CHEAPER CLOTHES

Otago Daily Times, Issue 25673, 23 October 1944, Page 4

CHEAPER CLOTHES

MEN’S WEAR AFFECTED SUBSIDY PLAN ADOPTED (Special) AUCKLAND, Oct. 21. Through a subsidy payable by the Government to manufacturers, a plan has been evolved to reduce the retail prices of certain lines of clothing, such as men’s suits, shirts, pyjamas, and overalls, to the level ruling at December, 1942, the date of the introduction of the stablisation policy. The scheme will apply only to lower and mediumgrade materials, higher grades not being affected. It is understod that new wholesale and retail prices will be fixed by the Price Tribunal, and some reductions from the present levels can be expected. Although lines carrying the new subsidy are available for delivery by some Auckland manufacturers, supplies will not be large, as many firms are still engaged on urgent war contrßcts The subsidy is to be paid on the yardage of material used and not on the finished product, the amount being fixed for each line individually. These figures will be fixed, by the Price Tribunal, after estimates have been forwarded by manufacturers. The manufacturer is required to forward samples of the materials, and the cost in December, 1942. Where materials are affected which were not on the market at that time, the manufacturer or importer is called on to estimate the cost. On these figures, the Price Tribunal then fixes wholesale and retail prices. It is understood that the payment of the subsidy will involve large sums. Manufacturers and importers will submit claims each month; which will be met on a monthly account from the Treasury. Audit certificates will be necessary to prove claims, and manufacturers will be' subject to a " spot ” inspection at any time to have their prices checked. Although many manufacturers have been rather chary in accepting any scheme involving subsidies, it is considered by many that they could not continue facing up to the rise since 1942 without some such treatment. It is understood that ( some difficulty was experienced in arriving at a suitable method of administering the scheme, but the majority have agreed to the plan in its present form.