COST OF LIVING.

King Country Chronicle, Volume VI, Issue 497, 4 September 1912, Page 3

COST OF LIVING.

REPORT OF COMMISSION

On the question whether the cost of living has increased in New Zealand during the last 20 years, the Commission find that between the middle and latter 'nineties and the present day the cosl of living has gone up at least 16 per cent. The decrease in the average size of the family, and the increased average wage has diminished the proportion which food bears to the total expenditure, thus reducing the real rise to a little below that figure. . CAUSES OF INCREASE. The main causes for the increase are set down as follows: — 1. The increased supply of money in gold and credit, which with the increased velocity of circulation appear to have outstripped the volume of goods exchanged against them. 2. The increased demand, locally and abroad, for foodstuffs,the cost of which has been increased by the fact that the production of exporting countries such as the United States has been decreased by the movement of the rural population to the cities.

3. Local commercial and industrial combinations, monopolies, and trusts which tend to raise prices to the consumer and also to' discourage enterprise and check self reliance.

4. The relatively higher cost of dis

tribution, owing to the higher trans portation charges, the excessive number of those engaged in the work oi distribution, and the duplication ol distributing agencies.

5. The national waste involved in extravagant living, as evidenced by excessive devotion to luxury, sports, and unwise recreation; lack of economy in local and national governmental services; wasteful domestic methods among the great mass of the people rapid changes of fashion, particularly in clothes and and the devotion of an increasing proportion of wealth to non-productive uses.

6. Increased local and national taxation; and the operation of protective :ariffs and trusts abroad in raising ;he first cost of imported articles, and ;he New Zealand protective tariff,

especially in regard to taxation nut the necessaries of life. 7. Failure to attain that national efficiency which can only be secured by a well-considered and properly coordinated scheme of education, general, industrial, commercial, and domestic. TARIFF AND PRICES. The report states that the prices of articles placed on the free list fell considerably during the period of rising prices, but that where combinations had secured control 'the prices were prevented from falling. Estimates are given to the number of workers in protected industries, and the amount of protection afforded to each. It is pointed out that the great primary industries, from which the prosperity of the country arises, and which provide employment for the bulk of the population, are unprotected. The farmer, miner, flaxmiller, and those outside the protected industries have to pay higher prices for commodities to afford protection to the workers in the protected industries. The Commission is of opinion that highly-protected industries have increased the cost of living to the great majority of the people, and that the duties on all classs of foodstuffs and on the necessaries of life should be abolished. It is recognised, however, that to remove- the protection from various industries which have been started in New Zealand would amount to almost confiscation of property but the Commission believes that it would be in the best interests of the community as a whole if no further encouragement should be given in the form of protective duties. It is proposed that a system of bounties is more satisfactory in every way, and would give all the encouragement necessary to help any useful industry into active being, The Commissioners recommend that the present duties on boots should be altered to 2 per cent, ad valorem; that the duty of 2d per lb on biscuits and confectionery should be made 20 per cent ; that matches should be admitted with a 20 per cent, duty; ' and that timber, potted, preserved or salted fish should be admitted duty ! free. !

The Commission further recommends that all railway rates differentiating between imported and New Zealand goods of the same class, especially coal timber, and machinery, should be abolished in favour of uniform rates. Among the recommendations drafted by the Commission was one to the effect that taxation should be imposed upon land values, so as to secure to the State a portion of the va'ue created by the State, while guaranteeing to the land-owner the full fruits of his own industry and ensuring to the community the most economical distribution of the fund thus built up. The Commission was, however divided on this matter, only four of the eight members supporting it fully, and the following reservations were added: There shall be no discouragement to the settlement and production through the rate of increment tax being fixed so high as to leave the landlord no means of recouping the losses incurred by him in bad years out of his income received in good times; and the valuation shall be made by an authority whose tenure of office is quite independent of political conditions.