COST OF LIVING IN N.Z.

Press, Volume LXXXIX, Issue 26987, 12 March 1953, Page 11

COST OF LIVING IN N.Z.

MR WATTS’S VIEW “ PUBLIC ABLE TO BUY WHAT IT WANTS” (New Zealand Press Association) WELLINGTON, March 11. Though there was widespread comment on the cost of living, there was no doubt a f bout the public’s ability to pay for what it wanted, said the Minister of Industries and Commerce (Mr J. T. Watts), addressing the Wellington Chamber of Commerce this evening. Figures showed that New Zealanders were eating and drinking more than ever, he said. Examples could be quoted showing increases a head in the consumption of butter, canned fruit, beer and stout, tobacco, milk, and meat. In spite of increases in price, motor-cars, bicycles, sewing machines, and electric irons were being used in increasing numbers. “The businessman finds himself trading in a more competitive atmosphere today than he has known for 14 years,” said Mr Watts. 'Some businessmen expected the boom conditions of 1951 to continue and expand indefinitely. Most businesses have adjusted themselves to the more normal competitive trading conditions, and although they will not make the very high profits of 1951 and 1952, they will find that there is still a great deal of business to be obtained. As far as I can judge, there is a ready demand for any worth-while product or service.” Mr Watts said that some firms with long memories and long heads, realising that shortages would end some day, kept up their quality and style and were still carrying out their primary function of trading, but there were others which became accustomed to order-taking rather than selling. To them the war years and the post-war years, with inflation, shortages, rationing, and controls, seemed to be a good thing. He thought some of them would like to return to that state of affairs, but those conditions were really an economy of shortages. That was the fundamental difference between the Labour Party and the present Government. He did not believe that an economy of that sort was in the public interest.