COST OF LIVING.

Wanganui Chronicle, Volume LXXVI, Issue 18019, 6 November 1920, Page 5

COST OF LIVING.

MR. MASSEY’S MYSTERIOUS MESSAGE.

PARLIAMENT’S CURIOSITY AROUSED. PREMIER THINKS END OF HIGH PRICES HAS COME. (By Telegraph.) (From Our Parliamentary Special.) WELLINGTON, Nov. 5. The Prime Minister yesterday referred in a vague way to legislation which had not teen thought of till a day or two ago. When the House of Representatives met to-day Mr Holland (Buller) asked whether the legislation of an important character thus forecasted was in connection with the bonus granted by the Court on the cost of living, and what was its character. The Prime Minister said that the question was one which he. could not answer. The matter was still under consideration, and he did not expect to have it finally settled till Monday or Tuesday of next week. Mr Holland: It is not in connection with the Arbitration Court?

The Prime Minister: I did not say that. If the hon. gentleman has got it in his mind that it is meant to go back on the decision of Mr Justice Stringer he can get rid of the idea, for that is not intended. Mr McCombs (Lyttelton) asked if the Government, in view of the recent proceedings of the Arbitration Court, would immediately introduce legislation to enable the Court to make the cost of living bonuses operative simultaneously throughout New Zealand, and that the bonuses should be based on the current prices workers had to pay, instead of the average prices for the previous six months. He stated that the recent decision of the Court was based on an average increase of 66.64 per cent., instead of an advance of 72.80 per cent, shown in current prices, and it took no account of the Increase in the price of butter, because that was not included in the Statistician’s September figures. The Prime Minister said he had not seen the full report of the decision, but the report he had read indicated tfhat it was not final. He noticed from the reports in the Christchurch papers that, the Judge had said that the bonus would be paid unless good cause was shown to the contrary. “I may say at once that I cannot think that the figures are correct.” Mr McCombs: Hear, hear!

Mr Massey: I am asking my colleagues to have the figures looked into by thoroughly competent men. I cannot see that there has been an increase in the cost of living just, recently. Potatoes, he went on, w’ere about one-third of the prices of last year, and everybody ate potatoes. He had heard of 1 5 tons of potatoes sold in a pit for 1 /- a cwt.

Mr Fraser: The retailer does not get the benefit . Mr Massey said that when prices had fallen as low as this it. must follow that there was a fall all over New Zealand. He had noticed advertisements 'of tea reduced by sixpence per pound. It was reported that the bottom had fallen out of the hides market, and that hides were practically unsaleable. That mean a reduction in the price of leather, and subsequently of boots. Then they all knew about the position of crossbred wool. Mr McCombs: What about clothing? Mr Massey: I am not interested in luxuries. The hon. member can look after that. I am only concerned with the necessities of life. He saw in a shop window recently a suit marked at £5/5/-, and it was stated —he did not know how correctly—that that was a reduction ot £2/10/-. Hon. A. i. Ngata: They put them up> and then bring them down.

Mr Massey continued that it was quite evident that there was a decrease already in the cost of living—he did not say an all-round decrease. He saw a suggestion made by a business man that there would fie a. big reduction in the cost of goods after Christmas. It was suggested that tradespeople would try to get the most, they could for the Christmas trade, and that after that prices would come down. He thought that already they were around the corner and that they might look for a decrease in the cost of living. He did not know how it would affect the country’s business in other directions, but it would give relief In that way.