PRICE CONTROL REVISION

Chronicle (Levin), 26 February 1947, Page 7

PRICE CONTROL REVISION

— Press AssociitLioii

Federation of Labour's Suggestion

By Telearavh

WELLINGTON, Feb. 25. That the whole of the personnel oi the Price Trihunal should he changed is a suggestion made by the national council of the New Zealand Federation oi Labour in the statemenfc it has released following its meeting last week to diseuss all aspects of post- war stabilisation. The statement makes suggestions for the revision oi price control, its extension to non-essential goods, stricter control of subsidised industries, and public hearings of important applications for price increases. ' ' While tlie Price Tribunal has made a reasonabiy good job of price control, we believe that with a st'rpnger personnel it could have done rnueh better, " says the statement of the federation. ' ' If the suggestions for the improvemeut of xirice control are to be carried out, the Price Tribunal 's job will become much more onerous and its i>ersonhel will have to be very mucli strengthened. In this direction we re commend tliat the whole personnel should be changed. "The utmost publicity sliould be given to axiplications for price increases and a system of public hearings of all important applications should be adopted. Notice of sucli hearings sliould be sent to the Federation of Labour in time for them to prepare submissions ou any apxilication wlien the federation so desired it. "War time methods of price control are not now adequate," states the federation. "Many non-essential articles are not controtled in price and so are mors profitable than articles under control, with the result that manufacturers are producing the profitable non-essen-tials in preference. To that extent labour and materials are not oeing used in the hest interests of our people. "All prices must he so controlled that the bias will he in favour of the production of essential commodities. ' ' The wartime ' ' cost-plus ' ' mctliod oi price fixing did not meet tlie uceds of the post-war situatibn, coulinued tlie statement. Eniplo yers wh'ose costs were lixed by that metliod had no* incenlive to increaso their etliciency. Inelliciency .. was being stabilised and labour and materials were being ■ wastcd iu substandard undertakings. "The time has coiue to abandon wartime methods and tb adopt a new 'industry ' metliod bv which prices wili be based on the costs of the averugelv efficient units in each industry. The ineflicient units will liave to improve or ga out of existence and the production of goods will be increascd because of ruore ett'ective usc of labour and materials. The ultiinate ell'ect will he to keep prices ou a lower level tlian at present. "In the future control cf prices we believe that the financial position of each industry should be taken more closely into account," continues the statement. ' * Where -balance-sheets show that handsome pr.ofits ,.are being made the industry shofiM f' be required to carry a * greatef shalp i'pf the costs and the level of prices _ should correspondingly he restriqted." Discussing subsidies, tl}e statement says that they are inseparable from any | system of price control and especialiy so iii New Zealand where many essential liues of goods are either not produced at aii or are not produced in suflicient quantity to meet ihe demand. "The subsidies are also necessarv to liold tlie prices of many New Zealand products, but wlien stabilisation was originallv adopted it was not and could not have been forcseen that subsidies 011 so large a scale would have to be resorted to. There sliould be a much stricter control of subsidies and in future tliev should be allowed only wlien an industry cannot carry tlie whole or part of its costs. The financial position should be carefully serutinised before any subsidy is allowed. "Where subsidies are allowed the Government sliould insist upon liaving a mcasure of control of tlie kind and the quantity of the goods that are tobe produced and the services that are' rendered, " says tlie statement.