COST OF LIVING

Otago Witness, Issue 3448, 13 April 1920, Page 25

COST OF LIVING

STATEMENT. BY PRIME MINISTER. HIGHLY FAVOURED COUNTRY. , NEW ZEALAND'S POSITION. WELLINGTON, April 9. In the course of a long statement to a Dominion representative on the cost of living, the Prime Minister (the Hon. W. F. Masseyj, said he had had the opportunity of studying conditions abroad at first hand, and his feeling was that in New Zealand the people were infinitely better off than the population of other countries. The position in New Zealand undoubtedly called for close watching, but the forces affecting prices were often beyond effective control here, and control unless properly exercised might mean famine in future. The following table showed that we still held a most favourable position. with respect to food prices as compared with other countries, the • table showing the percentage of increases in the cost of livinec between July, 1914, and ths months shown in the various countries: — Per cent. India (Calcutta), November, 1919 ... 51 Spain. March, 1919 57 Australia. December, 1919 58 New Zealand, March. 1920 62 South Africa. November, 1919 67 United States. November. 1919 8^ Canada. November, 1919 92 Holland (Amsterdam). November, 1919 102 Denmark. July, 1919 112 United Kingdom, January, 1920 136 Switzerland. September. 1919 141 France (Paris). December. 1919 IBS Norway November, 1919 197 Swp'riVn.' DfoemWr. 1919 ... '. 207 Belgium (Brussels). October. 1919 ... 24ft Italy (Rome), November. 1919 246 Note: The increase in New Zealand between July, 1914, and December, 1919, 'was 55 per cent., which would place the dominion second on tho list as at the end of 1919. Everyone in commerce, Mr Massey continued, knew the extreme difficulty in securing supplies, and at no time in the history of the dominion was the demand for imported goods so great and the shelves so bare. The Government would do its duty in facing the position fearlessly, but it had to be careful "and just. He would again stress that the Government had given every possible opportunity to the public of having a full investigation made into all cases in which they considered unreasonable profits were being made, and_ tho Government looked to them to exercise their powers in this direction, as without the assistance of the public the full benefit of the legislation recently passed could not be realised. THE BOARD OF TRADE. OUTLINE OF ACTIVITIES. (From Our Own Correspondent.) WELLINGTON, April 9. The Prime Minister today made a lengthy statement in regard to the activities of "the Board of Trade, particularly in regard to dealing with the high cost of living. It was evident, he said, that the local tribunal would have to cope with a good deal of work. Numerous complaints as to unreasonably high prices had been brought before the tribunals, covering tea, furniture, hardware, meat, coal, tobacco and cigarettes, sugar, agricultural implements, cutlery, binder twine, thread, medicines, seeds, flour, oatmeal, footwear, benzine, leather, and house rent. Accountants had been attaohed to each of the tribunals for the purpose of making the necessary inquiries and investigations. For the purpoe of investigations concerning articles with relation to which women's special knowledge was required, Mr Massey stated that he had approved of the services of women being employed, and it was probable in this connection that the services of expert inspectors attached to the Labour Department would be utilised. He wished specially to stress that the names of persons making complaints were not disclosed by the tribunals. In connection with inquiries prior to the establishment of the tribunal, the Board of Trade had instructed Crown, solicitors to institute proceedings under section 32 of the Board of Trade Act for charging unreasonably high prices. . One case had already been heard in Wellington, and other cases were pending in Hawera, Lawrence, Dunedin, Christchurch, New Plymouth and Auckland. The Board of Trade control had been exercised in regard to such important commodities ■ as petrol, wheat, flour, cement, and sugar, and this control laa been exercised without undue

interference with ordinary trade and buying methods. In regard to wheat, flour, and bread, the lifting of the purchase in Australia of some 60,000 tons of wheat arid its distribution oh arrival to the various flouxmillers was undertaken by tho board, in conjunction with the control of the price, sale, and distribution of wheat grown in New Zealand. Similarly the board controlled the price of flour and its distribution, and special steps had been and were being taken to control hoarding for speculative purposes. In regard to bread, rhe board was engaged in a comprehensive investigation into the cost of manufacture, cost of distribution, the recsipte from its sale, and net profits. Every baker in the dominion was to supply this information, and the work of checking, dissecting, and compiling would be considerable, but would furnish the Government with more information in regard to the bakery business than had ever before been obtained. The board was engaged in a comprehensive inquiry respecting the prices _of woollen goods, and was now investigating the accounts of the various woollen companies of the dominion. When this inquiry was completed it was proposed to extend it to warehouses, tailors, and retail shops. As a result of this inquiry much valuable information should be obtained, and the board should be able to check any undue increases in price in regard to locally nirn-ufactuxed clothing. Mr Massey referrred in detail to what hnd been doen in regard to cement, sugar, rides and leather, timber, etc. He pointed out that whilst the board could exercise control over essential commodities manufactured in the dominion, and over the prices charged for the same by merchants, t.iere was cons'rlerable rlifiiculty in controlling the very large number of commodities that had to be imported. The prices "of these imported commodities, including dried fruits, tmnpd fish, tea, cocoa, coffee, rice, and other grocery lines, tohaoeo, hardware, paint, woollen and cotton goods, linoleums and furnishings, crockery, chemicals and <!rugs, and artificial manures were dependent wholly upon the landed cost, and all that the Government or the Board of Trade could do was to ensure that the profits made by merchants and distributors in New Zealand were reasonable. Mr Massoy stated, in conclusion, that he had had the opportunity of studying conditions abroad at first-hand, and his feeling was that in New Zealand the people were infinitely better off than the population of ether countries. The Government would do ' its duty fearlessly, but at the same time it had to be careful and just.-