Living Costs Must Be Held-Sullivan

Northern Advocate, 21 December 1942, Page 4

Living Costs Must Be Held-Sullivan

WELLINGTON, This Day. “It is not intended that living costs will be permitted to rise,” said the Minister for Stabilisation (Mr. Sullivan) today, referring to the stabilisation programme.

“This can be achieved if all sections of the community appreciate that their prices and wages, commissions and fees are the chief factors in determining living costs, and co-operate in achieving stabilisation.” Mr. Sullivan said provision which had been made for a wage increase and lifting of the ceiling for every type of remuneration if the wartime price index showed increase in the cost of living, was not an admission that prices would rise but a recognition that farmers’ prices and iwages and other remuneration could not fairly be left at a fixed level unless living costs were also held. The Minister stressed that the prices index was carefully weighted to give full significance to important commodities of every-day consumption, such as bread, milk, butter and meat as against such items as furniture, which, though expensive, represented only a small weekly outlay because of their longevity.

The Government, to keep faith with the public, would see that if any rise in price became necessary it would be compensated for by some reduction in the price of another indexed commodity, so that the average household budget would be left exactly where it was. This undertaking to do everything possible to keep prices on an even keel was surely what the consumer (wanted.