COST OF LIVING

Otago Daily Times, Issue 21300, 2 April 1931, Page 6

COST OF LIVING

; A SUBSTANTIAL REDUCTION i STATEMENT BY MINISTER COMPARATIVE FIGURES QUOTED (Pee United Press Association.) WELLINGTON, April 1. “The public generally, and even some members of Parliament, are unaware of the extent of the activities of the Department of Industries and Commerce in endeavouring to ensure that reductions are made in the prices of essential commodities,” stated the Minister in Charge (Mr P. A. de la Perrelle) in an interview to-day. “ The cost of production and the prices of flour and bread,” he said, “ have been and are still under investigation. Prices of- bread in a number of towns have been reduced, and, with the prospect of some reduction in the price of flour, a more general reduction in bread prices should follow. The prices of meat have been under review, and the department has assured itself that there is at present ample competition in this trade to ensure that the public receives a fair return for its outlay. The prices and distribution of fruit and vegetables formed the subject of an inquiry by a Parliamentary Committee last session, and further investigations by the department, in conjunction . with the Department of Agriculture, are proposed. The prices and cost of the distribution of fish have been under inquiry in several centres. It is- expected that this investigation will be completed and a report submitted to the Government within the next few weeks. The department is at present working on the price investigations relative to petrol, cement, and bricks.” Amongst other subjects which have been under investigation in different localities in recent months the Minister-' mentioned the price inquiries relative to sugar, butter, brain, and pollard, eggs, fertilisers, and bacon. The Minister pointed out that competition between the traders is recognised as being far more effective in keeping prices down to the lowest possible levels than any system of Government control. “In certain important trades at present,” said the Minister, “competition is so keen that goods are in some cases sold actually ■ below cost. Indeed, in the wholesale j and the retail grocery trades the prices are on such a low level that the GovernI ment is being continually pressed to take | action to protect the trader from the 1 competition of the price cutters.” The Minister proceeded to say that ' the’ department had made many inquiries In the four main centres, and in a survey of the position had found that there had been a substantial reduction in the coat of living during the past year. In regard to rent in Wellington, many instances were revealed of decreases of from 5s to 10s per week in both houses and flats. In Christchurch and Dunedin there had been reductions of from 10 per cent, to 15 per cent., while in Auckland the reduction appeared to be more general. Numbers of cases were noted of reductions ranging from 15 per cent, to 20 per cent. With respect to clothing, drapery, etc., it had been found that the reductions in the cost of imported goods had not been very marked, but in the case of locally manufactured goods of most classes the reduction ranged from 5 per cent, to 10 per cent. The reductions in meat, prices had been substantial in all the principal centres, such reductions ranging in Wellington and Christchurch from 10 per cent, to 20 per cent, for mutton and beef considered together. In Auckland the prices of beef showed 10 per cent, to 20 per cent, reduction, and mutton 15 per cent, to 35 1-3 per cent. In Dunedin the estimated average decreases were: Beef, 30 per cent.; mutton, 40 per cent. In regard to groceries and foodstuffs the reduction in the four main centres could be fairly set down at from 5 per cent, to 15 per cent., this being due in a measure to the rapid growth of the cash and carry stores causing very keen competition, and consequently lower prices. The price of milk in Wellington was reduced from 6d to 5d a quart from December 23 last. In regard to butter a substantial decrease had occurred in the price of first grade. Butter in Wellington, for instance, which 12 months ago was Is fid and Is 7d had fallen to Is Id and Is 2d per lb. Cheese, which was retailed for lid and Is per lb a year ago could be purchased to-day for 8d and 9d per lb. Many grocery shops to-day retailed bacon at Is per lb compared with Is 2d and Is 3d 12 months ago. Competition in regard to bread,, which, a year, ago was selling at 6Jd for a 21b loaf had made it possible for the public to purchase at certain stores in Wellington for 5Jd. The Minister concluded with the remark that in Auckland, Christchurch, and Dunedin there had been similar reductions, but , the instances given showed it was a fact that there had been a substantial reduction in' the cost. of living during the past' 12 months.