COST OF LIVING.

Auckland Star, Volume LXVII, Issue 113, 14 May 1936, Page 8

COST OF LIVING.

GOVERNMENT ALERT. WILL ARREST RISE. PROTECTION OF WORKERS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The determination of the Government to prevent an undue increase in the cost of living, as a result of its policy of improving the standard of living of the workers, was expressed by the Prime Minister, the Kt. Hon. M. J. Savage. Mr. Savage admitted that there was a tendency for prices to rise following the Government's announcement that there would be an all-round increase in salaries and wages. He said the Government was determined to use its powers under the Board of Trade Act to see to it that the workers who received an increase in wages or salaries wouid be • safeguarded against an artificial increase in the.cost of living. It was of no use, said Mr. Savage, to increase 'wages and salaries if the workers were going to be called upon to pay more for the goods they needed as part of their everyday economy. What the Government aimed at was increased buying power, and that could not be achieved if costs rose in exactly the same proportion at the same time. It was the Government's ultimate intention to achieve its object by agreements with other countries, but in the meantime it might be necessary to bring that about by means of tariff. The Government would not hesitate to protect local industries if that was deemed to be necessary in the interests of the masses, he added, but he did not admit that the talk of increased costs as a result of the Government's industrial legislation was justified. The Government was alive to the possibilities of the situation and was prepared to meet them if necessary. Mr. Savage was asked whether he could state the Government's attitude in regard to giving preference to British products. He replied that naturally New Zealand would take a large part of its goods from Britain, which was part of the British Commonwealth of Nations. One of the objects of the impending visit to Britain of the Minister of Finance was to negotiate an agreement whereby New Zealand would take British produce in preference to produce of other countries which were not importers from New Zealand. It was conceivable-;-however, that there would be goods which it was necessary to import from America, and at present the Government was not being dogmatic over the position.