The Waikato Times MONDAY, JULY 20, 1936. THE SESSION

Waikato Times, Volume 120, Issue 19942, 20 July 1936, Page 6

The Waikato Times MONDAY, JULY 20, 1936. THE SESSION

...—.4, The members of the Ministry have been very active during the recess. With the exception of the Minister of Finance, who, as usual, has been tied to his many important duties in Wellington, most nl." them time travelled extensively, and all will have learned how widespread i.» the interest with which the resumption of the Nksiun is being awaited. The declaration of the guaranteed price for dairy produce must be made in the neur future, because the new system of control is to UPOI'MIO ms [rum August 1. The statements regarding payments for quality have all tended to make the, declaration of the basic privc more important, and the way in which the guaranteed price and mortgage adjustments have been linked in ministerial statements has caused the price to be of immense importance to many not; directly engaged in the dairying industry.

The Ministers have stimulated public interest by their forecasts of new Bills. The latest addition to an already impressive list is that dealing with movements in prices. The Minister of Industries and Commerce has announced that a tribunal will be appointed to deal with any alleged cases of profiteering, evidently in the hope that the publicity that might be given to the cases will serve as a deterrent to some extent. This evidently is the line chosen by the authorities to prevent any undue movements in domestic prices, but the statement of the Minister of Labour with regard to eartage contracts shows that an upward movement is certain. The legislation already passed, and that yet to be introduced must affect costs and if costs increase prices must rise. That fact is recognised, but the Government is determined that any rise in prices charged to consumers must not be out of proportion to the added costs. The final basis probably will be the replacement cost of articles. It will be remembered that the Hon. D. G. Sullivan, when he spoke in Wellington some months ago, stated definitely that the Government did not intend to embark on any Wild policy of pricefixing, but it is evidently intended to give the new tribunal wide powers. There must be eventually a new price basis in the Dominion. It will come slowly for many adjustments are involved, and there is usually a lag in these movements, but sooner or later prices will stabilise at a higher level. The effects on the primary industries should be given the most careful eonsideration. Anything likely to widen the gap between returns and costs would hamper the national recovery, and it must be borne in mind that the guaranteed price is to apply only to a section of the producers. And it remains to be seen whether that price, based arbitrarily on an average over a period, will be sufficient to compensate producers for the increase in costs that they must face.

The first half of the session was of exceptional interest, but the next stage promises to be of equal importance. In the first part the Government acquired the most extensive powers, and in the second the people should be given some indication of how it intends to use them.