FIXATION OF PRICES

Otago Daily Times, Issue 22259, 11 May 1934, Page 6

FIXATION OF PRICES

to riiE EDITOB. Sib, —The Associated. Chambers of Commerce of New Zealand reported (April, 1034) that "there would be no fixing of prices of\,petrol by the Government under the Act "passed in that regard at last session of Parliament was commended by the executive. In a statement circulated through the press the executive dealt with Australia's disastrous war-time experiment in Government price fixation, arid pointed to the chaotic conditions that would follow any attempt in New Zealand to fix prices—whether maximum or minimum —of commodities generally." This report issued, by the Minister of Industries and Commerce and the executive of the Associated Chambers in regard to fixation of prices is, to my mind, nothing more or less than brutal—designed to assist big business and to stifle small business men. Insurance companies have scale charges, and our Government is a party to them. Stock and station agency companies, professions, etc., also have scale charges. Why should our Government object to other businesses having the legal right to do the same thing? Now I wish you to consider our conditions to-day and what they have been during the last three years. I emphatically affirm that our living conditions among the building trades during the past three years have been far worse than any war-time experience in New Zealand or Australia. The. want of a definite plan to control our internal affairs is the reason for at least half of to-day's troubles. Business in the buildine trades is being conducted by far too many persons on a basis that cannot possibly pay a living wage, let alone a reasonable margin of profit. Tt is a" very well for a peroon to say that the Arbitration Court has fixed

a minimum wage, but it is almost useless and a menace to established firms while persons who are parties to awards are the only persons who are forced to pay award wages. Hundreds of men are allowed to tender for contracts or do day work, and are forced to do the work at a price that cannot net them a living wage. The competition we have to contend with to-day in the building trades is a tragedy for the man with any fine feelings. Good tradesmen are being forced by force of circumstances to work for less than 10s per day so that they may earn enough to exist. A commercial traveller recently informed me of a case where a good tradesman (a painter) made up a tender, allowing 10s per day for his labour, and was not successful in getting the 'job. While the tradesman was talking about this experience he really broke down, and swore that he would take the next job at 5s per day. This state of affairs is little better than we find in Russia, and it is high time that the Government stepped in and stopped it. This is not the only tragic incident I know of; there are mammore. The Government should give all trade associations the leeal right to fi,\prices. The public would be protected if the Government reserved the right to step in and levy a penalty on excessive charges.—l am., etc., Weston. Oamaru, May 9.