PRICE CONTROL IN NEW ZEALAND

Southland Times, Issue 23674, 24 November 1938, Page 5

PRICE CONTROL IN NEW ZEALAND

AUSTRALIAN REPORT CRITICAL “SUSPICION OF rOLrnCAI, INFLUENCE" ' (United Press Assn—Telegraph Copyright) (Received November 24,12.50 a.m.) SYDNEY. November 23. In his report on tne New Zealand system of controlling commodity and other prices, the Auditor-General _ (Mr John Spence) expresses the opinion that the administrative control of prices and industry cannot be altogether free from suspicion of political influence. The report, which was tabled in the Legislative Assembly tonight, states that prices cannot be kept down permanently in the face of rising costs, and the existence of departmental machinery had acted as a corrective to excessive increases and as a deterrent to exploitation of the consumer. _ “The impression I formed is that control of prices and industry in New Zealand can create many difficulties for. a Government, and that a real test of its effectiveness and value is still to come, said Mr Spence. “The establishment and maintenance of machinery for price control so that it may be available for use when required is valuable, but. if the objective is the control of prices only, the machinery should be used mainly to regulate the prices of necessary commodities and put in motion only when it is demonstrated that Government intervention is advisable in the public interest ”. Mr Spence added that the activities of the New Zealand Department of Industries and Commerce had served as a brake on increasing prices, but under the influence of higher wages, shorter hours and more liberal, working conditions both costs and prices had undoubtedly risen. Ori the other hand, the machinery for the exclusive purchase and sale of flour had worked effectively and efficiently. Mr Spence commented upon the elimination of competition from the milling trade, and expressed the opinion that the system at present, employed should reduce selling and distribution costs and keep down the price of flour.