COST OF LIVING.

Auckland Star, Volume XLVIII, Issue 247, 16 October 1917, Page 6

COST OF LIVING.

SELECT COMMITTEE'S PROPOSALS. POOD CONTROLLER AND STATE TRADING. EQUALISATION OF PRICES. Wlln -HAI.i. PAY I.U--K-: 1.1 \ Ki.V PARLIAMENTARY ' "NTUoVKR-jy. ihy T-ir-grar': - Parliamentary Reporter.) WELLINGTON". Mou.l.iy. T.r >ele« t < ommitl.'i- set ti|i by the Government to inquire into and report en t.ie en-tot living question made its refrnmcndatioiw to th.- House to-niisht a=. fo: nw« : — 1. That a Kiio: i ontroller br forthwith a;.p-.intr.l. who -hail have a seat in v ai>inet. ami 111 whom >h:ill ho v,--tei «■',"• ial plenary powcrr- 01 ailminir-tia-tmn to . riii'ii,. him to deal promptly imui time t.. time nitli problems affectlivina. with power to control and regulate tho |>ri.i-= ..1 fon.l -iii.i £iipnliee au.i J any other neee-iane- i.i !i>".\ J. Tl.ai the ..ii-tiiution. dutic,. an.l jM.iver, .)! tin- Hoard ot Ira-!,- 1..' jim-nded t.> ni.—i the ;i!ton-.l • mi.ii tiutte 1 o'i->'.|U.-nt upon tin- Kppointiiifiit nt .1 Ko.i.i 1 oiltrollel. :. That *u:i-.<eei<on J. m section 2 nf 1 iho I orumenia! Aft. I.HO. an.! I 1-. h.-dulr to nai.l A.-t a~ amende 1 ivy I •■•■etion 1- "t tin- dipt 01 Living Act.l !■'!.-.. -[.-. ifyin s th. j.. «1« to vliichj The I ommer. iil Tr;:-t- At apt lie*, ho :>p.-.de.l. thu- niacin;: the provisions • •1 the la~t-meutioned A t iiirii-t.il a;:airi>t the formation o: and combine- apply to any goods whatsoever. PROTECTION A<;A!\-T SHORT WEli.niT. 4. Tliat in "I-,!.-: t.i protect the "' public from short ami snort measure. leci~lation !>e passe,l pro- ■ Ti'.,nt; iliat all or ot'ier receptacle* in which -..od« ha»v been put up ready for .-ale shall have clearly ciarke-1 thereon the net weight and net quantity ot contained therein. .1. That encouragement he given hy legislation .ml otherwise tv the forma- j tion an i carryinc on of co-operative SiHieti.- for rh" jL-triUition. ot aimBH'diti* j > of all kindf. fi. That where ut-.-essary in the interest? of the community the Onverndent »houM undertake the purchase j and wholesale .m.i r.-tail distribution of goo Is by bale and otherwise, and that the necessary legislation be pas*ed to ena 'le thin to he <ione. '.. T'nat vigorous f-teps be taken to develop the industry throughs- out. tile Dominion with « view--to obtaining a cheap ami plentiful supply of fish ior tiie community. STA*E-CONTKOLLED "TJEAMERS. 5. That the -(uestion of o-ierbea* local -hi&pinw being of paramount importance, the Government should take into consideration the advisability of p«tablishinjf a ?«tate-eont rolled cooperative line of steamers for the carnal ot imports and exports of the Dominion an.l for meeting the requirement*- 01 infr-coastal and Islands trader. 1 n■ T.iat in nruev to cU«k more efl'ectivelv any ia.-c of unfair increase in rents offer pre-war rate-, tlie provisions of part ! of the War Legislation _\mi-r,.iment Act. IB hi. '<•<■ amende.!, ami tiiat in ca-es where rents have W< -n increa.-t-d in com invention of the t,rm- ot tin- A<t. a .luty !* cast upoi; the l-abour Department to investigate and -h,. r ,. iiei-est-ary sUcii cases Further, tiie i-onunittre m of opinion th.it tin- curtailment ni the cuhurban train servi.,- hns iieeu .1 factor in I im-reasiujr the rents in citir-. and urges t;-ie reinstatement or siH-h services as ■Bill i-naM.' suburban resicionte to atten.l to their occupatinn- and reach then homes vithont r-.-rion-- .lirlii'ultv. PoWER* 11K FOOD CONTROLLER. Tile committee i- of opinion that the ipeiial plenar. powers to 'ie vested ill the X 1 «. ontroli.T >hould include, inter alia: - la) To effectually prevent an increate in pi i> p~ in any ■ use when- such proposed increase i- ii.it justified to hu> Mtvfaction. nn.l where iieiiweary to f.\ from tinif to timi- maximum wholetale and retail price- m 2011 Is throughoi;t N-v. Zeuland. (hi To provide for the rejruiation of TPtai! pric-e~ of 10.-al products to congumere in New Zealand in the followin<i manner viz.: By lite purchase at the rillina export prices ot r-u.ii products as may l>,. required for local consumption and t lie distribution thereot throughout the Dominion at, *„(■!, lower pn.-es as the Food Ton-! tro'!er shall think fit. the loss tieingj enet out of trie (onsoli.luted Fund. j irl To make arranfremeuts for tho elimination a* far as po>~ible of tho | jre-ent unnece-ssarv n'iiefful foet of < i-tribution. idi To eliminate the mHdlem"Ti'- !- ---! profit* wherever possible U\ l.ringiii.-' thf .-on-uni<-r more nearly into contact -with the producer. ,cj Tv take the st<-ps to «n-;ire the efficient carrying out of the "through-booking" scheme for perishable foodstuff* and of the "fruit-by-jiOMt ,- scheme. I 1 To fix and otherwise deal with t"i- rent.- of dwellinirhous.-s under power* similai to those under wliich le may d.a! \ith the prices nt goods. A livel'j diM-isei m followed especially en the proposal t-.at any losses on tho sale nf i:\purtahli products in the nonunion at low prices be borne by till! CousoUdated Fund. Mini-tt rs taking the lead in opposing the suggestion. Tin , committee wa> not unanimous. In introducing the report. Mr. Stathain. chairman ot tbe L-uuunittue. remarked t"it it .uuld he ackniiwledged that the question laid btitliei legislators throughout the world, li must l>e admitted th«r the cost oi living had e.vtensively increased and that remedial mea-urci had oulv met with partial success. He had Uo doubt that the report Wuuld meet with vigorous criticism, and h.- might mention that the committee whs unani-m-.ti- in all it- The\ >vere of opinion that tht proposed K0.,,1 ( ~n troUe, .IrnuU have < Lhmot rank \n d hi. acthities ,!„,,!,! ~.,t l. n d tQ , |U Mr Statha,,, : , (1 , ; .,| tiial ~„. ~,„ Ht con-idered the i;.,a:d of Trade could act

opinion that if all food matters were concentrated under one Department, the results would be sure and satisfactory. Another matter <ras that strict surveillance should be instituted to prevent short-weight sales of food. (Hear, hear.) THE TRADING POWER OF MUNICIPALITIES. 1 was also suggested that legislation should be passed compelling municipalities to enter into trading enterprises where t t was felt desirable in the public interest to do so, but the committee tinally decided not to urge this point. Sir. Payne: More power should be given them. Mr. Ktathani: The trouble ill most case- is that the municipalities will not avail them-clves of the powers they now possess. Speaking about the powers proposed to invent in the Food Controller. tne member pointed out that experiments in other countries had met with varying lie would divide t'nc coninu'ditic- over which the Controller hail power into three classes: ill Imported manufactured jzoods; (-2) goods manufactured in die Dominion from raw products* i in - pmr.-.t irnin abroad; and f :> j staplo pro- ! due;- uf I),.minion goods mad.- from them. As to the tirst and second clashes, | the Tout roller".- duty would be to see ! that no exorbitant profits were made, and ] that no undue profits were made in con- j vrr-ion K>i raw materials into the linished 1 artiile. while a- to the third ela-s. the' X 1 Controller tli.uild h.ive power to take "\,-i good- nt ruling export prices and place them on the local market at : !ov.,r j.rioe*. the diffcren.e being made j up "lit o! the Consolidated Kund. It, wa- tlumglit that by taking the difleretlcc from I lie Consolidated Fund 1 he w.-:i!tiii.-r j.-eople ..: t!:.- country would It-a: the greater part "i the burden. As the 1 oiiMilidated I'und was not incx-hau-ijble. it vex *Ujij;esU'd that a' i-xpiirt tax ■iliould he imposed to meet j tiie >itu.ttion, thougii he admitted this j was 11 moot point. He moved the adop\N AMKNDMKNT MOVED, Mr I". K. <idey moved an amendment i thai :he report lie referred hack for fur-j ther consideration of ilie paragraph pro-po-ing that any loss on tin sale of' exj-ortable product- for local consuinj tion he borne from the consolidated ' n venue. The mover said tlie I'remier kn.'w tin' Committee was not. unanimous on tiie daii-e, whieli avoided a salient feature. When tiie i ommittee divided it wa- m-arlj .-.(ual. Mr. -I. S. l)ick.-.n: Eight to six. Dr. Thacki-r: Which way did butter-j fat vote'; KiNAM X M!N"ISTKR"s VIEW. Sir .10-eph Ward compiimented the Committee ..n their work. It would, he said, be tne easie-i L..iig in the world for members after ilic House had received th.- report To place blame on tlie Government for failing to give effect to any of tie Committee'- recommendations, but it to put into practice some of the rc-ominendations nf the Committee would mean the ruination of the country, it was the duty of the Government to express its opinion on these proposals. Now. what, was the position of the Consolidated Fund? He was amazed at the Committee sugge-ting that the Consolidated Rtvenue should Iwar the cost of ttie proposal. A mafflber: The Prime Minister"jnUst" have voted for it. Mr. Massey: But I told them it would not out. 1 Laughter.)„.,»».«»«. Sir 'Joseph Ward, continuing, said the Consolidated Fund comprised revenue from stamps, railways, and all taxes. He had asked what the losses would f>e. The reply wa* indefinite, because nobody could tell, iney might easily run into three ■Iγ four million.-. Why not be honest and realise that people who would benefit from the arrangement would also' have to pay tiie loss, boeuuse it would | have to be made up by taxes. If the Food Controller was to have plenary powers, why make him a Minister! If lie had power to override hi- colleagues. 110 Minister would work with him. rt was Miggc-ted that some genius of extraordinary power-i was able to say what 10..- ( «. should be made. He would be greater than Government or Parliament. In New Zei'.iand the country was de- j pendent for the great revenue required ! for tt-ar purposes on our big exports of j produce. While there was the difficulty of! the townspeople of the cuntry having to: I pay price- on a rising scale owing to the ■export demand, rather than have the uncertainty of ihe demand on the Consolidated Fund he would ten thousand times sooner -cc a direct contribution by Government to help overcome the strain on the mas?, of the people by high prices. The difference between the position of the Kckml Controller at Home and in New Zealand was that Britain had to import two-thirds of its food supplies, while .New Zealand exported more than twothird- of the food it produced. In his opinion the only people who could control the products of this ! Country were the controllers of ship-, and Jtliey were tin: Briti-h Government. Already the British Government had disappointed s,- ( , rL .< ~t business nun and producers hy excluding; millions o j pounds" worth of produce owing to inability to -pare sliipa to t«ke it away. KXPoirr TAX CRITICISED. The Minister Went on to ask those who proposed an export tax where it was going to end. If it right to put it on HOW, he .i-ked. -en how much are \ ;11 prepare,! to take oft" in the -hap,/ of income and land tax upon those who will |«.l«o have to pay export tax? Touching I upon the question of State-owned transpnr..-. the Minister laughed the idea to Scorn, -o far as instituting such a. proposal at the present time in the middle of a war. I hn Government, he said, had no more cliaii.T of getting the necessary shipping nu« than of jumping over tho moon. Was it expected that importers would pay high freights, rents, salaries and incidentals. and not make a profit'/ Vi.n will find in the long run, concluded Sir .Joseph Ward, that the only way to net over the trouble i- by assessing what Rc'unl profit is to be made for tlie currency of the war. fix it at .1 reasonable price., and see it carried out. LA Bui R MKMBKR.v SUGGESTION'S. Mr. Veitch contended that the committee was not sepking to restrict producer- for the benefit of consumers, but to limit the war profits of producers in wai useless, the Government would have to act definitely. The proposal to pay the difference between the export and local prices out of the Consolidated Fund v-'dH absurd. It was clear that commandeering meat had kept down pri.es in -sew Zealand. There was a shortage of food all over Europe, which would increase the demand for mil products after the war. The uutterfat levy, which vias not v big thing, amounted to a quarter of » million, so that if New Zealand went glibly ;,,t,. :■ B c!:»me ; nMilving imge bontiß-s to producer*, becoming greater as tie producer*' profits increased, tlie position would become in 1 tolerable. The wool kings' returns had I inercMsed hy r,(, ,„.,- ,-ent. yet the wages oi workers h a .| diminished :;:( \..i ■and they wotild h.xie to he taxed to maintain the producers- war profits. .\ ho supported the Consolidated fund proposal mutt have had the inten-

tion oi killing tiie report. He could see no better idea than making the producing interest bear the cost of the local j supply scheme. He specially recom- 1 mended the Government to consider the evidence of the president of the Wellington Trades Council, that militant trades unions had secured the greatest advances while those who kept to the law had achieved the least success. Thus it was necessary that the latter section should not appeal to Parliament in vain. Unless the municipalities could control wheat from the producer to the delivery of bread, there would be no reduction in price. This >van the day of big things and the trouble about the Xationul Government wji.s its failure to tackle big things. PRIME MINISTER <>N POSITION - . Mr. Massey stated that he never attempted to interfere with the committee, lie never heard any evidence of exploitation before the committee or of any monopoly discovered. Alt. Honiebv: We did discover it. Mr. Ma.-scv: If it can be proved we will prosecute. That wa* one of the 1 tilings 1 wanted the committee to tind out. if it exists. I'm sorry the commitI tee did not lind it out. The Government was just as anxious as anyone to reduce ] the cost of living, but unfortunately it could not be done by a scratch of the I pen. History showed that in nearly ■ every case maximum price-fixing was a 1 failure because production was inter- \ fered witn. scarcity followed, and prices ■ went up. He was sorry that the comj miltee ha-d not been given a definite I order of reference directing them to ascertain what tiie effect of increased wage:-, monopoly anil export- prices bad upon the cost of commodities. Many of our foodstuffs came from overseas. I otihl this country control these prices in the slightest ■-" Many .if them had I become prohibitive since the Imperial ! Government put up freights. It was almost the same with wheat. The fact that he did not jrrow enough wheat fur ! the Dominion* consumption was partly J due to tiii" abuse levelled at the growers jin Parliament, and outside during the J last few year*. They grew something I out of which they got more pleasure and less abuse. Keganling other pro- ' ducts their producers had not been getj ting the [nice- prevailing in the world's market. They had got less in selling to the Imperial Government, less probably by eight millions, but he admitted the prices were remunerative. No man in the whole community earned his I money so hard as the small dairy farmer —many of whom, with their families, worked hard, and only got net profit at the end of the year of Xl"2«t to <J!."if>. Mr. llornsbv: And they want them to pay into an equalisation fund. . Mr. Ma*eey went on to say that he had I»0 brief for the wool kings, but Parliament should know that nineteen out of twenty wool-growers were small men. As an abstract theory, it was right to take the difference between export and local prices out of the Consolidated Fund, but in practice it would work out with jjre.at injustice to the small producers. ' If the House wanted this done they would have to find another Minister to do it. (Hear, hear.) Meat had gone up. but he expected the price would be reduced next month when the s.-ason advanced. There had been ditli,culty. through storage charges fox-eight months being added to meat taken from Imperial Government supplies. He was .iiopmg to am ken special arrMwrment by which meat would be set aside and delivered as required without the cost of storage. Mr. Massey. continuing, -aid that he had no suggestions regarding the ap pointraent of a Food Controller, but no man could keep down the cost of food. In England it had gone up very considerably, wiiiie with a man like. Hoover lin control it had gone up 40 per cent in America. He contended that t'nc cost of living was about the same there as in New Zealand: and in both countries th-.-cost of living wa- lower than anywhere rise in the Kinpire. .Mr. Wilford: The food controller has been a great success in Canada. Mr. Maxsey: Yes: but the cost of I living has gone up more in Canada than in New Zealand. Speaking generally he supported the committee's rec-omme'iida-tinns, anrl he was not oppo? <1 to Mr. Sideys amendment. Ho thought, on the j whole, it would be a fair thing to refer jthe report back to the committee. Mr. Hornsby opposed the reference ot the report back to the committee, contending that it would achieve no good purpose, as the same decision would be reached. In sm ting the suggested appointment of ,r»d Controller lit expre-ed the . .1 that Mr. Mac IJonaid. now a nKi.iuer of the Board ot Trade, wou'd be an eminently suitable j man. ) Mr. McComb- hotly contested the statement that there had been little or 110 exploitation in New Zealand, declaring he <-ould spend two hour, himself m letting: lii-tames. As to the work of the llioard of Trade the member described it las a precious Bonrd. which struck an ,aveiage 01 prices, and the general average ot p,i«. s immediately went up In j short, he contended all the so-called effort- to reduce t!, e ~O s t of living under jthe National Government had been the j rankest humbug. I At 1 a.m. Mr. Webb was vigorously jadvocatin- State enterprise in industrial ventures essential commodities. i U T Tt r lO D " S refuted IMr McComlM suggestion that the Hoard of Trade had been responsible lor in- * creasing p r i,,, s . thouffh he agreed that I from a combination 4\ causes prices had , increas-f.. In his ( ,pinion it was essential I that the fioyprnnient should control us ta; as possible the foodstuffs of the country in order to help consumers to get them at reasonable prices. The only way to keep pnees down was to control the markets and eliminate competition between exporters and men buying for general consumption. The amendment was carried without I division, and the House rose at 2.30 a.m. I ——