COST OF LIVING.

New Zealand Herald, Volume LXVIII, Issue 20981, 18 September 1931, Page 10

COST OF LIVING.

EFFECT OF LOWER WAGES. REDUCTIONS IN MANY CASES. CLOSE INVESTIGATIONS MADE. [BY TELEGIIAPH.—SPECIAL ItErOTtTETt.] WELLINGTON, Thursday. 'the efforts of the Government to reduce the cost of living by closely investigating the prices charged by retailers for specific commodities aro outlined in the report of the Industiies and Commerce Department, which was presented to tho House of Representatives this evening. Investigations have been pursued to ensure that the benefit of the general reduction in wages should be passed on to the public. Prices of flour and bread have been under investigation, and reports have been prepared showing tho position of different interests and the costs involved. The report states that as a result of the department's inquiries, combined with the influence of competition among traders, the prices of bread have definitely fallen in a number of cities and towns. Tho prices of meat have been under review and.the department has assured itself that there is ample competition in this trade to ensure that the public receives a fair return for its outlay. The prices and tho distribution costs of fish have been the subject of a report recently submitted for thp consideration of tliii Government.

Investigations arc being earned out by (lie department into the prices and costs of distribution of petrol anrl cement, and into the costs of production and the prices of bricks and earthenware pipes, inquiries have also been made relative to sugar, butter, bran and pollard, eggs, fertilisers, and bacon. The report adds thaL both as a result of competition and of the prevailing depression, the profits of many traders have been seriously diminished, and in numerous instances substantial losses have occurred. Under such circumstances, it cannot reasonably be expected that reduced labour costs will immediately be attended by further reductions in wholesale or retail prices. Moreover, in some trades and industries, general reductions in salaries and wages have not yet been effected, and in cases where reductions have beeu made, the time which has elapsed is yet too short to reveal the benefit of reduced labour costs in reduced wholesale or retail prices. Wherever possible, however, effective steps are being taken by the department to ensure that reductions in salaries and wages are passed on to the public in the form of lower prices, and evidence is forthcoming that reductions in prices, due to lower wage costs, are definitely being made in many instances and in respect of a wido range of commodities and services.