Importers Expect Little Effect On Living Costs

Greymouth Evening Star, 25 August 1948, Page 6

Importers Expect Little Effect On Living Costs

(P.A.) WELLINGTON, August 24. “The public has been led to believe the cost of living will go down to a much greater extent than it really will do and that the change will come sooner and be more lasting than it will actually be,” said Mr W. H. Haddrell, an Auckland delegate at the annual meeting of the United Kingdom Manufacturers’ and New Zealand Representatives’ Association. The association had received a telegram from its Auckland branch quoting a resolution adopted by the branch on Monday, urging immediate representations to the Government on the danger of fixing an arbitrary rate for the reduction of prices of goods irrespective of the exchange rate under which they had been brought into the country. Mr Haddrell said that at the Auckland meeting two costings for shipments of the same worsted material had been quoted.- A shipment arriving a few days before the rate changed costed out at £1 18s Id a yard. The second shipment, now on the water, costed out at parity would be £1 18s lOd a yard. This showed the fallacy of the fall prophesied in prices. Gamble On Wool Prices Giving his personal opinion about the revaluation of New Zealand currency to parity with sterling in an address to the United Kingdom Manufacturers’ and New Zealand Representatives’ Association today, Mr W. N. Perry, president of New Zealand Federated farmers, said only time would tell whether the move was -wise. “It seems to me that the whole thing is a gamble and it is largely a gamble on whether w'ool prices hold,” said Mr Perry. “If wool prices recede to any ex-

tent farmers on P oor , e .L. co , l A n^„-^} l J be placed in a very difficult position and repercussions from this will be transmitted right through our economic system.” WOOLGROWERS WILL BE HIT BY CUT (P.A.) WELLINGTON, August 24. It was true the variation in the exchange rate would reduce the woolgrowers’ income by about 20 per cent, if buyers operated on the. same basis as last year, said the Minister of Industries and Commerce (Mr A. H. Nordmeyer),. in the House of Representatives this evening.. This section of the community might suffer a decrease in its income, but there were two funds which might be used | to cushion the adjustment. | One was the fund of n ®arly; £2,000,000 built up by the. Wool, Board from the wool levy. This was j clearly the farmers’ own money, said i Mr Nordmeyer. . . i The second fund was one arising from the scheme under which the Go- , vernment took over wool during the war on behalf of the British Govern-; ment. This fund might reach between £5,000,000 and £6,000,000, when the accounts were wound up. TRADES COUNCIL APPROVAL OF STEP (P.A.) WELLINGTON, This Day. “The Wellington Trades Council is delighted at the Government’s decision to restore the exchange rate to parity,” said the council in a statement. It added that the step, wisely taken by the Government, would bring a measure of much-needed relief to all people with low incomes on whom increased living costs had been pressing most severely. It would also restore a proper relationship in the division, of the national income. The vice-president, Mr J. H. Collins, speaking on behalf of the council, said it was probably too much to expect the full benefit to come to the people, but on the information available it was safe to assume that it should result in a decrease in the cost of living. A resolution congratulating the Government in returning the exchange rate to parity was passed at the annual meeting of the Wellington and Taranaki Soap and Candle and Tannery Workers’ Industrial Union of Workers. < No Action By Australia CANBERRA, Aug. 24’. It is learned authoritatively that the Prime Minister (Mr Chifley), addressing the Australian State Premiers in a closed session of the Loan Council, said: “Australia will not vary its exchange rate with sterling unless sterling is depreciated.”