STABILIZATION OF PRICES

Southland Times, Issue 24521, 23 August 1941, Page 6

STABILIZATION OF PRICES

LIST OF ESSENTIAL COMMODITIES FOOD CLOTHING AND PUBLIC SERVICES (P.A.) WELLINGTON, August 22. A range of 38 essential commodities is to be established in price as from September 1. This is an instalment of the Government’s policy of price stabilization and is in accord with the recommendations of the Economic Stabilization Conference. In making the announcement, the acting Prime Minister (the Hon. W. Nash) said the decision was made in consultation with the Minister of Industries and Commerce (the Hon. D. G. Sullivan) and the Price Investigation Tribunal. It would be recalled, said Mr Nash, that the Economic Stabilization Conference recommended that the prices of essential foodstuffs, standard articles, clothing and footwear and public services, fuel and light should be stabilized. The following items which came within this category had now been selected for stabilization from September 1:—

Foodstuffs.— Meat, flour, milk, sugar, bacon, cheese, honey, bread, eggs, butter, coffee, condensed milk, tea, rolled oats, oatmeal, baking powder, salt. New Zealand-Made Clothing, and Footwear.— Men’s, women’s, boys’ and girls’ shoes (New Zealand leather in each case), men’s all-wool underwear, women’s woollen underwear, boys’ allwool underwear, boys’ all-wool jerseys, girls’ all-wool underwear, men’s woollen socks, boys’ school hose, woollen piece goods, knitting wools, blankets, suitings (from New Zealand wools), shoe repairs. Public Services, Fuel and Light.— Tram fares, electric light, gas, coal, coke.

Referring to existing conditions Mr Nash explained that a measure of stability had already been given to the prices of some of these commodities. Meat, for instance, was recently subject to a price order which brought an all-round reduction from a half-penny to a penny per lb and, subject to seasonal influences, stabilization would apply to the reduced prices.

EGGS AND MILK “The price of eggs in the main centres is now under complete control except for normal seasonal fluctuations,” he said. “Wholesale prices have been kept at pre-war levels and an order was recently gazetted fixing retail margins. As regards milk, seasonal variation is the only factor which modifies stabilization of the price. Flour, bread, sugar, coal and coke have been maintained at pre-war prices as a result of subsidies granted by the Government. The retail price of bread is uniformly fixed at 5Jd. for the standard 21b loaf in the main centres and 6d. in the country districts.”

Although there was the same relative uniformity in the wholesale price of flour, some further action was necessary to fix the retail margins and steps were being taken to do this. Butter was ii a similar position. The price of tea had given the Government considerable concern. Serious increases in price had taken place recently as a result of conditions on the Ceylon market, but in view of the fact that tea was a staple beverage in most home, the Government was determined that no further increases in cost should be passed on to the consumer. Coffee drinkers would not be at a disadvantage because of this, for stabilization would also apply to coffee. The procedure the Government would adopt in respect to all these goods and services was to rely on the Price Investigation Tribunal as at present to examine applications made for increases in price because of higher costs.