PRICE INCREASES

Dominion, Volume 32, Issue 127, 22 February 1939, Page 10

PRICE INCREASES

Government’s Attitude To Profiteering READY TO ACT IF NECESSARY No New Legislation Needed By Telegraph—Press Association. AUCKLAND, February 21. The Government’s attitude to profiteering was made clear by the Minister of Industries and Commerce, Mr. Sullivan, in a statement this morning "The question of keeping prices stable in the present situation is one that is receiving attention,” he said. “1 have been making myself acquainted with the steps taken in other parts of the world to prevent profiteering and other unreasonable price increases. Out of this information the Government has prepared its own plan in respect to the steps that will be taken should necessity arise. Up to the present we have had occasional reports in respect to unreasonable increases, but so far there have not been many. We do not desire to go further than the necessities of the situation may make imperative. “However, should there be manifested a disposition to exploit the public the machinery which has already been prepared to deal with the position will be put into immediate operation. No new legislation is required; ample power exists, and the Government can do anything it thinks necessary by Order in Council. ' Action In Other Countries. "A number of countries, some of them within the Empire, have had to take more drastic steps to prevent exploitation of the public than New Zealand has taken, and those countries are not administered by Labour Governments. "Some people who have voiced criticism through the newspapers seem to be under/the impression that it-is not permissible to increase prices at all, consequently the fact that there have been some increases indicates to them a breakdown of the Governments plans. They do not realise the real situation. The legislation that wc have been working under up to the present time, the Profiteering Act of 1936, is directed against ‘unreasonable’ increases, the term unreasonable being defined by Statute.

“If an attempt is made to exploit the community it may be necessary for the Government to take the same steps as those taken by some other countries, and before any person can increase a price compel him to justify such increase before a tribunal.

“I do not desire to take that step, but it will be taken if the position warrants it. I feel sure that the majority of business people will play the game. The only danger is a few who by an unreasonable and selfish attitude may ‘create difficulties for the great mass of fair-minded business people.’’