REGULATING PRICES.

Ashburton Guardian, Volume XXXIX, Issue 9545, 10 March 1919, Page 3

REGULATING PRICES.

GOVERNMENT'S DIFFICULTIES,

WELLINGTON, March 7. The Hon. W. D. S. MaeDonald as president of the Board of Trade is having a lively realisation of the difficulties of State regulation of prices. There is a demand for the export of New Zealand potatoes to Australia owing, to the severe shortage there. Similarly New Zealand hides could bo sold, it is reported, at as much as Is 4d a pound for export, out the question which Mr MaeDonald is settling is whether famine prices in other countries are going to ue allowed to send up the local prices of New Zealand produce, to the name level. "Because there is a famine in any product," he remarked, "it should not follow that the New Zealand consumer should have to pay that famine price for produce raised in this country ■/' Explaining first the reason why the Government is regulating the export of potatoes the Minister denied that their export is absolutely prohibited. "Ji there is a surplus oi potatoes for New Zealand requirements," he said, "and we have sufficient potatoes to permit of export, permits will be given. it is the same with oats and other products. Owing to the tremendous difficulties in transport it would be suicidal to send our products to other countries and eventually bring them back for our own consumption. We want to help the producer in every way, but once the price goes beyond a reasonable point we must protect the consumer. As for the complaints from Auckland regarding potatoes, it is curious that the North Island is buying southern potatoes at the present moment. There is undoubtedly a shortage in Australia and buyers are oiferiug high prices for export. As Minister lor Agriculture 1 recogniso the right of the producer to a reasonable price, but he cannot expect to be allowed to' export until we ascertain derimiely whether we have sufficient potatoes in the country for our own requirements." -

(Questioned regarding the.progress of the scheme to regulate the price of the loaf, Mr 'MaeDonald said that the plans were not quite complete! There was some difficulty between the Government" and the farmers, who were strongly of the opinion that they should get the market price for landing Australian wheat, plus s'd duty, but it is Statute Law that the, Government does not pay duty. "I am not going to discuss-the matter further," said the Minister, "than to say that so far as we can ascertain that by providing Australian wheat for the North Island (it cost eightpence a bushel to get wheat from the south to the north), farmers are getting the full market value of 6s 6d, for with the cost of transport it would be 7s Id, whereas we can land Australian wheat in the North Island at 6s sd. The farmer has no reason to complain about the Government, though he may complainl about climatic conditions and labour complications. The next difficulty," continued the Minister, "is that since these arrangements were made millers are faced with a request from their hands for an increase in wages, which must be passed on to the bakers, who in turn maintain that they are faced with the same difficulty, their cost of production having gone up since last'year. It" is generally agreed to lower the price. of flour to the bakers to £15 instead of £15 I.os per ton., The bakers are still considering' whetiier there should be a fixed price for house delivery. It is not proposed to interfere with the price of delivery over the counter, but it is a Question whether an increase for house delivery can be allowed.'!

Still another problem mentioned by the Minister is a request regarding the millers' "carry-over" from the 1917----1918 season, that it should be marketed at 1918-1919 prices, which, says the Minister, would give them a handsome profit. The question to be settled is whether the last year's output should be marketed at last year's prices. It affects one or two millers, and the Minister is not inclined to treat one different from the other.

Another interesting chain of economic circumstance was related by the Minister when discussing the position of the standardised boot scheme. " We had arrived at an agreement with the boot manufacturers regarding .standardised boots." said the Minister, " when the manufacturers rightly said, ' If you are tioins to fix the price of boots you must necessarily fix the price of leather.' Thou the tanners said, ' If you fix the price of leather you must necessarily fix the price of hides.' We gazetted'the price for hides at Is Id for the best. down to Hid, the same as the. Imperial purchase scale. We arc not prohibiting the export altogether, but we say we want sufficient hides for the reqiiircmentß of the New Zealand tanners. If the farmers and freezing companies offer the tanners hides at .the schedule prices, and they fill all requirements,' we will then permit the export of the ro.mainder. As president of the Board of Trade. I feel that if there is a fa/nine price for hides in another country for a few months, it should not. be allowed to disorganise., the whole of the 'New Zealand frade."

Asked when standardised hoots would be marketed, the Minister said: "The Board of Trade goes to Auckland next week to settle the final details, and the scheme will come into operation almost immediately."

Despite all his difficulties, the Ministor declared" that the great majority of those concerned were willing to co-