Prices monitoring to ease after Budget

Press, 31 October 1984, Page 8

Prices monitoring to ease after Budget

PA Wellington The Trade and Industry Department will not take on extra staff to monitor price rises or investigate complaints once the freeze comes off on Budget day, November 8. Mr Peter Donovan, Deputy Secretary of Trade and Industry, said the department believed it could handle the complaints it was likely to get after the freeze ended with existing resources. Departmental staff would be released from administering the present freeze and more staff would not be needed The Minister of Trade and Industry, Mr Caygill,

has said there was no plan to reimpose a blanket price control system but if particular prices rose excessively the Government would not hesitate to act. Mr Caygill has said’ the Government would if necessary add to the list of 33 items which would remain under price control (under the Commerce Act). Mr Caygill has also said the Government would strengthen legislative sanctions in the Commerce Act against restrictive trade practices if necessary. A plan to phase in extra import licences has been announced which is intended to generate competition in the hope that it will help

restrain prices. It would be mainly up to consumers to police price rises after the freeze, Mr Caygill has said, and he also expected “discipline” of private enterprise to help control prices. The Commerce Act provides price control for a list of specific commodities including eggs, sugar, flour, butter and soap. It also provides for the department to investigate any goods or services, Mr Donovan said. The department would monitor, on behalf of the Minister, the price trends, and would talk to traders to find out why any prices had substantially increased, he said.