PRICES IN WAR.

Auckland Star, Volume LXXII, Issue 88, 15 April 1941, Page 8

PRICES IN WAR.

AUSTRALIAN CONTROL.

SYSTEM WORKING WELL

A statement that the system of price control in Australia was causing the utmost satisfaction among business firms and organisations as well as the general public was made by Mr. R. M. Baiker, secretary ot the New Zealand Ma>ter Grocers' Moderation and other tiade organisation*, who has carried out an investigation of the system there o\er the past three weeks and returned over the week-end. Mr. Barker's inquiiies were made on behalf of grocers, drapcis and other trade sections. Representatives of many trade organisations and firms in a number of cities ith whom I came in contact all expressed satisfaction with the effectiveness and the fairness of the system," said Mr. Barker. "The control lias kept a wonderful check on prices, and there is a tremendous amount of goodwill between the price-fixing authorities and trade generally." Commenting on the constitution of the price control authorities, Mr. Barker said the Commissioner, Professor I). B. Copland, had associated with him three advisers, all leading business men. In each State there was a deputy commissioner, who worked in conjunction w ith an advisory committee comprising representatives of wholesalers, retailers, manufacturers, consumers, trade unions and producers. All orders, however, were made by the Commissioner.

Contrast with New Zealand Method.

All prices were not legally controlled, Mr. Barker pointed out. Traders could continue to enjoy their previous percentage of profit, which was in marked contrast to the New Zealand system of allowing only the same amount of profit. In this country it was assumed that the trader would continue to sell the. samo number of units, whereas in Australia it was assumed that the public woud have the same amount of purchasing power and the actual turnover would bo unchanged. If it were found that a firm or section was attempting to exploit the public an investigation was made, and if the charges were proved the Minister would declare the commodity involved to be the subject of price control. The Commissioner would then make an order. It was also possible for the Minister to make declarations in the interests of orderly marketing, the most important items in this respect being timber and coal. Mr. Barker said to prevent substantial price fluctuations traders were by order given a date on which stocks on hand might be averaged. Ihe average cost was determined by dividing the aggregate list of old and new stocks by the number of uni's of old and new stock. Oil that figure the usual percentage of profit was added. Mr. Barker claimed that this was an improvement 011 the New Zealand svstem.

Salutary Effect

About 300 orders covering various items had already been made, and many were "averaging orders." Between 200 and 200 commodities had been affected by the Minister's declaration. This showed that very little trade had come under control, in fact, in many trades no lines bad been declared.

Under new regulations the Minister had a right to declare a person, firm or company and every commodity they sold must have a price approved by the Commissioner. If it was discovered* that the firm had been overcharging, the Commissioner might make an order not only extracting the amount of the overcharge but also any amount by way of penalty. In this way the penalties were often higher than those in the Dominion.

"This is having a most salutary effect," added Mr. Barker. "The Australian public to-day are very priceconscious, with the result that tho actual policing of price control is largely in the hands of the public and the trade unions. Every complaint is investigated."