AVOID INFLATION

Auckland Star, Volume LXXIII, Issue 106, 7 May 1942, Page 6

AVOID INFLATION

LAST MINUTE ATTEMPT

SLOWER THA3V AUSTRALIA

(By Telegraph.—Parliamentary Reporter)

WELLINGTON, this day. A last-minute attempt by the Government to avoid inflation was discussed by the Leader of the Opposition, Mr. Holland, in the financial debate. Condemning the inflationary tendency of the Government's methods, Mr. Holland pointed °ut that the volume of goods available had been reduced by 30 per cent, but the spending power of the community had increased by 10 per cent, which accentuated the problem of avoiding inflation. The Government attempted the impossible task of freezing prices while costs were allowed to skyrocket.

I believe the Budget is a genuine attempt to arrest this inflationarv tendency," added Mr. Holland, "but it should have been put into operation before now."

He regretted that New Zealand had not adopted the Australian policy of decreeing that wages should stay at the point which existed on Februarv 10, 1942. The Government had made an attempt at stabilisation, but started a year after the war began. The Labour Government in Australia started to stabilise prices and commodity values the day it came into office. The New Zealand Government had failed because it preached stabilisation one moment and plunged into inflation the next. It had also fixed prices one day and had bumped up costs the next day. How could a reasonable measure of stabilisation be achieved when the Arbitration Court was left free to skyrocket costs and wages until the stage was reached, when, according to thf Financial Statement, it was necessary to take excess purchasing power out of the pockets of the people especially out of the pockets of the working people?

Mr. Holland said he had thought and had hoped that some consideration would be given to the farmer. It was wrong to increase the wages of a city carpenter receiving £9 10/ per week and deny some increase to the country worker.