EARLY MOVE.

Auckland Star, Volume LXXII, Issue 88, 15 April 1941, Page 3

EARLY MOVE.

STABILISATION.

PRICES AND WAGES.

OBJECTS EXPLAINED

(0.C.) \\ ELLINGTON", this clay. A statement that no one would go short of food, clothing or shelter in Xew Zealand, and that that was the idea underlying the proposals is attributed to the Hon. \\ . Xash in his discussion of the stabilisation scheme at the Labour Conference yesterday. It is also stated that the Minister said the aim would be principally to stabilise prices of. necessities and that it was not proposed to stabilise anything that could be termed a luxnrv.

Mr. Nash did not disguise the fact that sacrifices would be demanded because of war influences, but he said that so far as meat was concerned the endeavour would Ibe to obviate produce being destroyed and to sell to the pub ic at a cheaper rate, even if that involved the paying of subsidies.

Inuring the course of the discussion speakers directed attention to anomalies under the reflations administered by the Price Tribunal and there was a good deal of criticism concerniivr prices of vegetables. Mr. Nash exiplaiued that the law of supply and demand would operate with respect to vegetables and it was possible that the fixation of prices would result in a tremendous amount of waste—one of the things they were anxious to avoid. The Government did not want to destroy food of any description if it could prevent it.

The Minister a'so indicated that the stabilisation scheme was to be implemented straight away and the Government was only awaiting endorsement by the conference before acting. He answered iticism that only manpower had been conscripted by directing attention to the vast difference in total income tax paid in 191.1 and in 1940-41.

It is stated that Mr. Xash further explained that in some instances taxation would have to be reviewed, as it was possible to tax an industry out of existence. The worker would have to bear a share of the taxation and it would not be possible to carry out some of the suggestions in the remits, suih as the fixing of maximum income at £•>OO yearly. He claimed that Inadopting such a scheme not nearly as much would be derived from taxpayers as under the present graduated income tax svstem.

Discussing the borrowing aspect of the Government's policy, the Minister pointed out that the only borrowing was for the purpose of financing the war. He paid a tribute to Great Britain in her treatment of Xew Zea'and financially, >*ayin;r that Britain was only charging the Dominion interest "\vhich she herself was called on to pay.