ANOMALY FEARED

Dominion, Volume 32, Issue 303, 20 September 1939, Page 11

ANOMALY FEARED

Price Stabilization Regulations

CHANGE ADVOCATED

Chamber Of Commerce Statements

Many serious anomalies would result from the Price Stabilization Emergency .Regulations, it was stated at last night’s meeting of the council of the Wellington Chamber of Commerce. The president, Captain S. Holm, said that the full enforcement of these regulations would mean an unnecessary disorganization of business,, an unnecessary curtailment of business, and the retrenchment of staffs of a great many retail mercantile houses.

Importers in New Zealand wore today receiving cables from their suppliers overseas withdrawing all prices and intimating that- prices would be quoted on receipt of orders. In addition to that, overseas freights had gone up, insurances had, risen, and in the case of goods from Canada and the United States the dollar exchange had also advanced substantially. It followed that a business firm in New Zealand that had been importing would not place any orders overseas for these higher priced goods while there was in existence in New Zealand a law which prevented advancing the price for the goods on their resale in New Zealand. That meant a disorganization of business, a reduction in the volume of business, and necessarily a reduction in the number of persons employed in such businesses. The council passed this motion:— “That the Associated Chambers of Commerce be requested to draw the Government’s attention to the fact that the Price Stabilization Emergency Regulations of September 1 have given rise to many serious anomalies and to ask that the regulations be amended so .as to give effect to the principle of prevention of profiteering without creating such anomalies as arise under the existing regulations.” My. P. E. Pattrick, in proposing the motion, said that while every responsible person realized the special conditions under which they were now living, he was sure that the implications of the regulations were not contemplated by their framers. Under the price regulations introduced in June a merchant had to notify the Price Fixation Tribunal of any increase. As long as he had a good case he could proceed with the increase with confidence. Under the emergency regulations which became effective on September 1 it was not competent to increase any price without first getting the consent of the Minister.

Supporting the motion, Mr. M. G. O. McCaul said that" when a regulation was 'found impossible it brought the law into disrepute. While the emergency regulations had been framed with the best of intentions still, like some other legislation of the present Government, these regulations were hasty and ill-considered and devised by people who did not know much about what they were doing. War Risk Insurance,

He had been advised that day that the war risk insurance rate from Antwerp to New Zealand was £7/10/- per cent., while the freight rate had risen 25 per cent. From the British West Indies freights were up 100 per cent. Certain goods were always fluctuating in price, and it was absurd that a Minister of a small country like New Zealand should in these circumstances say that there must be no increases. “The whole position is so absurd that only a Gilbert and a Sullivan could treat with it adequately,” concluded Mr. McCaul.

Mr. H. O. Pittendrigli; said that the ruling insurance rate for cargo from Great Britain to New Zealand was £2 10/- per cent. There was also a 25 per cent, increase in the freight charge. Captain Holm said that the regulations gazetted on June 2 under the heading of The Board of Trade Price Investigation Regulations, 1939, briefly required that no person could increase the price of any article for sale in the way of ordinary business unless prior to such increase in price he had given notice to the Price-Fixing Tribunal of his intention to increase the price and of his reasons for such increase. Those -regulations remained in effect till the end of August. It should be noted that they did not prevent a price increase. The only requirement was that if a seller decided to increase his price he must, before actually putting the increase into operation notify the tribunal of his intention. Effect of Regulations. The Price Stabilization Emergency Regulations gazetted ou September 1 went very much further than the regulations of June and absolutely prohibited any increase in the price of any goods or services over and above the price which was in effect on September 1. It was further provided that any person who held for mercantile purposes should not refuse to sell such goods at the price which was realized on • September 1. “Of course this new regulation is quite impracticable and it cannot work,” said Captain Holm. “If it. were practicable it. would mean that no matter how much money a man might lose on his existing stock of goods, he could not put up his shutters and go out of business but must continue to sell his goods at a loss till he had emptied his store. That is not practicable, nor do I think it would be upheld in the courts."

If the regulations were impracticable and would not work, obviously they' were not in the interests of New Zealand. What was wanted in New Zealand was a readjustment of ail business to meet the war conditions, so designed as to ensure that the greatest possible volume of business would be done. The more business that was done, the more goods that were manufactured, and the more foodstuffs there were produced, the better for the country and for the other countries with which the Empire was allied in the present war. It was obvious that what they must do in New Zealand was to ensure the least possible disorganization of business. At the same time it was necessary to prevent undue profiteering arising out of the war conditions. What was needed was a set of regulations which would maintain to the fullest possible extent the volume of business in this country and at the same time would ensure that no one made an undue profit out of his fellow men because of the war conditions.

“If the regulations already existing do not make for that end, surely they should be withdrawn and some regulations that are practicable and will work should be framed to take their place," concluded Captain Holm.