THE OTAGO DAILY TIMES SATURDAY, MAY 13, 1950. SELF CONTROL

Otago Daily Times, Issue 27388, 13 May 1950, Page 6

THE OTAGO DAILY TIMES SATURDAY, MAY 13, 1950. SELF CONTROL

The change from Government by regulation to Government which treats the people as responsible partners in a common enterprise is emphasised by the statement made by the Minister of Industries and Commerce, Mr Bowden, on the measures to be taken to make the adjustments which were necessary in consequence of the withdrawal of subsidies and the raising of freight rates. Instead of rigid conditions being imposed Which would embarrass trade and industry at every turn—and necessitate thfe employment of enforcement agents—the National Government has decided to adopt courses which will allow the natural laws of supply and demand to operate. Adjustment should in consequence be automatic to a degree, the period of transition should be shortened, and inconvenience lessened' all round. In order for these results to follow the removal of controls from a large number of items yet unspecified, and the declaration of a general authority to change prices where necessary, it is essential that all concerned should co-operate by discharging fairly the responsibility which is placed upon them. The appreciation which should be created by the nature of the Government’s "decision should prompt traders to play fair in return. The announcement by Mr Holland a week ago gave rise to some anxiety among those handling goods which were indirectly affected by the lifting of subsidies. These fears have been allayed. Restaurant keepers, for example, felt that their position was particularly difficult and complicated, because of the wide variety of these establishments and the number of ways in which their costs would be increased. The Government has announced that restaurants and similar places are no longer to be subject to price control. The simplest course has been adopted, and the onus is placed on the proprietors themselves to'iestimate their margins and recoup their losses while continuing to give the most reasonable service to the public. As the result of these actions the cost of living will be increased in many ways, but this effect has been deliberately calculated. It will be compensated for by a bonus on wages and by adjustments to Social Security benefits so that real costs can be met out of real income. 6 The higher costs will not be camouflaged by financial juggling. Another effect of the change’ which may be expected is that-in the freedom to calculate the new margins of costs there is a challenge to efficient management for the subsidy system extended tolerance to inefficiency.