FAIR PRICE CONTROL

Bay of Plenty Beacon, Volume 1, Issue 68, 29 September 1939, Page 4

FAIR PRICE CONTROL

All fair-minded people in New Zealand—and they are the overwhelming' majority—will support action designed to prevent war profiteering. It is contrary to the public spirit that any person, trader, producer or worker, should be allowed to make a gain out of the. nation's trials. Few will attempt to do so; but those few must be controlled. Control, however, is not a simple matter. War conditions inevitably lead to increased costs, more particularly in sea-borne goods, which are loaded with the extra charges involved by war risks. In order to maintain supplies these additional charges must be met, but under the price—control regulations at present operating they are not allowed for. The regulations fix the price for goods or services on September 1 as the price which may not be increased. This was designed only as a temporary measure, as the Minister of Industries and Commerce explained, to guard against a sudden rise in prices in the period immediately following the outbreak of war. Power is given in the regulations for the Minister to fix a different price or rate, but so far as we are aware this has not been done. Possibly the answer will be made that individual traders, manufacturers, or others may apply to the Price Tribunal for permission to raise prioes where extra costs warrant an increase. But this is liable to lead to great delay, inconvenience, and even expense unless the system of operation can be simplified. It is stated, for instance, that importers have been unable to place orders because they have not had an assurance that they would be allowed to increase their charges in proportion to the higher prices which they h£,ve had to pay. In the meantime they have: seen quotations mount steadily higher. Already in some lines there have been increases ranging up to 30 per cent. It is not thought that the importers will be compelled to bear such increases. In fact, that cannot be done; and to insist upon it would mean cutting off supplies. But traders and manufacturers naturally want ,to know where they stand. .. There is danger, if a workable system of control 'is not soon framed, of shortage which may be no less embarrassing.