ADJUSTMENT Of PRICES OF GOODS FOLLOWING REMOVAL OF SUBSIDIES

Wanganui Chronicle, 17 May 1950, Page 5

ADJUSTMENT Of PRICES OF GOODS FOLLOWING REMOVAL OF SUBSIDIES

WELLINGTON, Last Night (P.A.) —An important price order, authorising a general adjustment in prices following the removal of subsidies and increases in freight, was gazetted tonight. The order gives general authority £or increases in prices of any goods except a number which are specifically excluded from the scope of the order. An explanatory note published with the price order states: "This price order authorises an adjustment of prices where an increase in the cost of any goods to the vendor has been caused by removal of subsidies and an increase in freight charges. The order does not authorise any adjustment of prices for goods and services which are specifically excluded from its scope; nor will it affect any price order or approval made or given after the coming into force of this order. The authorisation relates only to actual increased costs due to the removal of subsidies and increase in freight rates, and the order does not authorise a vendor who is now permitted to charge a percentage on cost to add that percentage to any increased costs referred to in the order.”

The order itself, which takes effect as from today, May 16, says it will not be deemed a breach of any price order (except those for the items listed below) if adjustments are made to the price of any goods to provide for: (a) The actual amount by which the cost of the goods to the vendor has been increased as the result of the removal since May 5 of subsidies on any of the ingredients used in the manufacture of goods. (b) The actual amount by which the cost of the goods to the vendor has been increased by or as the result of any increase since May 14 in freight charges payable in respect of the carriage of the goods within New Zealand.

Nothing in the order authorises the charging of prices greater than the sum of the authorised prices on May 5, and of any additional costs resulting from alterations in subsidies and freights. Where new prices in terms of the order are not an exact number of halfpence, they may be computed to the next upward halfpenny. A schedule to the order lists those goods and services excluded from itand for which it accordingly does not authorise any price increases. These items are those for which prices already have been adjusted or are items in respect of which the Government and Price Tribunal wish to keep in close touch with any price movements. These items will be examined individually and decisions will be given in individual price orders or decisions. The items listed in the schedule are: Apples and pears, bananas, barley (feed and malting), bread, butter, cheese (Cheddar under four months’ old), coal, cocoa, corn, sacks, eggs, flour and wheatmeal, honey, hotel tariffs, lemons (New Zealand other than Meyer), maize, maize for green food, matches (N.Z.), matches (TipTop), evaporated milk, condensed milk milk and cream, milk, cream to cream vendors, cream, Island and Australian oranges. Jamaican oranges and grapefruit, main crop and seed potatoes, spirits and beer, sugar, golden syrup and treacle, tea, other than China, raw leaf tobacco, New Zealand and Australian wheat, woolpacks, fruit and vegetable containers, cigarette papers, hops, hotel tariffs (unlicensed hotels and boarding houses), lubricating oils and fuel oils, imported matches, milk powders, poultry mash, tallow, tobacco and cigarettes, and wines.