INFLATION IN AUSTRALIA

Press, Volume XCIV, Issue 28050, 18 August 1956, Page 11

INFLATION IN AUSTRALIA

Talks End In Deadlock (Rec. 11.30 p.m.) CANBERRA. August 17. The special “halt-inflation” conference of the State Premiers and the Commonwealth ended in a deadlock today after the acting Prime Minister (Sir Arthur Fadden) announced that the Federal Government was prepared to cooperate with the States in the reintroduction of price control. When only four States indicated that they were prepared to accept the offer. Sir Arthur Fadden said it was useless continuing the conference, and he declared it closed. The State Premiers left the conference hastily for the airport to catch planes back to their States. Earlier. Sir Arthur Fadden nad called a special Cabinet meeting of available Ministers to consider the view put by five of the six StatePremiers that wage stabilisation must be accompanied by price control. The sixth State, Victoria, had rejected price control as a weapon against inflation. The Commonwealth, though firmly opposed to implementing price control itself, offered co-operation with the States if they wanted it. In the discussion at the anti-infla-tion conference after Sir Arthur Fadden made his offer, the Labour Premier of New South Wales (Mr J. J. Cahill) varied his earlier attitude and said that New South Wales could not accept the terms. The Victorian Liberal Premier (Mr Henry Bolte) said the conference had not convinced him that price control was necessary He had nevei favoured it. “Useless Continuing” Sir Arthur Fadden said that as only four States were prepared to accept the terms they could not be regarded as a national plan. it was useless continuing the conference. he said. Observers believe there is still a chance of some action developing from the conference, and that the Premiers may again examine the inflation problem after Mr Cahill and Mr BoPe have reported back to their Cabinets

As he left for the airport, Mr Bolte said he thought the conference had achieved nothing, and that he had not expected any useful result.