PRICE CONTROL

New Zealand Herald, Volume 81, Issue 24793, 17 January 1944, Page 4

PRICE CONTROL

r ONE YEAB'S OPERATION CLAIMS BY MINISTER The effects of stabilisation in New Zealand after one year of operation were reviewed by the deputy-Prime Minister, the Hon. D. G, Sullivan, in a broadcast last night. Mr. Sullivan said that, by preventing inflation, stabilisation protected all forms of industry from dislocation and rises in costs that would hinder production, and he claimed that New Zealand s measuies to prevent rises in, the cost of living had been successful. This applied not only during the past year, when the full stabilisation programme had been operating, but throughout the war. By the test of comparison with what happened in the last war, it could be seen how prices had been held by the introduction of this measure. I'ood prices as a whole had risen only onefifth as much as they did in the last waff. During tho past year of full stabilisation essential food prices had not risen at all, but in 1918, the corresponding period oi; the last war, food prices had increased 20 per cent. "Nobody claims that there has been no increase in prices whatever, Mr. Sullivan said. "This must be expected, particularly in overseas goods, but our controls put a brake on these increases once the goods reach New Zealand. ~S\e permit no increase whatever on a wide range of essentials." Mr. Sullivan said large numbers ot people in New Zealand overlooked the benefits they were receiving from stabilisation, such as the long iist of everydav items the prices of which had been effectively held, and only noticed the exceptional prices of certain commodities which did not come fully within the range of the controls. To some New Zealanders who had > had to give tip opportunities ior profit created by wartime problems of supply, or opportunities ot getting higher wages created by wartime problems of manpower, only the restrictive effects of stabilisation were apparent. These people forgot that the purpose of stabilisation was to ensure that the value of the'profits or wages they were already getting should not be destroyed by inflation.