Control And Its Consequences

Northern Advocate, 23 January 1939, Page 6

Control And Its Consequences

THE Hon. D. G. Sullivan’s intimation that the Government will take drastic steps against merchants or retailers who raise prices to the consumers, on account of shortage caused through import, restrictions, will certainly be welcome to the buying public. At the same time it is paradoxical that such a pronouncement should have to be mp.de at all. The original conception of the import restriction policy suggested that only luxuries were to be affected. Surely those businesses handling luxury lines, whose turnover has been cut down, in some cases by 75 per cent, or even more, are entitled to follow the ordinary business practice of loading a greater proportion of their fixed charges on to each article sold. If they are not allowed to do this they will have to go out of business. In fact, the probability is that many will have to do so. whether or not they are allowed to charge exti’a prices for their goods.

Moreover, if import control is working out according to the Government’s original conception, only luxuries would be affected, and it should not need to concern itself very greatly with these. The truth is, however, that hundreds of articles in everyday use, among people of all classes, are now found to be affected. Tinned foods, for example, are quite important to practically every housewife. Imports of these are to be severely curtailed. In due course, no doubt, New Zealand industries will be able to make up the deficiency, wholly or in part. It is known that the Government has ideas about reopening the fish cannery at Totara North. But all this will take time. In the meantime, whether or not prices are increased, there will apparently not be enough tinned foodstuff on the local market to satisfy the demand. The possibility that internal prices would be further raised is one that probably did not occur to the Government at all when it hurriedly brought its latest scheme of control. Or, if the possibility did occur, the urgency was ■ such that it had to be disregarded. Past experience, however, has shown that every system of control has an effect on living costs. Whether' or not New Zealand industries prosper under the new order of things, costs are likely to rise, and the true value of money is likely to diminish.