PRICE CONTROL

Evening Post, Volume CXXXV, Issue 14, 18 January 1943, Page 3

PRICE CONTROL

SUCCESS CLAIMED

REPLY TO HON: A. COOK

"Quite incorrect and misleading" was the description applied by the Minister of Supply (Mr. Sullivan) today to the statement made by the Hon. Arthur Cook, M.L.C., in a recent article in "The Standard" that "strict stabilisation of wages is now in force, but the stabilisation of foodstuffs is simply a joke. . . ■-." In reply to Mr. Cook's criticism that the Government and State Departments were failing to control prices effectively, Mr. Sullivan gave facts which he said disproved the criticism and showed that on the side of prices the Government's stabilisation policy had been an outstanding success. "The cost-of living in New Zealand has risen much less in this war than it did in the last war," said the Minister. . "In the first three and a* quarter years of this war retail prices have risen 134 per cent., compared with nearly double this increase in the corresponding period of the last war. In the latter part of, the last-war retail prices rose still more steeply, and at the end of the war were 60 per cent, higher than at the beginning. The Government is confident that it can prevent any such rise in this war. "The cost of living in New Zealand has risen less since the beginning of this war than in other parts , of the British Commonwealth/Compared with New Zealand's increase of 13 per cent., the increase in retail prices in Great Britain has been 30 per cent., in Australia 20 per cent., and in South Africa 181; per 'cent., and in Canada 18 per cent. "In ..New Zealand the prices of the more important commodities in the family budget have not increased since the beginning of the war. Moreover, in recent months the Government has greatly increased the range of commodities in which no price increases will be allowed. EXAMPLES QUOTED. j "Here ai'e some examples of the success of the stabilisation policy as applied to the more important items in the cost of.living:— *■■ "Meat, which accounts for 10 per cent, of the average housewife's expenditure, has not increased in price since the early months of the, war, and has in fact been reduced in price. "Dairy produce, which accounts for another 10 per cent, of the average housewife's expenditure, has not increased in price since the beginning of the war. , "Bread, which accounts for 25 per cent, of the average housewife's expenditure on groceries, has not increased in price. "SUgar has been held stable in price by Government subsidy. "Coal has also been held stable by a subsidy. "Mr. Cook calls the public servantt. who administer the stabilisation policy 'inexperienced incompetents.' The answer is in the facts given above. By the test of. results the administration of price controls in New Zealand has been, a success unequalled in any other part of the British Commonwealth. EXTENT OF SUPERVISION. "In his criticism of the administration of price controls, Mr.. Cook involves himself in contradiction as well as inaccuracy. He complains that there is 'a small army, of petty dictators,' and that the powers given them are too great. .But later in his article he argues for more supervision of price regulations and more drastic action against offenders. He cannot have it both ways. ***■ ,- '•Finally," said the Minister, "Mr. Cook omits to mention that the Government's stabilisation policy removes the possibility of wages remaining stable while the cost of living rises. If the cost of living rises by as little as 21 per cent, in > the first instance and after that by 5 per cent., wages must.be increased accordingly.

"Mr. Cook has himself paid a tribute to the policy he now criticises.. In November, 1942, after a trip to' Australia, he said in a discussion of living costs and shortages: 'I notice there has been a lot' of squealing in New Zealand about the little inconveniences the civilian population have to put up with. . ; . I am convinced that the people, of this Dominion are in a paradise compared with Australia.* Since that time the comparison of living'costs has altered in our favour."