNGTON, Last Night. 1 Beplying to the statement of a Wel*J lington merchant that the Government i had made a profit of £28,000 for the' season on its trading in Cook Island j oranges the acting-Minister of External I AfEairs, Hon. F. Langstone, said on Saturday, when asked the reasons why the Government had talcen control of Cook Islands fruit, that the allegation was utterly absurd. In fixing tho wholesale prices for sale to retailers the Government 's object had simply been to cover the landed cost without making any profit for the Government. •'The landed cost of the fruit is: approxiniately 15s a case on the wharl" at Auckland, which makes practically no allowance for wastage or provision for eventualities of any sort," said Mr. Langstone. "It would be noted also that for the early shipments this season the cases used were those taken over from the local trading concerns at a cost of over 3s each. To 15s a case must be added the brokers' commission in New Zealand and the cost of transport from Auckland to the southern centres. Far from making a profit of from 3s 5d to 9s 5d a case the operations of the Government have up to date resulted in a substantial loss. "I think the present indications are that the seheme eventually will be suecossful, but uaturally in tho first year many difficulties arisc," concluded Mr. Langstone. "With the experience gained this year, however, I i'ccl that we should in future be able to handle the fruit in a manner which will give the grower a Teasonable return for his effort and ensure that the purcliaser in New Zealand will receive sound fruit at a reasonable price."