THE COST OF LIVING

Southland Times, Issue 17777, 1 October 1917, Page 5

THE COST OF LIVING

BOARD OF TRADE’S REPORT. NO PANACEA FOR PREVENTING EXPLOITATION. SUGGESTED REMEDIAL LEGISLATION. (From Our Own Correspondent.) WELLINGTON, September 26. In concluding their first annual report the members of the Board of Trade state that the board frankly confesses that it has not found during its investigations and inquiries a panacea for the increased cost of living. The fixation of prices, although force of circumstances has compelled almost every nation in the world to adopt this course, is fraught with many and obvious dangers. The conditions in New Zealand do not yet warrant a general resort to so drastic a remedy. True, the board has recommended the fixation of prices of certain commodities, and the Government has adopted its recommendations; but loss and hardships have in some instances been occasioned thereby, and these have not always fallen on those best able to bear them. It is admitted, however, that the assistance and work of the board has served as a check on combinations that might otherwise have taken advantage of their economic position to “exploit” the public—meaning thereby extracting an illegitimate gain. The usefulness of the board in this direction would be gradually enhanced if power were conferred on it by legislation making it obligatory on purveyors of goods and services (to be specified from time to time by the board) to give the board at least seven days’ notice of any intended increase in .price and the reasons for such increase. Such reasons could be disallowed, the present legislation being sufficient to deal with any trader insisting on an increase after such a decision had been come to. An increase in price may be necessary as the result of any one of a number of causes: e.g., a shortage in supplies, a rise in freights, increased cost of labour; but during war periods a trader should not be allowed to increase his price more than is necessary to recoup him for the extra cost entailed, as suffering may be caused before competition has restored the balance between supply and demand and eliminated undue profits. We believe that, with the loyal co-operation of the commercial community, the exercise of the powers hereby sought would give confidence to the great mass of the people, and that “exploitation" and “profiteering” would be effectively checked. In conclusion, the board would urge the imperative necessity that now exists for increased production, for rigid economy, for the curtailment of expenditure on luxuries, and for the elimination of waste.