VIEWS REAFFIRMED

Otago Daily Times, Issue 26783, 28 May 1948, Page 5

VIEWS REAFFIRMED

PRICES IN AUSTRALIA MR SULLIVAN SURPRISED AT CHALLENGE P.A. WELLINGTON, ‘May 27. “ I am surprised that my statement concerning Australian prices has been challenged by the Press Association's special correspondent in Australia," said Mr W. Sullivan, M.P. for Bay of Plenty, in a statement to-day. He observed that it would be natural to expect lower prices for goods produced on a 44-hour week basis, and such was the case. Price control in Australia, which Mr Sullivan described as “ inquisitorial and oppressive,’’ appeared to be a negligible factor in holding prices. “Because of the recent introduction of a 40-hour week in Australia,” said Mr Sullivan, “prices there are bound to rise as the result of increased labour costs and overhead, but such costs are not yet fully reflected in prices.” But for numerous strikes and go-slows in Australia, instigated by both Socialist and Communist extremists, the cost of living there would be lower still, he said. . .... Mr Sullivan said his published stetements on housing costs in Australia were based on information from official sources. “In conversation, Mr Chifley. Prime Minister of Australia, mentioned to me that he had been impressed with what he called ‘ the very high cost’ of housing in New Zealand which he had noticed himself during his recent visit.’! • . Citrus. fruit and fruit generally, with the possible exception of apples, were much cheaper than in New Zealand. Mr Sullivan continued, and, except for some basic foodstuffs, which in New Zealand were heavily subsidised. butter being an obvious example, - Australian grocery prices were lower. There was nothing wrong with the quality of shirts he bought for 10s and 18s respectively. “Quite apart from prices, it is most noticeable that a much wider variety of goods is obtainable in Australian shops. Doubtless this is due to Australia having virtually abolished import restrictions on goods from sterling areas, whereas New Zealand still operates a muddle system designed to produce gluts in some' lines and acute shortages in others, including materials required by industry.” Mr Sullivan concluded. A previous statement by Mr Sullivan that in his opinion New Zealand was a much more expensive country to live in than Australia, caused some indignation among New Zealanders living in the Commonwealth, wrote Mr C. R. Mentiplay, N.Z.P.A. special correspondent in Australia. “It is plain that Mr Sullivan had a pleasant time in his spare moments window shopping.” said one housewife, formerly of Auckland, on reading the cabled account of Mr Sullivan’s speech at Opotiki. “He and Mrs Sullivan would not have been so happy had they bought and tried to wear some of the bargain clothing they saw displayed.” The general opinion was that, though Australians provided each year £30,000,000 in direct taxation so that the retail prices of tea. milk, potatoes, cotton, wool, and other necessities might be eased, the cost of living in Australia was appreciably higher than in New Zealand. The price of fruit and building costs were also high, and shirts were of poor quality.