CHECK ON PRICES
SUBSIDIES TO STAY AUSTRALIAN DECISION REVERSAL OF POLICY (1 p m.) CANBERRA. Feb. 24. The Federal Government has decided to continue the subsidies which it pays to I'cep down prices on many items. Ministers had hoped to reduce subsidies gradually without a perceptible effect on local prices. The main items on which the Government pays a price subsidy are: tea potatoes, coal, woollen goods, milk products (including butter and cheese), leather textiles, and some imported raw materials The prices commissioner, Mr McCarthy, ifi a strong worded report submitted to a Cabinet sub-committee stated that the withdrawal of subsidies would bave a disastrous effect on prices. He said that because of rising world prices it was impossible for the Government to carry out its policy of reducing subsidies. Other countries were heading for inflation, and unless Australia had price control and stabilisation it would have to go with those countries. Mr McCarthy said that if the Government withdrew its subsidy on tea, for instance, the price would go immediately from 2/0 to 5/0 a lb. Mr McCarthy declared that to keep proper control of prices the subsidy system should be extended to a number of other commodities which affect the cost of living
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Bibliographic details
Gisborne Herald, Volume LXXV, Issue 22569, 24 February 1948, Page 5
Word Count
205CHECK ON PRICES Gisborne Herald, Volume LXXV, Issue 22569, 24 February 1948, Page 5
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