BREAD AND FLOUR DEBATE.

Hawke's Bay Tribune, Volume XII, Issue 232, 13 September 1922, Page 7

BREAD AND FLOUR DEBATE.

THE EVILS OF RESTRICTION OF TRADE. (Contributed by the New Zealand Welfare League.) The debate which has just taken place in Parliament with reference to alleged transactions at Feilding in the matter of the sale prices of bread and flour give point to what we have contended for some time past that Ertificial restrictions on trade and commerce ought to go. In an article in October of last \ear we said: ‘‘The danger lies in ihe fact that artificial regulation of natural operations often result in creating an unnatural Condition of affairs must produce evils as bad, if not worse, than those which they try to remedy.” In his speech in June last, and again at Christchurch just recently, the league’s president, Mr. C. P. Skerrett, K.C., said “the tmie has come for the abolition of all restrictions on trade and commerce. All those recently imposed controls on business and private activities have to go.” The league is not concerned with the party features of the debate which took place in the House. Mr. Massey’s statement that “he did not instruct the Board of Trade to issue a statement that bread must not be sold under the price fixed by the Board of Trade,” will he readily accepted. The question remains as t o whether the board countenanced the issuing of any statement relating to the price at which bread and flour could be sold, and, if so, what exactly was the statement. Incidentally we would express the view that it is very undesirable that any such body as a Board of Trade should bj under political control. The immediate question for consideration, however, is what good is eventuating from the control or direction of trade by the Board of Trade? in the House it was imputed that not good but evil is resulting from present transactions. Not having any party motive we make no imputations, but we desire very much to know what good the general public now derives irom the board's The only form or State regulation that appears to us to be wanted is the removal of all restrictions of trade. If there is (gny ring operating in any manner to restrict the distribution of supplies of flour which is raising the price of bread on any section of consumers, then there is a duty on the authorities to defeat such operation. The rumour that Mr. McDonald, chairman of the board, is resigning to take up an executive position with the Flour Millers’ Association is disquieting. It is a matter that should be cleared up very promptly. The assurance of the Minister, Mr. Lee, that he is quite prepared to have an inquiry made into the allegations is one we welcome, and we trust the investigation will be of a thoroughly, comprehensive nature. It is not merely a question of answering political charges that is required but a sound businesslike investigation into the whole of the related transactions having reference to prices of supply of flour and bread, as it constitutes the most common article of diet and all increase is a burden on the family life of the masses. In common with many we desire to see reduction in the cost of living and therefore support the most careful scrutiny into the matter of bread prices.