COSTS, PRICES AND WAGES

Waikato Times, Volume 127, Issue 21203, 28 August 1940, Page 4

COSTS, PRICES AND WAGES

With the objective of stabilising costs, wages and prices in New Zealand, the Government is to call a conference at an early date. The conference was suggested to the Prime Minister by a deputation from the Farmers’ Union, which for some time has been advocating an attempt to settle costs and prices on a stable basis that would be fair to all sections of the community. The need for some such arrangement becomes clear immediately it is realised that New Zealand exists on its exports and that the prices of the main classes of exports have been fixed and will probably remain about the same for the duration of the war. Obviously, if internal' costs are allowed to soar, the export industries will be in difficulty. There are those who contend that New Zealand need not and should not be dependent on overseas markets and prices. Whatever might be done in times of peace, it is certain the Dominion has no escape from the obligation not only to continue but to increase its export trade to Britain, and at prices roughly on the present levels. How else can New Zealand play its part in the war ? And how is it proposed to do this without maintaining a reasonable relationship between prices and costs of production ? Unless costs of production are kept within limits, only heavy subsidies to producers will maintain production, and there must be a limit to the payment of subsidies No easy task will confront the conference. The whole field of Government policy will have to be covered, and those who study the problems will need to approach the work with open minds. The science of economics rather than political expediency should guide the conference, and the matter of personnel is therefore important. Those who have the economic salvation of the country in view and not those who have one eye on the electorate are required for the task. It is not necessary that any section of the community should be made to suffer more than another. Equality of sacrifice may prove to be the guiding principle. Whatever the recommendation of the conference may be it is to be hoped it will be arrived at on purely economic and not political grounds. The need is too serious to of political juggling.