COST OF LIVING

Dominion, Volume 10, Issue 3152, 2 August 1917, Page 8

COST OF LIVING

STATEMENT BY PRIME MINISTER WHAT TSE BOARD OP TEADB HAS DONE. Reference was made by the Prime Minister iu the House of liepresentatives to the work of the Board of Trade in connection with the cost of living. Mr. Massey said ho thought it a pity that some of the adverse criticism directed at the board had not been deferred until the board's report on its own operations came before Parliament. Members would have an opportunity theu to judge if the board had done its duty or rot. "I think the information contained in the report will surprise some- people, said.Mr. Massey. ' "The members of tho board have had very difficult duties to perform during their fifteen months of office. There seems to be an idea in some quarters that the board could keep down tho cost of living.by the simple process of fixing prices beyond which commodities could not be sold. -People forget that tho effect of filing prices in many instances is to reduce production, and that a shortage of essential supplies is iloi-o serious than high prices. Tho fixipg of prices has been tried all ov-ev the world, for centuries past, aud. in some cases it has been effective. But when the result has been reduced production the fixing, of prices has not given the relief anticipated. "Prices always rise in war time. Freights have rison owing to the shortage of shipping aud increased cost of running. Costs of production and-inami-facture are increased by high taxation. I admit that prices have gone up seriously in New Zealand, and many people may have felt the pinch in consequence. But the increase in the cost of living here is something in t*e neighbourhood of 20 per cent., as compared with au -increase, of 92 per cent, in the United Kingdom. The increase in Australia is much higher than in New Zealand.

"I have advised the members of ths Board of Trade- to select about twenty commodities of daily use and to investigate with tho object of ascertaining the actual caus» of tho increase, in price in each case. If they find in the course of their inquiries that any man has been making an exorbitant profit, they will report to me, and I will tako the responsibility of further action. 1 am not prepared to go the length of allowiii" the Board of Trade to fix maximum prices. That will be the duty of the Government if ■ and when it becomes necr-ssa'T. But I am nrcpared to actMr. Hindmarsh: Tell ns something about rents. .- ■ ■ Mr. Massey: The honourable gentleman will hear something about rents in a few days, because I have a report on the subject. I think,it a good suggestion that no increase in" prices should take place wilhont the reasons for the increases being Dlaced before the Board of Trade and its approval obtained. I am prepared to go as far as that. 'I'lio Ho". W. I). K. Mr-cDonaW f.""l that the Board of Trade bad made inquiry whenever there was a suggestion of exploitation'in connection with the nriccs of- foodstuffs. -If the board, after investigation, recommended that action should 1« taken, the Government,, took steps in every case.