PRICE CONTROL IN DOMINION

Southland Times, Issue 24421, 29 April 1941, Page 4

PRICE CONTROL IN DOMINION

REPLY TO DRAPERY TRADE’S COMPLAINT

(P.A.) WELLINGTON, April 28. Replying to statements by the New Zealand Federation of Drapers, Clothiers and Retailers, which claimed that the tribunal’s formula was unjust and unworkable, the Price Tribunal says it has always endeavoured to treat each case on its merits. Soon after the outbreak of war the Drapers' Federation asked the tribunal for special treatment in the administration of price control. The federation claimed that if it was allowed to increase its prices only by the amount of the increased costs, its trade would be bankrupted. The tribunal states that an investigation showed that drapery turnover had been increased over the pre-war figures and there vzas no fear that the results prophesied by the drapers would occur. The tribunal also says that it has been disappointed with the lack of cooperation by the drapery trade. It worked out a system to avoid individual applications being made for price increases, but in several large towns the drapers had consistently failed to cooperate. NEW SYSTEM PLANNED

An entirely new procedure for the control of prices was visualized in the stabilization plan, said the Minister of Industries and Commerce (the Hon. D. G. Sullivan) during an address to the recent Labour Party Conference. On the adoption of the plan, he added, the general idea was to confine the operations of the Price Tribunal and price fixation to a fairly substantial list of essential commodities and to allow other lines not in those categories to go free. That meant a very substantial reorganization of the Price Tribunal. Referring to the policing of prices, Mr Sullivan said that a number of additional inspectors was being appointed for this purpose. It was true that magistrates had been very lenient in the penalties they imposed for breaches of the regulations, but he was pleased to be able to say that they were now taking a more serious view of their responsibilities and some very substantial penalties had recently been imposed. That would act as a deterrent.

“I believe that with increased penalties and the policing of prices a better job will be done,” he added. Referring to a suggestion that authorized price increases should be published, Mr Sullivan said that if that had been done in the past the general effect would have been to lift prices. However, his officers were now working on a plan under which each shopkeeper would be required to put up in his shop a list of the prices he was authorized to charge.