PRICE CONTROL.

Ashburton Guardian, Volume 59, Issue 39, 25 November 1938, Page 5

PRICE CONTROL.

THE NEW ZEALAND SYSTEM. REPORT IN AUSTRALIA. (United Press Association —Copyright.) SYDNEY, November 24. In his report on the New Zealand system of controlling commodity and other prices, the New South Males Auditor-General (Mr John Spence) expresses the opinion that the administi ative control of prices and industry cannot be altogether free from the suspicion of political influence. The report which was tabled in the Legislative Assembly last night, states that while prices cannot be kept down permanently in the fact of rising costs, the existence of departmental machinery had acted as a corrective to excessive increases, and as a deterrent to the exploitation of the consumer. “The impression I formed is that the control of prices and industry in New Zealand can create many difficulties for a Government, and that the real test of its effectiveness and value is still to come. The establishment and maintenance of machinery for price-control so that it may he available for use when required is valuable blit it the objective is (lie control of prices only, the machinery should be used mainly to regulate the prices of necessaries and pot in motion only when it has been demonstrated that Government intervention is advisable in the public interest.”

Mr Spence added that the activities of the New Zealand Department of lndutries and Commerce had served as a brake on increasing prices, but under the influence of higher wages, shorter hours and more liberal working conditions, both costs and prices had undoubtedly risen. On the other hand, the machinery for the exclusive purchase and sale of flour had worked effectively and efficiently. M,. Spence commented upon the elimination of competition in tin* milling trade, and gave it- as his opinion that the system at present employed should reduce selling and distiibuton costs and also keep down the price of flom.