PURCHASING POWER AND SUPPLIES

Evening Post, Volume CXXXIV, Issue 145, 16 December 1942, Page 4

PURCHASING POWER AND SUPPLIES

WAGES, RENTS, AND PRICES, FIXED

War Cabinet's decision to stabilise individual rates of remuneration and also rents not covered by the Fair Rents legislation, and to extend the policy of stabilising the prices of essential goods in the interests of the economic well being of New Zealand and its people was announced last night by the Prime Minister (Mr. Fraser). A gap that was approaching £100,000,000 had opened up between the supply of goods and purchasing power, said Mr. Fraser. Steps had been taken in the past to control the situation, but they were no longer adequate. If events were allowed to take their course the result would be inflation and the destruction of all that had been attained in the way of social security. Mr. Fraser emphasised the interdependence of the price and income stabilising measures in the attainment of the objective of fixing' the purchasing power of the pound in the buying of essentials. Although, Mr. Fraser explained, the whole purpose of the plan was to avoid any marked fluctuation in' prices, should the average prices of the whole group of 110 items now classified as essentials rise by more than 2| per cent, there was provision for the Arbitration Court issuing a general order raising wages. Not only whs it vital to achieve victory in the military sense, said Mr. Fraser, but also on the economic front, otherwise the country would be letting down its men of the fightingservices. Regulations giving eiTect to the economic stabilisation policy were issued last night. These provide for the general administration of the regulations by the Minister of Industries and Commerce (Mr. Sullivan) and for the appointment of an Economic Stabilisation Commission and a Director of Stabilisation. The personnel of the Commission was announced today and also the appointment of Mr. B. C. Ashwin as Director of Stabilisation.