TEN PER CENT OR TWENTY?

Shannon News, 24 March 1925, Page 3

TEN PER CENT OR TWENTY?

WHAT. COx\STITU.TES FAIR TRADING CHARGES. POWER; BOARD'S PROBLEM.

, The question of what is a fair charge aoove cost price, on goods supplied to consumers, was discussed at Tuesday's meeting of uie Horowneuua power Board as the result of an inquiry by Mr A. Brown as to the isoaid's pofioy regarding the purchase and sale of ranges and motors. He stated that he had been told by the Engineer that 10 per cent, pront to the Board was a lair one. He had now received a bill wherein 20 per cent, was charged. A range was quoted to him at £32 and he was now charged £35. He understood that tile chairman and treasurer had fixed tne price, which he considered was wrong; Beard should nave done tins, ana he now wished tQ have a definite statement on the point. Tile chairman (Mr G. A. Moms) said he Had gone into the question of price very closely with tiie treasurer and found that the price charged was the smallest that could be made so as not to cause an actual loss to the Board. He felt that every department of toe Board's activities should pay for itself, or at any rate make no loss. The charges made were for actual outlay incurred by the Board and were not a profit at' all.

Mr Seifert said that a percentage had to be put on for the covering of the cost of keeping ranges in stock, and for interest on outstanding money.

Mr Mackay said that «s a member 01 the Board be had been approached by people who asked him what the price oif ranges was, and had quoted them at £32. He now found that he had given incorrect information. It was the chairman's duty to have brought up the question before the Board so that this would have been obviated* Moreover, at the cooking demonstration at Otaki their demonstrator had been quoting ranges at a certain price plus 10 per cent. Other firms had been quoting the same ranges less this percentage, which was perhaps natural as they would wish to undersell. Personally he would prefer to have the Board put in his range, as it was to tihe Board's interest that they should keep the range in working oirder so that "juice" would be consumed. He felt that the chairman had placed the members in a false position. The. chairman said that he, had been present" l when members of the Board had yisited the power station and inspected the ranges. The Engineer had stated at that time that they could be sold at approximately £32., but no fixed price had been set. When he and the treasurer had gone into the matter later, they had found that 20 per cent, would be a fair charge for installation and he Wished to. emphasise that no. profit was being made. Mr Brown reiterated be had been quoted definitely by, Mr .lack, at £22, and be considered that this was* mis " lcading clients. He moved that the Board charge only 10 per cent, on import cost. Mr Mackay seconded tins pro. forma. The treasurer explained that there had been a few consignment stoves which had been obtained at a very low price, and which were sold at a correspondingly low figure. The larger consignment had. cost more, and the papers had not come to hand until about 8 weeks ago. The estimate for sale had been made on the previous lot. The present ranges were being imported at £29. Mr Barber said that £6 seemed a big charge to put on a £29 range. Mr Ross considered that the whole matter of charges should be fully gone into and a report be brought down before the Board. They might find that it was necessary to charge 20 per cent, on ranges, but it certa&ily would not be necessary to charge 20 per cent, on motors. Mr Gunning recommended that the Board get in touch with the manufacturers of ranges, rather than buy them from the New Zealand agents. It was a dangerous thing, he stated, to purchase large numbers of ranges at one time as improvements might be made which would put the present types out qf date. The chairman said that every Power Board which had taken up tradinghad made a loss and any such loss would have to be spread over the whole of the people in the district, which was not fair. It must be remembered that they would be standing out of their money for a lengthy period after the Board itself had to pay for the ranges. Interest would have to be paid on this money and it was only fair that a charge should be made to cover this amount. All these things had tq bo taken into consideration when fixing tne price. He would have to oppose Mr Brown's motion, but he Would like to say definitely that he regretted exceedingly that any mistake or misconception had occurred.

Mr Mackay suggested that Mr Brown withdraw his resolution and substitute another to the effect ttiat the matter be referred to the Finance Committee, to go into the charges which should be made. He quite appreciated the fact Uhat ranges might go out of date and he thought that in future the Board should purchase only such ranges as they got orders tor. Mr Brown agreed to this.

The chairman said that now tin at they had gone into the buying of ranges and motors, they would have to go on with it, in fairness to consumers. The matter would be very carefully gone into by the Finance Committee and the Engineer, and the lowest possible price would be fixed Mr Ross suggested that ranges should be quoted ex-store. Any charges for installation should be quoted extra. In this way the man who was close to the store would get the benefit of his position.

The chairman said that the result of this would be to open up new channels of dispute. It would be much better to make a definite charge. Mr Mackay then moved that the matter of prices of ranges be referred

to the Engineer, Finance Committee, and secretary to bring down a report at next moeting.—Carried.