COST OF LIVING

Evening Post, Volume CXXVII, Issue 126, 31 May 1939, Page 11

COST OF LIVING

INCREASE ADMITTED

MINISTER'S STATEMENT

PRICE TRIBUNAL

(By Telegraph—Press Association.) CHRISTCHURCH, May 30. "I admit I have been disturbed by some of the increases that have taken place since Christmas, and it is on that account that I have now set up a price investigation tribunal," said the Minister of In- | dustrics and Commerce (the Hon. i I>. G. Sullivan) in a by-election address this evening. Mi-. Sullivan also quoted figures for 'the purpose of substantiating the claim that real wages had increased considerably above the rise in the cost of living. In February, 1936, Mr. Sullivan said, the all groups index figure stood at 840. Today it was at 970, representing an increase of 15.5 per cent. Against that the money wages index in 1935 stood at 858. It was now 1096, an increase of 27.7 per cent. "So we have an increase in the cost of living of 15.5 per cent., but we have an increase in money wages of 27.7 per cent. Therefore, real wages have increased 12.2 per cent, greater than the comparable increase in the cost of living. . "That is not the whole story. The amount of employment has been increased. There are now in our factories 123,551 people, an increase of 32 per cent. It will, therefore, be seen that all the claptrap that all the increases in wages and salaries given by this Government have been cancelled out by increases in the cost of living is misleading and false propaganda."

The Minister then made his admission about increases in prices since Christmas. He said an important aspect of the regulations was that in future a trader or any other person selling services and commodities must notify the tribunal of the fact that an increase was taking place.

"The tribunal will then have a look at it They will be on the job all the time, and, if the increase cannot be honestly and fairly justified, it will be the business of the tribunal to take the matter up with the parties under either the Board of Trade Act or the Profiteering Act and compel them to adjust -prices to what is a fair thing.

"Till about last Christmas the method we adopted was effective in keeping prices .reasonable," Mr Sullivan said, "but there have been so many small increases imposed recently, that I recommended to the Government that a special tribunal be established, armed with all the necessary authority to deal with the position."