When Subsidies Go These Prices May Rule

Northern Advocate, 29 August 1947, Page 3

When Subsidies Go These Prices May Rule

(Special) WELLINGTON, This Day. ESTIMATES of the effect of the lifting of subsidies on the retail prices of a number of commodities and services in common : use were given by Mr C. Carr (G —Timaru) in his speech in the House of Representatives last night. He referred to subsidies as a successful part of the Govern-1 ment’s stabilisation policy. |

Mr Carr said there would have to be an approximate retail price increase of 4d a dozen in the case of eggs, to cancel out the floor subsidy, and a further 3d a dozen to make up for the removal of the wheat and flour subsidy. Other price increases which it was estimated would be necessary to cover

the removal of subsidies were given j by Mr Carr as follows: Apples and pears, Ad per lb; bacon j and ham 2:/d to 3d per lb; milk, bottl-! ed and pasteurised, lfd a quart; j prunes, 3Ad per lb; meat. Id to ljdl per lb: sugar, 2|d per lb; tea, 2/- to j 2/2 per lb; butter, s£d per lb; cheese, j 3d per lb; coal. 6d a cwt. bag; bread, j Id per 21b loaf; flour (wholesale), £7/5/a ton; footwear, 4 per cent increase; tobacco, 2Jd a 2oz packet; cigarettes, j Ad a packet of 10; domestic gas sup- j ply, 1/- to 3/- a month; railway pas- j senger fares, 15 per cent increase. i FURTHER WAGES INCREASE. j Further wages increases will be 1 sought by the Federation of Labour j in view of the pending withdrawal nlj subsidies on certain commodities and! an anticipated rise in the cost of liv-j ing. The national council of the federa-j lion yesterday made the following statement: — i “The council is concerned with thej fact that the restrivtive nature of i the economic Stabilisation Emergency; Regulations and the policy of the | court have been responsibe for the; ciaims of the federation not being j achieved. j . “The council affirms the post-war ‘ stabilisation policy of moving toward! progressive increased production and j r. rigid restriction of increased pro-; fits respiting from such increased pro- I duction to ensure an advance in the j living standards of working people, i with regular adjustments in wages to I stimulate industry, and thus ensure [ the consumption of the increasing vol- j ume of goods and services as they be-j come available. “With increases in the cost ot living I arising from the withdrawal of sub-j sidics, the national council authorises the national executive to proceed for j increased wages rates.” | I