A COST OF LIVING CONTRASTBRITAIN AND N.Z.

Wanganui Chronicle, 2 November 1950, Page 5

A COST OF LIVING CONTRASTBRITAIN AND N.Z.

One Blames "Wicked” Socialists, The Other "Wicked" Tories

LONDON, Nov. 1 (Rec. 6 pm).—The rise in the cost of living in New Zealand is being used for political purposes in the United

Kingdom. It was referred to by Labour candidates in the recent by-elec-tion as an argument against the Tories. At the same time Conservative candidates have made use of New Zealand politics for their own ends. For instance, at Oxford, Mr. L. Turner, the Conservative candidate, told the electors that they could hasten the day when Britain, like New Zealand and Australia, would rid herself of Socialism and regain her old position in world affairs. Whereupon, Mr. K. Lewis, Labour candidate, listed percentages in the, rise of cost of living in New Zealand and declared: ’Prices go up under the Tories!’’ MANY THINGS RISE. Whoever, or whatever may be the reason for higher prices in the Dominion, scarcely a day passes without the price of something or other rising in Britain; and here the scene is of a Socialist Government being criticised and its Ministers saying in effect: “Yes, we are very sorry; we know prices are rising, but they would have risen still further under a Conservative Government.” To illustrate persistent increases in prices, The “Daily Express” published a calendar for October and in each square mentioned some higher figure. It began: October 1 fare—for Lon don’s tube and buses nearly all up.’ On October-2 it said tyres went up 17S per cent, for cars and 12i per cent, for bicycles. Then the calendar mentioned increases for rice, children’s raincoats, baby wool, batteries, dustbins, chocolate, costumes, roll-ons, oil, cotton, turkeys, toys, eggs, stockings, men’s suits, newsprint, shoes, krtitwear, furs, biscuits, shirts, cotton, thread, coffee, pyjamas, wallpaper, Cc.rdigans and carpets. On October 31 the calendar read: “Tooacco —half-penny to 3d on pipe tobacco from tomorrow.” This week it added that Mr. Webo, Minister of Food, had promised new sausage prices. With Socialist leaders sensitive about the steadily rising cost of living, and the Conservatives critical, a good deal is being said about the subject, both publicly and privately. One recent statement from the left caused interest during the week-end. It came from Mr. Victor Feather, Assistant Secretary of the T.U.C. He declared that any substantial drop in prices during the next three years would be a miracle. “It will be a great achievement if prices can be kept roughly at their present levels,” he said. The only way in which there lies even the remotest hope of doing that is by considerable improvement in productivity, and higher output must carry with it high wages.” Mr. Feather also said that anybody who hoped for prewar prices again, “is asking the people to chase moonbeams.' Then a statement came from the right—from Mr. Anthony Eden. In a political broadcast Mr. Eden declared that rising costs of living were the in-.

evitable consequence of high Government expenditure and devaluation. EVENTS IN KOREA. r Events in Korea and the rearmament programme, over and above the already rising cost of living, were soon going to make the problem worse. “The truth is,” Mr. Eden went on, “the Government has been spending the nation’s income up to the hilt. We are overspending as a nation and are overtaxed as a community.” Mr. Eden’s remedy was: Reduce Government spending, and increase industrial output. The latest in the verbal ring has been Mr. Harold Wilson, president of the Board of Trade. In what was described as “a frank talk to housewives,” he admitted higher prices and gave two causes: Increased cost of imported raw materials, a decent wage being paid, “for practically the first time in history,” to workers. “When wages are high,” he said,” prices, as a direct consequence, are higher.” At the same time, Mr. Wilson declaimed, the Government had fought to prevent a “catastrophic” rise in the cost of living by securing a Budget surplus and spending £400.000,000 a year on food subsidies. “Nothing,” he emphasised, “within the power of this, or any other, Government in this country, can bring down world prices overseas.” Mr. Wilson also warned against Tory promises of cutting costs by saying that if the Conservatives got into power they would try their traditional method—slashing wages. He also said it would be dishonest to hold out a hope or promise of reductions when world prices, as the result of rearmament and the scramble for materials, were rising. So the verbal battle rumbles, and can be expected to continue rumbling. An average citizen can only scratch his head when it comes to deciding whether, because prices have risen in New Zealand it is the fault of “the wicked Tories,” or whether, because they have jumped in Britain, it is the fault of “the wicked Socialists.” He is sure of one thing, at least. He is paying “wicked” prices!— From Alan Mitchcli, Special N.Z.P.A. Correspondent in London.