NEW GENERAL PRICE ORDER AS CONSEQUENCE OF RISE IN COSTS

Gisborne Herald, Volume LXXVII, Issue 23288, 24 June 1950, Page 6

NEW GENERAL PRICE ORDER AS CONSEQUENCE OF RISE IN COSTS

(P.A.) WELLINGTON, June 24. A new general price order is to be issued authorising' adjustments following upon the withdrawal of subsidies, freight increases and wage increases, provided such adjustments are notified to the Price Control Division. This will replace the first general price order which provided only for subsidy withdrawals and freight increases.

At t ho same time a further list of items will lie removed from tlie seo])e of price control.

The Minister of Industries and Commerce, Mr. C. M. Uowden, stated last night that these items comprised lines in which there was an ample supply and real competition, or which were of no great weight in the cost of living.

The Minister said that to reduce to a ; minimum the inconvenience and delay caused to traders by the effect on thencosts of the recent interim wane in- ■ creases, the GovernmenU-had held consultations with the Price Tribunal and Price Control Division to determine the, most practicable' and satisfactory way i of amending the nrice structure. Following these deliberations the Tribunal would next week gazette a further list i of items which would be exempted from the operation of price control. I Referring to (he new general price order. Mr. Bowden said that as in the case of the first general order, a list of certain basic items would be excluded from the operations of the new genera! order. These wove commodities and cervices in respect of which the Go"-r-nment and trb-nrl wished to keen in; close contact with price movements. | Mr. Eowden said that all goods and services would fall into three categories. They were: Cl) Items entirely free from the operation of price control, including those in the new list of exemptions. | (2) Items stiU under control and to which the general order would not anply, This list would be gazetted and j any desired increase would have to be j applied for in the ordinary way. In j other words, prior approval must be sought for price adjustments. (3) All goods and services not in the above categories. This group included a great majority of items and they would come under the new general price order under which traders might increase prices by amounts equivalent to increased costs, consequent upon subsidy withdrawals, freight increases and -wage increases: all such price increases to be subject to an early review. “All increases made in accordance with this order must be notified to the Price Control Division,” said the Minister. “Those increases will, as soon as possible, be examined and either confirmed or adjusted. If it is found that the increases amount to more than is attributable to the withdrawal of sub-1 1 sidies the increase in freight rates, and. 1 wage increases, the Price Control Divi-1 1 sion will institute prosecutions under 1 their general powers.” | ] The Minister said, that control overt those items not specifically exempt! would continue to be strictly enforced. \ 1 There appeared to be in some quarters, 1 the impression that the Government had | in effect, abandoned the policy of strict 1 1 price supervision. This was definitely j ( not. the case and enforcement measures' < would be taken. j ■ Traders should make themselves fully , ’ conversant with the-position, said Mr.! 1 Bowden, for their own interests as well. < as those of the general community could ; 1 best' be served by complete co-operation : < in remaining price control measures. I