No Wish To Penalise Businessmen

Northern Advocate, 11 July 1936, Page 8

No Wish To Penalise Businessmen

[Per Press Association. — Covvright.l WELLINGTON, This Day. F a statement last night in reference to the discussion taking place on the subject of rising prices the Minister of industries , and Commerce, the , Hon. D. G. £ Sullivan, said that while some business men here and there were disturbed about the situation in regard to alleged increases in - costs arising out of the Labour % legislation, in the main, it was his experience that it was newspapercreated agitation. There appeared to be an assumption -in some quarters that the Government Would try to prevent any increase in prices, irrespective of whether such increase were justified by the true facts of the situation. The . Government had never taken lip that position, said the Minister, but was determined that there should hot be exploitation. It was all the time a, question of finding the true position as between an increased cost arising out of increased wages and Shortened hours on the one hand, and increased turnover created by increased spending power, through increased wages as a*, compensatory factor, on the other hand.

A Little Panic-Stricken. * During the period that he had been Minister of Industries and Commerce, said Mr Sullivan, he had had a fair amount of experience in dealing with tfie question of supposed increased costs and the demand for increased prices. Business men were sometimes apt to become a little panicStricken, and their estimate of the extent of their increased costs and the increased prices necessary to meet such' increased costs was nearly always greatly exaggerated. V The Department of Industries and Commerce, which contained men experienced in private business as well as in public service, had great skill in analysing costings submitted and in correcting estimates put forward. Ultimately, a satisfactory settlement had always been arrived at. This settlement was based upon true increases in cost. It took into consideration the compensatory factor of increased turnover ’.and provided for such increase in price as was fully justified, by the bedrock facts revealed in the investigation. The Objective.

It would thus be seen that, in the regulation of prices, the Government’s objective was to find that point which reconciled justice to the business affected, with protection of the public against exploitation through excessive increases in price. Most business men with whom he had dealt had been quite reasonable about the matter

Minister Clarifies Rising Price Question

and„ although timid at first, had helpfully co-operated in the inquiry and loyally accepted the decisions made.

The Minister concluded by saying he hoped this statement would reveal the fact that the Government had no wish to penalise business men, but desired to elucidate the facts and, by making decisions consonant with the facts, to help both the business people and the public. - It would probably be necessary to provide the machinery to handle the whole price situation on a comprehensive scale.