STABILISATION OF PRICES

Press, Volume LXXVII, Issue 23415, 23 August 1941, Page 8

STABILISATION OF PRICES

38 COMMODITIES

LISTED

GOVERNMENT’S FIRST INSTALMENT

(P.A.) WELLINGTON, August 22. 'A range of 38 essential commodities is to be stabilised in price as from September 1. This is an instalment of the Government’s policy of price stabilisation, and is in accord with the recommendations of the Economic Stabilisation Conference, In making this announcement. the Acting-Prime Minister. the Hon. W. Nash, said the decision was made in consultation with the Minister for Supply (the Hon. D. G. Sullivan) and the Price Investigation Tribunal.

“It will be recalled,” said Mr Nash, “that the Economic Stabilisation Conference recommended that the prices of essential foodstuffs, standard articles of clothing and footwear, and public services, fuel, and light, should be stabilised. The following items, which cpme within this category, have now been selected for stabilisation from September 1: Foodstuffs: Meat, flour, milk, sugar, bacon, cheese, honey, bread, eggs, butter, coffee, condensed milk, tea, rolled oats, oatmeal, baking powder, salt. New Zealand-made clothing and footwear; Men’s and ladies’, boys’ and girls’ shoes (New Zealand leather in each case), men’s all-wool underwear, ladies’ woollen underwear, boys’ allwool underwear, boys’ all-wool jerseys, girls’ all-wool underwear, men’s woollen socks, boys’ school hose, woollen piece goods, knitting wools, blankets. suitings (from New Zealand wools), shoe repairs. Public services: Fuel and light, tram faros, electric light, gas, coal, and coke. Referring to existing conditions, Mr Nash explained that a measure of stability had already been given to the prices of some of these commodities. Meat, for instance, was recently subject to a price order, which brought an all-round reduction of from id to Id per lb. and was subject to seasonal influences. Stabilisation would apply to the reduced prices. Egg Prices

“The price of eggs in the main centres is now under complete control, except for normal seasonal fluctuations. Wholesale prices have been kept at pre-war levels, and an order was recently gazetted, fixing the retail margins. As regards milk, the seasonal variation is the only factor which modifies the stabilisation of the price. Flour, bread, sugar, coal, and coke have been maintained at the prewar prices, as the result of subsidies granted by the Government. The retail price of bread is uniformly fixed pt s|d for a standard 21b loaf in the main centres, and 6d in the country districts.

Although there was .the same relative uniformity in the wholesale price of flour, some further action was necessary to fix the retail margins, and steps were being taken to do this. Butter was in a similar position. There was no uniformity in price charged to the consumer: many shops charged Is 6d, but in some towns the price was as high as Is Bd, although there was a stabilised price to the retailer of Is 4Ad per lb everywhere in New Zealand. An order was issued yesterday which fixed the retail price at Is 6d per lb everywhere. Tea Prices “The price of tea has given the Government considerable concern. Serious increases in price have taken place recently, as a result of conditions on the Ceylon market, but in view of the fact that tea is a staple beverage in most homes, the Government has determined that no further increases in the cost should be passed on to the consumer. Coffee drinkers will not be at a disadvantage, because of this, for the stabilisation will also apply to coffee. The procedure the Government will adopt in respect of all these goods and services is to rely on the Price Investigation Tribunal, as at present, to examine the applications made for increases in price, owing to higher costs, i Where the tribunal considers that the proved increases are such that the applicant should not be required to absorb, it will advise the Government. A decision will then be made as to the best manner in which the increased costs can be adjusted. The action will undoubtedly involve subsidies in some cases, particularly as regards imported commodities, but before these are granted a thorough examination will be made to ensure all possible economies in cost. This may necessitate the fixing of standards or some further measure or organisation in the trade concerned, possibly with the cooperation of the Government. Where necessary, price orders will be issued to give effect to stabilisation of the prices of selected goods. In these cases, it is essential that standards should be fixed. A Standards Bill, which will come before the House this session, will provide for the extension of the authority necessary to meet the case. “The list of goods already mentioned does not mean that the limit of action has been reached" Mr Nash said. “No one can tell what variation in circumstances may be experienced under war conditions, but the policy of the Government is to secure and maintain price stabilisation for essential commodities and wherever necessary the Government will take appropriate action to extend the list and if circumstances warrant it, to stabilise prices at a lower level.’*