COST OF LIVING REPORT

Dominion, Volume 11, Issue 18, 16 October 1917, Page 6

COST OF LIVING REPORT

SWEEPING PROPOSALS

FOOD CONTROLLER SUGGESTED

WITH PRACTICALLY UNLIMITED POWERS

HIGH RENT AND OTHER PROBLEMS

The House of Representatives received •tho report of the Cost of Living Committee last uifflit, and discussed it at length. ill'. C. E. Stathnm, chairman of tho committee, presented the report at S p.m., and read the text of it as follows l'Jio Cost of Living Committee, which was set up for tho purpose of inquiring ipto'and reporting upon matters connected with tho cost of living, lias the honour to report tliat it has taken tho sworn evidence of a largo number of persons, including members of the Board of Trade, wholesale merchants, retailers, re-, preventatives of the dairy and other industries, the Wellington Trades Rnd Lal>. our Council, and Government Departmental officers, and as tho result of its investigations, makes the following recommendations :— 1. That a Pood Controllor le forthwith appointed, who shall have a seat in Cabinet, and in whom shall be vested special plenary powers of administration to enable him to deal promptly from timo to time with problems affecting, or which may nffcct, tho cost of living, with power to control ajid regulate tho prices of food supplies and of any other necessaries of life. 2. That tho constitution, duties and powers of tho Board of Trade bo amended to meet the altered conditions consequent upon tho appointment of tlio i'ood Controller. 3. That Sub-section 2 of Section 2 of the Commercial Trusts Act, 1910, and tho schodule to the said Act (as amended by Section 12 of the Cost of Living Act,. 1915), specifying the goods to which tho Commercial Trusts Act applies, bo repealed, thiiß mating the provisions of the last-mentioned Act directed against the formation of trusts and combines apply to any goods whatsoever. |/t. That, in order to protect tho public from short weight and short measure, legislation be passed "providing that all packages or other receptacles in which goods have been put up ready for sale shall have clearly marlced thereon the net weight and net quantity of tho goods contained therein. 5. That encouragement be given, by legislation or otherwise, to the formation and carrying on of co-operativo societies for the distribution of commodities of all kinds. 6. That, where necessary in the interests of the community, the Government should undertake the purchase and wholesale and retail distribution Of goods, by sale or otherwise, and that the neccssary legislation bo passed to enable this to be done. 7. That vigorous steps bo taken to develop the fishing industry throughout tho Dominion, with a view to obtaining a cheap and plentiful supply of fish for the community. 8. That the question of oversens and local shipping, being of paramount importance, the Government should take into consideration the advisability -of establishing a Stace-controlled co-op-erative line of steamers for the carriage of the imports and exports of the Dominion, and for meeting the requirements of the inter-coastal and Islands trades. 9. That, in order to check more effectively any cases of unfair increase of rents over pre-war rates, the provisions cf part 1 of the War Legislation Amendment Act, 1916, be amended, and that in cases whore rents have been increased in contravention of tho terms of the Act, a duty shall be cast upon the Labour Department to investigate, and, whore necessary, bring such cases before tho Courts for adjustment, further, tho committee is of opinion that the curtailment of the suburban train services has been a factor in increasing' the rents ill the cities, and urges tho reinstatement of such services as wll enable suburban residents to attend to their occupations and reach their homes without serious difficulty. The committee is of opinion that tho special plenary powers to bo vested in the Food Controller should include, inter alia, the following:— (a) To effectively prevent increase in prices in auy case where such proposed increase is not justified to his satisfaction, and, whero neccssary, to lix from time to time maximum wholesale and retail prices of goods throughout New Zealand. (b) To provide for the regulation of retail prices of local products to consumers in New Zealand in tho following manner, viz.- By the purchase at ruling export prices of bucli products as may be required for local consumption, and the distributing thereof throughout tbe Dominion at such lower j prices as tho Food Controller shall think fit, the loss being met out of tho Consolidated Fund. (c) To make arrangements for tlio elimination, as far as possible, of tho present unnecessary and wasteful cost of distribution. (d) To eliminate middlemen's profits, wherever possible, by bringing the consumer m,ore nearly into contact with the producer. (e) To take the necessary steps to onsure the efficient carrying out of the "through-booking" scheme for perishable foodstuffs and of ■ the "fruit-by-post" scheme. (f) To fix and otherwise deal with rents of dwelling-houses under powers similar to th'oso under winch he may deal with prices of goods.

The Food Controller, Mr. Statham said he thought it would be acknowledged by all members that this 'question of keeping down the cost of living was one that had baffled legislators throughout the world. In every country in the world the cost of living had advanced, and remedial measures had met with complete failure or only partial success, lie did not claim that the committee had had time to deal fully with the problem, but members of the committee had worked hard to discover a solution. He expected that the report would bo severely criticised. Indeed, the members of the committee had not been -unanimous in support of the findings.' In the findings tha' principal was that of the appointing of a Food Controller. This term was used for lack of a better designation. It was suggested in the committee that the Food Controller should be in cliargo of the portfolios of Trade and Customs, in order that he might keep in touch ivith the course of trade generally, especially in regard to the commodities coming under his attention ns Food Controller. But it had been decided that his work as Food Controller would occupy him so fully that ho would have no time for other administrative work. The proposal to increase the powers of the Board of Trade had been made because the hoard was now purely an advisory body. He was sure that it was the unanimous opinion of the committee that the trouble about these cost-of-living questions in the past had been that they had been dealt ivith by too many people, and that if control could bo concentrated gond might result. He referred to sundry questions discussed by the committee, especially those relating to co-operative societies, municipal trading," the fishing industry, and high shipping freights.

that it had been pointed out to the committee that the legislation of Inst session was bi no use to women tenants in poor circumstances, and the committee suggested that the onus of taking proceedings should be cast upon tho Labour Department. It was also thought desirable that tho suburban services be in a measure restored in order to relieve congestion in the cities. This would help to give relief in rents.

The Price-fixing Panacea. As to the:powers of the Food Controller, it should not be supposed that fixing prices was tne panacea for all oviis it was populnrly supposed to be. It had been tried in Goriminy with all the force of the military autocracy behind it, and it 'had failed there. The conimiteo suggested other powers which manifestly should be exercised by the controller. The chief function ot' tho Food Controller would be to protect the people of New Zealand from exorbitant profits. On t'ho suggestion of the committee that tho Government buy staple food products of the country, and sell at lower prices to the consumers, making up the difference out of the Consolidated F'und, he said that ho supposed this recommendation would be most freely discussed. If the Government had made a bold stroke at the beginning of the war, and had taken over all the products of the country, tho present position would not havo arisen. And now to attempt to forcc prices down would mean ruin to many producers who had bought land and stock at high prices since the war began. It had been suggested that there might "be an equalisation fund provided by the producers themselves, but the objection to thi6, and a strong objection, was that it would mean taxing small producers for tho benefit of persons who were quito wealthy. On the other hand, tlio committee realised that the Consolidated Fund was not inexhaustible, and it was considered that something .would havo to ho done to replenish it. He believed that this could be done by the imposition of a comparatively small export tax.

Hpw Much Money? Sir Joseph Ward: Did the committeo assess what the loss to the Consolidated Fund would be? -All'. Statnam: The committee could not assess it because it did not know what reductions the Food Controller might make. ... . An lion, member: Make the Minister of Finance Food Controller. Mr. Statham said that tho committeo had a good precedent to guide it, because Lord lthondda had .idopted it at Home. Ha urged that the l'ood Controller should have power to deal with waste in the collection and distribution of goods. Much would depend on the man selected as l'ood Controller. Ho must be a man. of wide business experience.

An Amendment. Mr. T. K. Sidey (Dunedin South) said he would move an amendment. The original motion was "that, tho report of tho committee do bo laid upon tiie table and be printed." Ho would move to omit all the words after "that" with a view of inserting the following words: "tho •report bo referred back to the committee for further consideration of paragraph 13." Mr. Massey: A committeo divided against itself! (Mr. Sidey was a member of tho committeo.) Mr. Sidey vent on to say that the decision of the committee had been practically unanimous except in regard to clause B, on which the' members had been equally divided. Mr. J. S. Dickson: No, eight to six. Mr. Sidey said that an effort was mado to get back into committee on this clause, but this could only bo done with the unanimous consent of tlio committee. Ho was now asking the House to allow the committee to reconsider this clause. Mr. Hornsby:- What chance have wo got of legislation if wo liang it up much longer? • , Mr. Sidey: The committee could meet to-morrow morning. Mr. Leo: Wo'll bo here till Christmas, anyway! An Unlimited Liability. Mr. Sidey said, there was no restriction at all the proposal which might involve the State in an expenditure of many millions. The committeo had laid down a principle which he regarded as utterly impracticable. The Government, as a matter of fact, had abandoned the attempt to take war profits, so that the less proposed 10 be made would not be covered by revenue from that source. The House ought to accept the fact that New Zealand was under war "conditions, ' and that it was impossible to maintain normal prices in the way suggested. To reduce the price of meat by one penny per lb. would cost the Government £1,000,000. No Minister of Finance could face expenditure on such a iicalo without very heavy.increases of taxation.. No witness appearing before the committee had suggested such an unrestricted scheme as had been proposed in tho report. Equalisation Scheme. j Mr. Sidey proceeded to quote evidence from the report.'. Mr. Cuddie, head of tho Dairy Division, had said that Is. sd. per lb. would be a fair local urice for butter, and that if the export price went higher thq solo method of keeping down tho local price would bo to establish an equalisation fund,- by pooling the produce. Tho president of the National Dairy Association, Mr. Morten, had made a similar suggestion, and the evidence of the members of the Board of Trade had been entirely in favour of an equalisation fund, which would distribute equally the loss on local sal<>3 as compared with export prices. The producers would not suffer an injustice because tho State was enabling, them to reach tho markets that otherwise would be beyond their reach. He had got an impression that the Board of Trade- had not received all the sympathy it deserved from the Government. Tho board had asked more than a year ago for powers that tho committee was now recommending should .bo given to the- Food Controller. Tho committee, - added Mr. Sidey, had been dividod as to whether or not the Government ought to control the whole of the fish industry. It appeared that this industry represented comparatively small vested interests, and yet was capable of affording very great roliof to the people of the Dominion- if properly developed. Ho hoped the Government would give full consideration to the recommendation in favour of the resumption of the suburban railway services.

SIR JOSEPH WARD. THE FINANCIAL ASPECT. The Minister of Finance' (Sir Joseph Wiirtl) said ho could compliment the committee on the work it hail done in connection with a very difficult matter. He realised it would be very easy for members to say later that the Government hn<l failed to give effect to all the provisions of the report, but there were suggestions in the report that could not be adopted. They might mean the ruination of the country. lie believed it would be a Rood tiling to send the report back to the committee. Did Hid people understand cloarly what the Consolidated Fund was? It was very easy to eug-

About Rents. On tho question of x liigh rents he said

gest that the Government should pay lroni this fund the loss that was to be incurred on the salo uf products below cost, but ho was amazed at the suggestion of the committee ill this respect. The members of tlio committee ought to have known better. Mr, Veitcli: Tlio Prima Minister voted for it, Mr. Massey: Yes; but I told them it would not work. I told thein 1 could uot support it in Cabinet, Sir Joseph Ward said the Consolidated Fund was the fund into which were paid the ordinary receipts of the Btate. Customs taxes, land and income tax, and all other ordinary taxes were paid into the Consolidated Fund, from which the ordinary expenditure of the Stato Wiis defrayed. Nobody could say how much tlio committee's proposal meant, but the expenditure proposed could easily run into three or four millions. The money would havo to be found by taxation. One mau, a Food Controller, was to havo plenary poner to levy on the public revenues for the benefit of tho people who had to provide the revenues. The cost of products to the consumer was to be rcduced by moans of payments from the fund, but the fund would have to be made up by more taxation on tho products. There could be 110 benefit to anybody in such an arrangement.

Plenary Powers. Then it was suggested that a Food Controller with •plenary powers should be placed iu tile Ministry. What other Ministers would eit in the Cabinet with a colleague who had plenary and overriding powers? There would be no use for a Government under such conditions. The gentleman tvith plenary powers might just as well bo left to run the country altogether. A comparison between Britain and New Zealand in this rospcct was not fair. Britain imported two-thirds of its food. New Zealand exported more than two-thirds of its food products. Th\s British Food Controller had been appointed because the people were threatened not merely by high prices but by an actual shortage. His task of fixing a fair profit was comparatively simple, and in any case the British Food Controller did not act without the authority of the Government. Now Zealand had no reason to fear a shortage of food. The Dominion was a highly productive country, -syhich happened just now to bo dependent on the successful efforts of tho producers for the financial resources that made possible the payment of tho war bills. The Dominion contained city populations that wero not producers of foodstuffs, and the city people were troubled "by the high prices that wero necessary from the point of view of the financial soundness of tho whole country. The remedying of this difficulty by tho method the committee had suggested could nfit be undertaken on an unlimited scale. If the method were attempted there would havo to bo" a limit to the expenditure to which tho Government was to bo committed.

donee oil that point, 110 was dead against any monopoly, 110 matter what its source might lie. The members of the Government were just as anxious to reduce the cost of living as anybody else. But it was not tbo case, as some people seemed to beiieve, that the Government could reduce prices by a stroke of the pen". A Government could fix maximum prices, but; it could not force pcoplo to produce. If prices were not profitable tiie producers would not provido the goods, and then the public would be faced with a scarcity. That was a 6impio l'ugl that had to bo faced. Australia had Jried to fix prices, and nobody could say that the venture hud been a euoeess,

Necessaries of Life, What vroro the necessaries of life? It would bo iound on examination that sorno ot' tlioni came from abroad, and otiiers were produced in New Zealand, The Government of this oountry could not control the prices of tlio imported, articles in any respect. If New Zealand would not pay tho prices demanded the goods would not come. That was the case to some extent with regard to wheat. The Government could not control tho prieo ut bread because wheat had to lie imported and tho price fixed by the sellers had to be paid. Meat ami dairy produce weru produced locally in i'ull supply, and the producers wore selling at. prices that were below the rates prevailing in the world's markets. It was true that tho prices we're good and that the produco could not havo been exported without the assistance of the Mother Country. But then the whole Dominion had benefited from the money brought to tho Dominion in return for the exported produce. _ There was no man who worked harder than tho small dairy farmer, and it could not bo contended fairly that the small farmers were making huge profits. Many of the farmers, as a matter of fact, were not making more than .£l2O to JEISO a yciiV cash. There were big fanners, but tho great majority of the farmers were small men, who already wevo being taxed heavily. Ho did not believe any member o_f, the House would wish to impose additional burdens on those jwopie. We had voted for the committee's report, hut he had explained at the time that while an equalisation fund was nil right as an a.bstract theory, it could not possibly lie made just, and effective in practice. Very many of tho small farmers had bought their stock, and even their land, at war prices.

Cash Over the Counter. Ho would like to call members' attention to another point in the report. If wo were to bo successful in reducing tho cost of. living wo would have to do a great deal lucre to arrange forjhe payment for supplies ,by cash, over the counter. Ho had heard of a member of Parliament who had by paying cash over tho counter for meat: saved A' 3 in a month. Another woman he had heard of had found that by going to the shop and paying for meat and taking it awav, she could get her meat at as nearly as possible pre-war rates. He believed this could- be done with other commodities, lie had done his best to reduce the co=t of meat to tho peoplo by arranging for the sale of meat to butchers at tho export prices. A special arrangement was being made by which Ihe cost of storage w/uld not be added, to the price, but it was difficult, and he was _ not sure that it would not" require legislation. Mr. Wilford: Will you sell a single carcass of lamb?

The Shipping Shortage. Sir Josepn Ward procwued to refer to the snipping siiortage. Tuo Imperial Government had iound it necessary to commandeer shipping in a wholesaio way, ami the only people who could have controlled New Zealand produce wcro tiifi peoplo who controlled the ships, Tho Dominion would have been placed in a very different position if it nad bought all its produce and then failed to fiud an outlet. Even now the shortage ol' shipping had caused a great accumulation of produce in New Zeuland, Mr. Payne: Is not that n reason why food should bo cheaper hero? Sir Joseph Ward: "1 do not bclievo that the necessities of the war justify us m being unjust to tho man on the soil." l did not bclievo in an export lax. The Government should do nothing to check production in this country, and he did not see how an export tax could fail to do that. It was obvious that the producers could not be asked to pay the present land and income taxes, and also an export tax. The Government was largely dependent on those taxes for tho revenue that mado possible, the continuance of New Zealand's share of tho war. Tho' suggestion that the Government should establish a steamship line at tho Jiresent time could not be regarded as helping the present situation. No Government could establish a line of steamers in war time. It was not denied that importers were making profits, hut they woro entitled to reasonable profits, and could not bo expected to do business on any other basis. Their expenses admittedly ha 3 risen.

One Blot on the Report, Mr. W. A. Veitch (Wanganui) said that the Minister of Finanee had over-rated tho powers to bo delegated to the Food Controller. This question had been fully considered by tuo committee, beeauso it was recognised that it would bo futile for the committee to give to eno individual powers to deal with public moneys without reference to_ tho Cabinet. Parliament itself had not this power, and tho committee would not make a recommendation so absurd as that referred to' by Sir Joseph AVard. The proposal was that tho Controller should have."special plenary powers with regard to .administration." He was strongly in favour of the amondmont moved by tho member for Dunedin''South, but it was important that the recommendations of tho committee should not bo ridiculed. Ho believed that it was absolutely necessary that there should be a Food Controller if any good was to be done. It was urged that the producers should not ba taxed in the interests of the consumers. Put this way, the proposition was reasonable, but this was not a fair way of putting it. The real question was as to whether the profits of the producers should not be limited in order to 6ave the producers undue burdens. It was useless to deal in compromises with this matter. It had to be settled or left alone. The country was very much ill earnest about the matter. He was satisfied that the effect of the commandeering of meat by the Government in New Zea!anu had uecn tno keeping down the price of meat in New Zealand. It was very much lower than in the United Kingdom, and as there would be .a. shortage of stock in England after the war, it was reasonable to assume that there would lio great increases in tho prico of meat here. The butter levyalone had amounted to a quarter of a million, and ne would not bo in favour of a proposal which would load the Consolidated Fund with, a very high charge, higher in proportion as the producers were more prosperous. Very soon ft position would ba reached which the j country would not tolerate. He could j see now "that the recommendation of tho | committee was not logical, and ho sus- ] pected that some members of tho com- < mittee had supported it with tho idea of; killing tho report. But on tho other ' hand the policy of non-interference nnd I proved a failure, and would lead to disaster. Unless- the. Government would control wheat and flour and bread from the field to the tablo the price of bread would not be reduced as it ought to be. | The Government had dou> something in regard to wheat, but bad relied upon ' palliatives rather than on radical cures. I The Government should buy the wheat, j grind the flour, distribute the flour to i tho local bodies, and give the local, j bodies a monopoly of manufacture nnd sale and distribution of bread. Mr. Massey: How much would you givo for wheat? Jlr. Veitcli said that ho would not cavil at tho prico now being paid. ]Io was prepared to admit that wheatfarmers were not doing well, but the intermediate profits and costs were so high that tho consumer suffered.- He thought tho Government should adopt the plan of State ownership, and give up that of State competition. Ho hoped the House would send the report back to tho coriimittce in order that this ono clause should bo reconsidered, because lie thought this was tho one blot on the committce'6 report, and he hoped that after that tho report would receive tho careful consideration of the House,

THE PRIME^MINISTER. NO EXPLOITATION OR MONOPOLIES DISCOVERED. Tho Prime Minister said he had been a member of the committee, but ho had not interfered in the proceedings at an? etaae. Tho committee had been free to pursue its investigations in every direction, and lie had not heard of any exploitation or any monopolies that had boon discovered. He wanted to know it there was exploitation. He was prepared to take stops if it vnro shown that thoro had been exploitation of the public during tho present war, and he had looked for evi-

iliv.Massey: I hone we shall be ablo to do even that. He had no objection to the proposal to appoint a Food Controller, but let it be well understood that there was no magic-in the term Food Controller. In England, even with a Food Controller, and with one of the best men in England in the office, tho cost of living had increased AO per cent. In America they had a Food Controller, but the cost of living had gene up, 40 per cent. He agreed with the suggestion of the Committeo that all kinds of foodstutfs should coine under the Commerciul Trusts Act. He be-litved that co-opera-tive societies had dono good work ii), England, but for some reason some ol .them had failed in this country., In regard to the fishing industry, he was sure that but for the war something would havo been done to reduce the cost of fish. The State-controlled shipping lino idea, would not lie effective, because it would be at least five vears before a line could bo established, mid before that time tho war would be o'er and things would have returned to normal. He believed also in the proposals with regard to rent. In fact, a clause which would givo -effect to what tho Committee recommended had already been drafted. He was in favour of the report being referred back. There was a. fortnight or more of the session left, and the Committee might well give tho matter more consideration.

In Support of the Report. Mr. J. T. M. Hornsby (Wairarapa) said he would vote against tho amendment because he was opposed to the nropos-al for the establishing of a localisation Fund. He would suggest Mr. M'Donald, of "the Board of Trade, as a good man to be appointed Food Controller. His second choice would be the Hon. W. D. S. Mac Donald., It was, perhaps, truo that tho meat producers in this- country were not making undue profits, but thero was a meat ring operating in this country forcing up prices in order to capture the malket. He did- not agree with tho Finance Minister, that the Food Controller would have power to tnko airl ust the moneys in the Treasury. The committeo never had such an idea. Their idea was that the Controller should regulate prices, and that in extreme cases he should ask the Government to make good out of the Consolidated Fund any loss sustained. This was already being done m dealing with wheat, and it was a perfectly proper arrangement. He said advisedly that no earnest effort had been made to deal with the persons in this country who. were swindling the people. The Board of Trade had been a dismal failure because there w;as "a nigger in the wood-pile." There was one man on the board who had been put thero to prevent the carrying out of the ideas held by others on that board. Mr. J. M'Combs (Lyttelton) said that had been promised an opportuimy to discuss the report, but the opportunity would not be adequate if the discussion was limited to one evening. The Government did not lack power to deal with tho cost of living,' what it lacked was the will to stop exploitation. A" hundred examples of exploitation and of the failures of the Government could be quoted if illustrations were needed. The Government apparently did not want to keep down ' prices and destroy war profits. He considered! it utterly unjust that New Zealand consumers, living in a land of plenty, should be required to pay the famine prices of Europe.

No Evidence of Exploitation. Mr. C. A. Wilkinson '(Egmont) said that as a member of the committee he | felt disposed to pay a compliment to the I chairman of tho committee, who had j shown the utmost impartiality to mem- ! bers of the committee. The committee's report showed, at any rate, that there was ,_no easy way to reduce the cost of living. Ho would like to see the renort referred back, but ho believed that Clauso 1 should* also be reconsidered. Tho Controller could not. fix prices unless he had ability to pay out funds.' Tho report of the committee probably forecasted a great extension in Rtato enterprise in the production and sale of foodstuffs. No direct evidence, however, was given to tho committee, of exploitation of the public. In fact, the contrary was shown to bo the ease. He protested against tho idea that there should bo a levy made npon tho producer to creato an equalisation fund. It would perhaps bp well enough if tho producers verc left with a fair return for their goods. In the case of tho butter-levy the worst objection was that the levy was made upon cheese producers, who were not concerned in the price of butter at all. It was said that the Consolidated l-'und could not bear tho equalisation cost. How then could one section of tho community bear it? An lion, member: They are malting more money, Mr. Wilkinson said that if farmers charged a fair price for their own labour it would, be found that the cost of production was in reality higher than the price realised. Farmers were getting increased prices on account of the war, but the eost of production had also increased on account of the war. The profits of the farmer had been curtailed in one direction and another, and when the farmer in New Zealand was asked

to take loss than tho prices paid to tie Canadian farmer, and to the British fanner, it was not fair (hat ho should bo blamed* The average wage oi' the Wellington wharf labourers was higher than that obtained by any dairy farmer in the country. Ho was glad to hear tho Prime Minister eay that he would be r,o party to any sch&mc which would work injustice to the producers of the Dominion. Mr. Wilkinson insisted that (ho increased prices of foodstuffs produced in New Zealand were not the main factor isi the'increased cost of living.- Tho prices of all imported goods had advanced. He hoped that if the report went back to the committee no unfair charge would be imposed upon tho farmers.

Government Not in Earnest. Mr. A. Walker (Duncditi North) supported the amendment. Ho said that the increased prices of imported articles and the high freight charges could not be controlled by New Zealand. But mot© than half of tho goods consumed by the people were produced within New Zealand, and reductions of price would be effected there if the Government had the will. But it had been made olear that the Prime Minister and the Minister of Finance were not in favour of measures to reduco prices. The Ministers as a body were anxious to maintain high prices of foodstuffs iii order that taxation might be the more readily attained. Sir Joseph Ward: Nonsense. Mr, Walker said he held to his own view. The evidence had been placed before the House by the Ministers, ■ who had opposed every 6ort of action likely to reduce prices. Mr. P. C. Webb (Qrey) also argued that the Government had made no earnest effort to reduce prices. He thought that a ltoyal Commission ought to bo set up to investigate the working of NewZealand's coalfields. Coal was being wasted at the present time owing to reckless and extravagant methods of working. The country, moreover, was paying nearly as much to the Union Steam Ship Company for carrying coal as it paid to the miners for winning it. Mr. Wilford (Hutt) said lie' did not believe the rise in prices had been of any great benefit to the small farmers, who were paying increased prices themselves, but there was room for the work of a food controller, who should bfj given absolute powers in dealing with food prices. The Hon. W. D. S. Macdonald (Minister of Agriculture) defended the action of tho Government in connection with food prices. (Left sitting.) '■