Debate Turns To Cost Of Living

Wanganui Chronicle, 1 November 1950, Page 6

Debate Turns To Cost Of Living

PARLIAMENT BDGS., Last Night (PA).—Debate on Imprest Supply in the House of Representatives this afternoon and tonight, turned mainly to cost of living in New Zealand. When Mr. Moohan (Opp., Petone) announced that he was going to talk about the cost of living, there was some laughter from Government benches.

Naming several Ministers, Mr. Moohan said that whenever the cos* of living was mentioned they treated it with “ribald levity.” They giggled because they had no means of reducing the cost of living in accordance with their pledges, but for the housewife it was no laughing matter. Mr. Moohan began to read a letter written to him by a 12-year-old girl in his electorate, who referred to the “amazing statement” by Mr. Bowden in the House on October 25, that the price of meat in Wellington had not risen since the present Government tock office.

The Minister of Lands (Mr. Corbett), interjecting, asked if the letter had been dictated by the Member for Petone (Mr. Moohan)?

Mr. Moohan said when young children began writing to Members of Parliament about the cost of living it was time the Government took some steps to curb prices. “Every time we have this question raised, are we supposed to put up with the giggling and hyena-like cackling of Ministers of the Crown?” asked Mr. Moohan.

At the request of Mr. Speaker he withdrew the phrase “hyena-like.” Practically ail prices were rising to fantastic levels said Mr. Moohan, quoting numerous newspaper reports of various price increases in recent months. The cost of living was soaring and the Government did nothing. It was time that either prices were checked or the people's standard of living was restored to what it was 12 months ago. Mr. Combs (Opp., Onslow) said the general economy of New Zealanders had been completely upset. It was now impossible for a family, including two children and living on a reasonable standard, to balance the domestic budget on less than £8 a week. Before long there would be further approaches to the Arbitration Court for wage increases, far greater than were authorised this year. How could there be stable prices with wages increasing, and with the cost of living soaring up and up at the same time? Mr. Combs said it was far more In. portant today for National Partymembers to stabilise the price level, as they had promised to do, than at any time since they took office. How could a stable £ be achieved when meat, milk, bread and many other commodities had increased in price? Meat was 30 to 40 per cent, dearer now than a year ago.

It was high time an authoritative inquiry into the cost of living was made in order that wage and salary earners could receive an adequate return for their work, and one sufficient to maintain reasonable living standards for their families, said Mr. Combs. He said that profits had been allowed to run free and an officer of the Price Control Division had told The Public Accounts Committee that from 30 to 35 per cent, of goods and services were now freed from price control. The cost of living had risen so much that many men were seeking part-time employment outside their normal job, or were changing to a job which offered overtime. Thus the eight-hour day was being threatened by present economic circumstances. Families were having to reduce their purchases in quality or quantity. The majority of the people had not benefited, as had teen promised, from the easing of import control. The £ was a more imaginary’ item than 12 months ago because its purchasing power had been greatly reduced. Mr. Combs said that on latest figures compiled by the Railway s Department it was costing 49s Id to 50s a week to board single men in departmental hostels. How then could age beneficiaries live on 52s 6d? There was an urgent need for a revision of wages tc meet current living costs.

The Deputy Leader of the Opposition (Mr Nash) said it was naid io watch a." the safeguards that Labour had bluilt up to check the shocks from overseas affecting the country being throw n overboard. CUPBOARD BARE.

The Minister of Lobour (Mr Sullivan) said that when the National Government took office it found the cupboard bare. The policy pursued by the Labour Government over a period of years had eaten deep into the heart of the country and losses

were made on everything the then Government undertook. The National Government was put into office not to run away from the problems that Labour had left behind, but to face and overcome them. The Opposition s criticism of the Government came because the National Administration was doing a good job. “Of course prices for sections have Increased,” said Mr Sullivan . "The Labour Governmet passed the legislation which created a black market and the extra that is being paid today was passed ‘under the table' before.”

He said that it was known to the Government when it removed and reduced subsidies that that action would not bring political favour, but it was considered the Government had a duty to do and not allow the situation to drift further. The whole object of the Opposition discussion was to make the people think they were worse off under the National Government and to try and create distrust of the Government. Mr. Nash said the Government had inflated many prices. It was selling for £5OO sections the Labour Government bought for £3OO. Although the prices of exported goods had risen by 129 per cent, in 1949, compared with 1939, imports had risen only 92 per cent. This effectively disproved Mr. Sheat’s argument that the cost of living had been forced up by Labour's handling of produce marketing. DEFICIT OFFSET Government members claimed the country was in a mess when they took office, said Mr. Nash, but they did not explain that the £26,000,000 of alleged deficit was more than offset by the fact that £33,00,000 of Government funds lay in the Reserve Bank ready to be used at any time. “Never in our history have prices advanced so rapidfy as in the last six months,” said Mr. Nash. Global costs of items from which sales tax had been removed had actually risen by 20 per cent. The Arbitration Court had awarded maximum increases of £lB a year. Some 27s of that would go in social security tax, and the actual increases in living costs which would have to be met would be £25 to £3O. The Government had cut wages in the most cruel and subtle way. Mr. Gillespie (Govt., Hurunui): The honourable gentleman is a pastmaster at that. Mr. Nash said hundreds of thousands of people today could not afford to buy as much as they could 12 months ago. A group of sections sold in Wellington last week averaged £1035. The rise in the price of land was not yet reflected in official statistics. AIR OF PROSPERITY. Mr. Sullivan said it was a fact that in the aggregate the Court of Arbitration, in its interim wage order, awarded a total sum greater than the amount of the subsidies which were reduced or removed. He said that: there was an air of great prosperity and confidence all over the country and evidence of considerable expansion throughout industry. There were 33,500 jobs to be filled today, compared with 25.000 when Labour left office. Labour had, however, left such a backlog of evil behind it that it would take a mighty long time before the problems were overtaken. He askec whether the Opposition would replace the subsidies removed or reduced, ana take back the wage increase. Mr. Nash: Give us the chance. Mr. R. MacDonald (Opp., Ponsonbyt also attacked the Government for its failure to reduce the cost of living, and then discussed conditions in the railways service. He said that the qualifications for entry to the service today were the lowest they had ever been. If the Minister would accompany him to the Otahuhu workshops, the men there could show him how the country could be saved tousands of pounds. The Bill was passed, granting supplv for £20,930.000.