Minister Defends Price Control Measures

Chronicle (Levin), 30 April 1948, Page 2

Minister Defends Price Control Measures

— DUNEDIN, April 29. ' Tlie Governmeut was committed by i-ts 194(i election platform to. maintain stabilisation during the term of the P'l'eseJit Parliament' but this- did riot mean i-omplete • rigidity- because,' wliilfe the principle remained iiitact, steps eould always be taken to correct anomalies. : This stateuient was made to the Federation of Eabour 'conference in Dunedin today by the Minister in charge of stabilisation, Mr. Nordineyer, ac-cording to a statenient.released from the conference.

The constant increase in the wage and price spiral left the workers worse. off than before, Mr. Nordmever said. The Governmeut did not contend that | it could maintain wages, prices -ami • costs on a constant level bnt its policy ciuibled worktu's in" New Zeaiand to obtain more of the f'rnits of industry than i n any other comttry in spite ot the re>luction in subsidies. ^rr. Nord- ! meyer' said that they- eost £1, '5, 4 00, 900 for the year ended March 31 last. Over the period of stabilisation, particularly since 1939, tliere liad beeii a constant increase in the value of money for purchasing goods, the ^Minister continued, At ilarch 31 last it was estimated that the savings of the people, less trading bank deposits, amounted to £225,000,000. "If production increases correspondingly, tliese (igures would give little eoncern, " Mr. Nordmeyer said, "but beeause we have sent overseas goods to a greater value than we have reeeived in return, we are in a state of unbalance. In 1945-40 the value of goods produced was £107,000,000 while the aggregate. private income was £320,000,000. in 1938-39 the value of goods prodneeciwas £137,000,000 and the aggregate private income £1S5,000,000. The gap between the ynlue of goods and money to purchase tliem, was therefore con siderable. The Minister explained that this was the reason why the Governmeut was vitally -concerned that whatever ! changes in detail niight be made, t.he ; principle of stabilisation niust remain. "I am not det'ending everything that the Price Tribunal has done, " Mr. Nordmeyer" concluded, "but I say with conviction that during recent months and particularly since the intr.oduetiou of the Price Control Bill, tliere has been much more rigid control of prices and proiits than in the past. This is clearly indic-ated by the violent pro--tests that the Governmeut has reeeived. My policy and that of the Governinent is to ensure more effeetive and more eftieient administration of price control.