COSTS AND SUPPLY

Wairarapa Times-Age, 28 January 1941, Page 9

COSTS AND SUPPLY

TRADERS DIFFICULTIES I . — ' DEVELOPMENT OF INDUSTRIES ! — ADDRESS BY MINISTER. | 'By Telegraph—Press Association.* AUCKLAND. January 27. | I Difficulties facing the Dominion through the rising cost of goods and I questions of supply were discussed by H the Minister of Supply. Mr Sullivan, j' in an address to the New Zealand Master Grocers 'Federation. Mr Sullivan said that tip the | jpresent pessimistic anticipations had not been realised, but today, because l of shipping scarcity and the supply . situation generally arising from ‘ die ! war. difficulties had to be faced. The problem would be modified > through the development of new in- ’ dustries. Mr Sullivan said about I 1000 new factories had been establish- i ed and between 700 and 750 of these j were quite substantial. Many were■ being put into operation by overseas! interests. In the past few years more ; than 60 factories had come into being | engaged in the production of lines I handled by grocers. The question of prices and price con- ' trol was inseparable from the question j of supply, continued the Minister. If i turnover were reduced, some compen- ' sation had to be made if traders were i to remain in business.

Mr Sullivan said his officers had ad- I vised him that costs tn the grocery I trade had not yet reached a poin! > when it would be necessary to advance j prices. The Minister said he was re- ' sponsible for the formula upon which j the Price Tribunal acted regarding re- i placement value and other principles. ! The tribunal had power, however, to i depart from otherwise rigid principles j in cases of individual hardship. It I might be necessary to extend this con- ! cession to hardship affecting the in- I dustrv,

"When we are satisfied from the facts and figures that you have to be given further consideration to enable you to carry on, you can res* assured you will not be let down," added Mr Sullivan, "In such case action will be taken to enable you to continue in business." Mr 1. A. L. Oliver, in moving a vote

of thanks to the Minister for his address, claimed that the stock position in the grocery trade had deteriorated to an extent beyond that stated by Mr Sullivan. Conditions now made it difficult to operate successfully. The Minister replied that he acted on exact information obtained in confidential returns.