Australian Government Has Made Far-Reaching Decisions Relinquishing Price Control

Wanganui Chronicle, 8 June 1948, Page 5

Australian Government Has Made Far-Reaching Decisions Relinquishing Price Control

(From C. R. Mcntiplay, Special N.Z.P.A, Correspondent) Received 9.10 p.m. SYDNEY, June 7 Since the first indications, scarcely more than a week ago, of the overwhelming defeat of the Chifley Government’s bid for permanent control of prices, rents and charges, Australia has been rocked by successive developments which must effect great changes in living conditions throughout the Commonwealth.

In what lias been described by the Opposition members t.s a “fit of pique,” the Government almost immediately announced the abandonment of wartime rent controls within two months, and price controls within three. State Governments have recovered from their shocked surprise, and are now making efforts to implement legislation and prepare the necessary machinery before the deadline is reached. It now devolves upon them to safeguard their citizens from sharp rises in prices which would inevitably follow the complete abandonment of controls. The second development from Canberra came not entirely as a surprise During the campaign Mr. Chifley said, in connection with subsidies: "He who pays the piper calls the tune.” In accordance with this dictum, he announced, within a few days of the referendum vote, that consumer subsidies of more than £30,000,000 would be abandoned. States are now faced with the additional obstacle of re-establishing control over retail prices, which must soar when they are released from three-quarters of the Commonwealth total subsidy payments. Opposition critics have openly ac-

cused the Federal Government of placing an unnecessary burden on the State Governments with the idea of profiting by any chaos that may result. "The complex problems of price control are being dumped on the doorsteps of the States by the Federal regime exhibiting an unwontea and even exaggerated deference of public opinion,” says the “Sydney Morning Herald.” "If any chaos should result the electors will know how to apportion the blame." But the electors, who expressed their impatience with Federal controls in peacetime, see one bright spot ahead. Firstly, the abandonment of subsidies will leave the Federal Government with £30,000,000 In hand. Secondly, Mr. Chifley has announced that the revenue for this financial year will exceed the expenditure by a similar amount. These facts, coupled with Government alarm at the loss of popularity shown in the referendum, have given rise to hope that July will see heavy remissions of direct taxation. Guarded Government statements refer to Mr. Chifley as "favouring giving the bulk of taxation remissions to the lower income groups.” The general opinion is that there i will be taxation remissions totalling I up to £50,000,000, of which the lower wage brackets will reap the most I benefit.