Price control 'not removed altogether’

Press, 7 April 1979, Page 3

Price control 'not removed altogether’

PA Wellington Price controls had not been removed across the board, said the Minister of Trade and Industry (Mr Adams-Schneider) yesterday. Full price control remained on goods and services which enjoy a Government subsidy, which were provided by sole manufacturers, or which were judged to be key items in the New Zealand economy. Mr Adams-Schneider was commenting on criticism of the removal of price control by Labour’s spokesman on consumer affairs, Mr R. O. Douglas. He said the Commerce Act contained adequate powers for dealing with “mischiefs in the market place.” The Government was also prepared to review subsidies, import-licensing protection, tax incentives, or allowances .to curb unjustifiable price increases.

“Moreover, goods and services can be made subject to full price control where the circumstances warrant or the Commerce Commission could be requested to hold a

public inquiry into the matter,” said Mr Adams-Schnei-der. He was confident that existing competition and the good sense of businessmen would make it unnecessary for the Government to take this action. The New Zealand Chambers of Commerce yesterday welcomed the end of price control. Their president (Mr J. R. Greenfield) said the controls had been useless and costly. “Now the customer is to be king and he will be able to decide for himself whether or not a price is fair and decide then his spending according to his own judgment, knowing all .the time that every seller is competing for his business.

“Our advice to customers is never forget when you are spending your money it is for you to decide what price you should pay and if you think the price asked is too high you should say so.” Mr Greenfield said that the end of price control would not itself cut inflation and stabilise prices but it was a step in the right direction..