FAIR PRICE CONTROL

Evening Post, Volume CXXVIII, Issue 70, 20 September 1939, Page 8

FAIR PRICE CONTROL

All fair-minded people in New Zealand—and they are the overwhelming majority—will support action designed to prevent war profiteering. It is contrary to the public spirit that any person, trader, producer, or worker, should be allowed to make a gain out of the nation's trials. Few will attempt to do so; but those few must be controlled. Control, however, is not a simple matter. War conditions inevitably lead to increased costs, more particularly in sea-borne goods, which are loaded with the extra charges involved by war risks. In order to maintain supplies these additional charges must be met, but under the price-control regulations at present operating they are not allowed for. The regulations fix the price for goods or services on September 1 as the price which may not be increased. This was designed only as a temporary measure, as the Minister of Industries and Commerce explained, to guard against a sudden rise in prices in the period immediately following the outbreak of war. Power is given in the regulations for the Minister to fix a different price or rate, but so far as we are aware this has not been done. Possibly the answer will be made that individual traders,, manufacturers, or others may apply to the 'Price Tribunal for permission to raise prices where extra costs warrant an increase. But this is liable to lead to great delay, inconvenience, and even expense unless the system of operation can be simplified. It is stated, for instance, that importers have been unable to place orders because they have not had an assurance that they would be allowed to increase their charges in proportion to the higher prices which they have had to pay. In the meantime they have seen quotations mount steadily higher. Already in some lines there have been, increases ranging up to 30 per cent. It is not thought that the importers will be compelled to bear such increases. In fact that cannot be done; and to insist upon it would mean cutting off supplies. But traders and manufacturers naturally want to know where they stand. They cannot undertake business involving large sums in the simple belief that it will be all right. Nor do we think that it is possible for the Price Tribunal as at present constituted to review every order and every price affected •by war conditions. That would mean interminable delay and uncertainty. Some less cumbersome method can surely be devised by the Government in consultation with the chambers of commerce and other organisations affected. These organisations are as anxious as is the Government td prevent anything resembling war profiteering, but they perceive the danger, if a workable system of control is not soon framed, of a shortage which may be no less embarrassing.