COST OF LIVING

Ashburton Guardian, Volume 60, Issue 36, 22 November 1939, Page 6

COST OF LIVING

DENIAL OF AN INCREASE. MINISTER QUOTES STATISTICS. THE REGULATION OF PRICES. (Per Press Association). CHRISTCHURCH. This Day. . Commenting to-day on the cost of living, the Minister of Supply (the Hon. D. G. Sullivan) said that recently he mentioned that all groups of the index of wholesale prices had remained at the same level, namely, 995 points. These figures were questioned, and suggestions were made that recourse to the food groups in the index figures would reveal that instead of prices having remained stable there had been a decided increase in costs. The full table was now available, and it showed that the retail prices index fell by one point during September—from 1060 to 1059 points—compared with the previous month. This fall was caused by a fall of 36 points in the dairy produce group, particularly in the retail prices for eggs and, in some towns, for milk.

The statistics showed that there had been an increase of nine points in groceries and of 18 points in the meat groups. So far as the meat group was concerned the rise was seasonal, and authority to increase prices had been granted by the Price Investigation Tribunal to meet the increased costs of supplies at the various markets. So far as the increases in the index for groceries was concerned, it should be remembered, added Mr Sullivan, that prices for many commodities that were imported had risen owing t-o the crisis preceding the outbreak of war and to the situation created by the war. The Government could not control these factors, but it could control the extent to which prices were permitted to rise. This was being very efficiently done by the Price Investigation Tribunal, which Avas holding the balance betAveen all sections of the community. “I Avould like to make it clear that the regulations for the stabilisation of prices make it an offence to raise the level of prices beyond those riding on September 1 last Avithont the specific permission of the tribunal,” said Mr Sullivan. This applied to the retailer as Avell as to the Avholesaler, and it should be clearly understood that application for permission to raise prices must he made. The tribunal avoulc! expedite replies to requests and would telegraph the necessary authority where circumstances made this method essential. Effective control of prices must he maintained and the operations of the tribunal have had the effect of keeping unavoidable increases within reasonable limits. To facilitate the completion of granting permission or otherwise, the tribunal had decided, in several instances, to recognise representations from trade groups or organisations such at the Drapers’ Federation, Grocers’ Federation, etc., as being applicable to the entire trade. This had speeded up the work. Another system adopted had been that of permitting applications to be made to district officers of the Department of Industries and Commerce at Auckland, Wellington, Christchurch or Dunedin.