PROOF OF SUCCESS

Gisborne Herald, Volume LXX, Issue 21149, 17 July 1943, Page 4

PROOF OF SUCCESS

STABILISATION PLAN PRICE INDEX STATIC (P.A.') ■ WELLINGTON, July IG. The unchanged position of the all-, group figure of the wartime price index during the last six months was an indication of the success being achieved by the Government’s stabilisation programme, the Minister in Charge of Stabilisation, the Hon. D. G. Sullivan, said to-day.

Although the all-group figure remained unchanged, there were movements within the groups and subgroups. Mr. Sullivan said that fresh vegetables and eggs showed an increase, but other seasonal items, such ■as potatoes, onions, and apples showed a decrease.

In the early part of the year the control of prices of basic vegetables was not complete, consequently rises in their prices had a marked effect on the March figure. Since then control had been extended and this was reflected to some extent in the present level of the index. A contributing factor was the low price maintained for potatoes which were subsidised by the Government by Ad per lb to offset a possible rise in vegetable prices. The subsidy ceased to operate on June 30.

In working out the index of prices of essentials, Mr. Sullivan continued, everything had to be given its proportionate place and importance in accordance with the average amount that the average family would spend on it. That was what the wartime price index was doing. It took in foodstuffs, rent, fuel, light, essential lines of footwear, clothing, drapery and such miscellaneous items as transport fares, crockery, household cleaning supplies, toothpaste, razor blades and even school stationery, but it did not include non-essentials. The prices of essentials, such as bread,' flour, oatmeal, sugar and butter had remained unchanged since the outbreak of the war, although they had risen from 34 per cent to as much as 80 .per cent during the last war. The process of stabilisation went far beyond prices, however. A considerable part of the scheme was directed towards holding the costs of production.