H.—44a.

It is appropriate here to comment upon export prices, and refer to Appendix H, where are shown f.o.b. costs, realization on f.o.b. sales, and profit margins secured upon five different packs of snapper and one of tarakihi. These profit margins are considered to be the maximum attainable under present conditions, seeing that in many cases the percentage of wastage might be greater than the figures shown, which are arrived at as a result of actual tests undertaken by Committee members. Moreover, the Thames people are faced with an extra cost of Jd. per pound freight from Thames, payment having been made f.o.b. Auckland. If due and not unreasonable allowance, say, 0-40 d. on cost (leaving a profit margin of 0-60 d.), is made for overhead expenditure upon green fish passed through the depots to retailers, it will be seen that a lesser margin of profit is realized upon any export fish than upon local fish sold for local consumption —the highest based upon the same green weight of 100 lb. being 0-46 d. per pound and only 0-33 d. upon snapper fillets (wings off), the principal fish exported. (14) Fishermen supplying Retailers direct: This is not a problem of major importance, but it is a source of irritation to wholesalers, who find retailers competing for their (the wholesalers') supplies in times of scarcity when all available quantities are wanted for general distribution. A case in point is Itaipara flounder forwarded to the wholesaler when in plentiful supply and to the retailer when scarce. In the opinion of the Committee the wholesalers should have the right to handle all fish except in isolated instances where a retailer owns his own fishing-vessel. (15) Establishment of New Markets : See under separate heading of " Licensing." Reverting to the question of reducing the number of markets operating, it is significant that the majority of these realize that their numbers are too great both in Auckland and Thames, and that, some readjustment is essential to enable the industry to attain a greater measure of efficiency. In Thames, in particular, some form of an amalgamation of interests has been mooted for a number of years, and while there the Committee called a meeting of the four markets concerned to discuss ways and means by which such a merging could be put into effect. A complete review of the position was made not only in regard to the financial position of the companies and their fixed assets, but to the supplies of fish, catching methods, and marketing, both locally and overseas. In Auckland the representations submitted centred round a discussion on some scheme whereby two or three units would be sufficient to enable the industry to be conducted with the greatest efficiency, and it was realized that some form of compensation must necessarily be paid to those units falling out of the wholesale trade. Following upon a full consideration of the factors involved, it would appear that the maximum efficiency and service could probably be obtained only per medium of a central depot, State or Municipally-owned, but such a revolutionary change-over in handling and distribution would be rather drastic in its effect and possibly unwarranted in application. The alternative appears to be the retention of two or, at the most, three of the more efficient wholesale units at present established. These would require reconstruction. This would mean that there would be two or three, units only, and in turn there must be unification in the activities of these as between or amongst themselves. Retail. —The membership of the Auckland Fish Retailers' Association embraces the majority of fishmongers in Auckland City and suburbs. Amongst other endeavours tending towards the maintenance of the welfare of its members' trade, the association has attempted to eliminate the evils of price-cutting, but has not altogether been successful in this respect, mainly for the reason that nonmembers of the association refuse to fall in with its policy, and no disciplinary measures can very well be taken against them by the organized body. Reference has already been made to the retailers' position following upon the increase in wholesale prices in November, 1936, and representations in the main centred round the need for some reduction in these prices in order that retail prices might be reduced in turn and thus result in an increase in turnover. These representations are answered by our recommendations in respect of an immediate reduction in wholesale prices within the city area, and it is expected that the retailors will respond by reducing their prices in the proportion they bear to wholesale. Questions concerning the utilization of a greater quantity of rough fish and the tarakihi versus snapper position have been covered elsewhere in this report. Further representations were submitted dealing with : — (1) The multiplicity of shops. (2) The price spread between returns to the fishermen and retail prices. (3) The competition from wholesalers'retail-shops. (4) The sale of all fish by weight. (5) The licensing of retail shops. (6) The fixation of wholesale and retail prices. Dealing with these questions together, the following comment is made : A number of witnesses have referred to what they regard as an uneconomic position in respect of the number of retail fishshops—most of them small —in Auckland City and suburbs (these are approximately one hundred in number), and the effect of their multiplicity upon the turnover of each. In some localities the shops are more or less grouped and competition for custom is so keen that the tendency, more so than in other places, has been to cut prices below the levels agreed upon by association members as what they consider fair and reasonable. Retailers have themselves complained of the competition they experience from retail shops conducted by wholesalers not only in the city, but at the wholesalers' own depots. From a normal trading point of view this is not considered a serious complaint, particularly in view of tile fact that these wholesalers' retail-shops are showing a tendency to decrease in number, the principal reason for this being, in the suburbs at any rate, that they have to compete with the " family " fishmonger, who is not under the obligation of complying in full with the provisions of the

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