LIFTING OF CONTROLS

Otago Daily Times, Issue 26792, 8 June 1948, Page 5

LIFTING OF CONTROLS

FEDERAL GOVERNMENT’S MOVE

STATES PLAN TO MEET RISE IN PRICES From C. R. Mentiplay, N.Z.P.A. Special Correspondent Rec. 11.30 p.m. SYDNEY, June 7. Since the first indications scarcely more than a week ago of the overwhelming defeat of the Chifley Government’s bid for permanent control of prices, rents and charges, Australia has been rocked by successive developments which must effect great changes in living conditions throughout the Commonwealth. In what has been described by Opposition members as a “ fit of pique,” the Government almost immediately announced the abandonment of wartime rent controls within two months, and price controls' within three. The State Governments have recovered from their shocked surprise and are now making efforts to implement legislation and prepare the necessary machinery before the dead-line is reached. It now devolves upon them to safeguard their citizens from the sharp rises in prices which would inevitably follow the complete abandonment of controls. The second development from Canberra came not entirely as a surprise. During the campaign, the Prime Minister, Mr J. B. Chifiey, said in connection with subsidies he who pays the. piper calls the tune.” In accordance with this dictum he announced within a few days of the referendum vote that consumer subsidies of more than £30,000,000 would oe abandoned. The States are now faced with the additional obstacle of re-establishing control over retail prices which must soar when they are released from three-quarters of the Commonwealth total subsidy payments. Opposition critics have openly accused the Federal Government of placing an unnecessary burden on State Governments with the idea of profiting by any chaos that may result. “The complex problems of price control are being dumped on the doorsteps of the States by the Federal regime exhibiting unwanted and even exaggerated deference of public opinion,” says the Sydney Morning Herald. “If any chaos should result the electors will know how to apportion the blame.” But the electors who expressed their Impatience with Federal controls in peace-time see one bright spot ahead First, the abandonment of subsidies will leave the Federal Government with £30,000,000 in hand. Secondly, Mr Chifley has announced that the revenue for this financial year will exceed expenditure by a similar amount. These facts, coupled with the Government alarm at the loss of popularity shown in the referendum, have given rise to the hopes that July will see heavy remissions of direct taxation. Guarded Government statements refer to Mr Chifley as “favouring giving the bulk of taxation remissions to the lower income groups.” General opinion isothat there will be taxation remissions totalling up to ££0,000,000, of which the lower wage brackets will reap the most benefit.