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Hokitika Guardian, 12 November 1932, Page 5

MUST BE REDUCED

RETAIL PRICE LEVEL IN N.Z. MR COATES VERY EMPHATIC. WELLINGTON, November 10. An outspoken statement that woollen companies would have to reduce retail prices was made by the Rt. Hon. J. G. Coates, Minister in charge of the Customs Acts Amendment? Bill, in the House last evening. He was emphatic that the difference between the price of raw material and the, finished article was too great. Mr Coates was referring to remarks by Labour speakers concerning the necessity fro protecting the woollen industry. “It’s just about time we took this thing by the throat and said they must reduce prices,” Mr Coates said.

He added that he thought New Zealand could thank its lucky stars” that the Government had not been agreeable to toll policy advocated by some who thought we should raise o'lr tariffs to the level of Austnilln’e. Such a course could never he agreed ta by the present Government,

Qne woollen company in New Zea* land had just declared a dividend of 10 per cent., yet the Labour Party ■wanted to accord it more protection. The thing was too ridiculous to argue. It was time the whole question of retail prices was gone into. The Government said they had to be reduced. Mr W. J. Polosn (Govt., Stratford): We cannot protect inefficiency. Mr Coates: It is not good policy for me to talk,like this; it is bad policy. The Leader of the Opposition, Mr H. E. Holland: Wei*e you not advocating high prices at Ottawa? Mr Coates: Yes, but that was primary prices I was talking about. Now T am talking about retail prices. The lag between the two is too great.

Mr W. Nash (Lab. Hutt) said the Labour Party had never advocated that inefficient industries sjhould be protected in their inefficiency. Any requests for protection had been based on the ecnoomcal running of an industry. One justification for protection other than that of revenue was the maintenance of the standard of living in this country. Mr H. G. R, Mason (Lab., Auckland Suburbs) said New Zealand had been very careful regarding the amount of protection given the woollen industry, for in some mills the management was bad and the salesmanship was slipshod.