WAR-TIME PRICE INDEX

Press, Volume LXXIX, Issue 23942, 8 May 1943, Page 4

WAR-TIME PRICE INDEX

RELATION TO WAGB j ORDER RISE TOO LOW FOR INCREASE (P.S.S.) AUCKLAND, May 7. No increase in salaries, wages, or other remuneration will follow the issue yesterday of the first war-time price index computed by the Government Statistician in terms of the Economic Stabilisation Emergency Regulations, 1942. The Gazette stated that the index at March 15 was ItlL this representing an increase of U per cent, in the general price level at commodities included in the war-tirte price index since December 15, 19.42, tor which date a base of 1000 has been adopted. . Had the increase been 2J per cent or more it would have entailed the issue of a general order by the Arbitration Court increasing the remuneration of all workers by an amount ai nearly as possible equivalent to the increase in the index. Where the remuneration was more than £6 a week, the percentage increase would apply only to the first £6. Procedure for Increases „ When the stabilisation order freeiing salaries, wages, and all other remuneration at the levels obtaining on December 15, 1942, was issued the pro. cedure for granting increases by general order was defined. An essential part was a new index of prices, or of the cost-of-living. This figure, to be known as the war-time price index, was designed to record increases or reductions since December 15 in the price of such commodities and services, including rents, as the Minister might direct. The general level existing at December 15, as indicated by the index, was to be known as the “basic level of prices.” The Government Statistician was required to publish in the Gazette, at soon as possible after the end of quarter ending on March 15, 1943, and after the end of each following quarter, a statement of the war-time price index at the end of the quarter showr ing any rise or fall in the general level by comparison with the Sasic level of December 15. General Order

The Arbitration Court was then required to issue a general order increasing or reducing the rates of remuneration whenever there was a variation of not less than 5 per cent, in the price level as shown by the last statement of the war-time index to appear before application for the order was made. It was provided further that the first general order increasing remuneration was to be made when there had been an increase of not less than 2J per cent, in the basic level of prices. J The first statement of the index shows an increase, therefore, 1.4 per cent, lower than the minimum required to authorise a first general order increasing remuneration.