CURB ON PRICES

Gisborne Herald, Volume LXXV, Issue 22625, 30 April 1948, Page 6

CURB ON PRICES

GOVERNMENT AIM STABILISATION ISSUE ANOMALY ADJUSTMENTS (P.A.) DUNEDIN, April 30. The Government was committed by its 1946 election platform to maintain stabilisation during the term of the present Parliament, but this did not mean complete rigidity, because while the principle remained Intact steps could always be taken to correct anomalies. This statement was made to the Federation of Labour conference in Dunedin by the Minister in charge of stabilisation, Mr. A. H. Nordmeyer, according to a statement released from the conference. Workers Left Worse Oft The constant increase in the wage and price spiral left workers worse off than before, Mr. Nordmeyer said. The Government did not contend that it could maintain wages, prices and costs on a constant level, but its policy enabled workers in New Zealand to obtain more of the fruits of industry than in any other country despite the reduction of subsidies, Mr. Nordmever said that they cost £13,460,000 for the year ended March 31 last.

Over the period of stabilisation, particularly since 1939, there had been a constant increase in the value of money for purchasing goods, the Minister continued. At March 31 last it was estimated that the savings of the people, less trading bank deposits, amounted to £225,000,000. “If production increases correspondingly, these figures would, give little concern.” Mr. Nordmeyer said, “but because we have sent overseas goods to a greater value than we have received in return, we are in a state of unbalance. A Considerable Gap “In 1945-40 the value of goods produced was £167,000,000, while the aggregate private income was £326,000,000. In 1938-39 the value of goods produced was £137,000,000 and the aggregate private income £185,000,000. The gap between the value of goods and money to purchase them was, therefore, considerable. “The Minister explained that this was the reason why the Government was vitally concerned that whatever changes in detail might be made, the principle of stabilisation must remain. “1 am not defending everything that the Price Tribunal has done.” Mr. Nordmeyer concluded, “but I say with conviction that during recent months, and particularly since the introduction of the price control bill, there has been a much more rigid control of prices and profits than in the past This is clearly indicated by the violent protests that the Government has received. “My policy, and that of the Government, is to ensure more effective and more efficient administration of price control.”