MORE SUBSIDIES TO END

Chronicle (Levin), 9 August 1947, Page 5

MORE SUBSIDIES TO END

■Bres& Assoeiation

linister SpeafeOf Rise ln Some Prices

By Telegraph-

WELLINGTON, August 8. During the current tinancial year subsidies will be withdrawn or reduced frq.ni fresh fi'uits,. meat and bacon, tea and sugar, imported raw ieaU tobacco, sea and rau fares and freight, said the Minis.ter of Finance, Mr. Nash, tonight. The Minister said one of the proposals under consideratiou by the Governnient in connection with the financial statement whieh will shortly be presented to Parliament,- is a rearrangement oi subsidies paid in connection with primary production and consumer goods. This rearrangement will. during the year, affeet the prices of certain commodities and the wartime prices index. in certain

cases the alteration in prices w.ill not take place t'or some months as it is proposed to make the neecssary adjustment when convenient. This announcement is made to ensure that any effect the arrange ment may have on living costs will, prior to any change in prices being made, be taken into account by the Arbitration Court when making its pronouncement in con nection with the case now under coiisideratioii. The Arbitration Court has been hearing submissions and evidencc from the Federatiqn of Imbour, Farmers Federation* and" Employers Federation regarding the adjustment of wage i-ate's and the Governnient was oi' the opinion that any effect on

prices resulting from its Budget policy, should be considered liy the Arbitration Court before making its pronouneement. The Arbitration Court and interested organisations were being notified of the Government's policy and the Arbitration Court might des^re to give the parties concenied the opportunity of restating their case in accord xvith the new conditions. Mr. Nash said that, as in the past, prices would not be altered except with the approval of Ihe Price Tribunal or other recognised authority. The changes would not be effective until the necessary orders had been issued. In eonsidering Ahe aetual adjustments to be made, the Covernment was concenied to safegiuird as far as possible important basic commodities and had therefore deeided that the prices of bread, '(lour, milk, eggs, bntter and coai would not be affected by the present deeision. After the pronouncement of the Arbitration Court individual price adjustments would come into opei'ation on dates to be dete;--niined, whieh would be affected by administrative and seasonal i'actors. In the meantime sulisulies would continue to be paid as at present. Farm subsidies, with minor exceptions, would be cancelled from agreed dates and compensatory adjustments would be made in the price paid for the products con c.erned. Changes in the farm stabilisation procedure, said Mr Nash, had been discussed with represenlatives of the major xirimary produeers' organisations with whorn the final details would be arranged. The decisions now made, said Mr. Nash,' will not interfere with the operation of the stabilisatiqn and price fixing pol.cy and prices on consumer goods and services will remain subject to control. Adjustments will be made only after the approval of the Minister in charge of stabilisation, in accord with the practice followed since December 15, 1942. Any ad justment of social security benefits or war pensions whieh may be i necessary. on account of changed conditions will be annoimoed in the Budget," said Mr. Nash.