COSTS, PRICES AND WAGES

Dominion, Volume 36, Issue 18, 16 October 1942, Page 4

COSTS, PRICES AND WAGES

Stabilization Plan I Criticism of the Government’s rate of progress in the stabilization of costs, prices and wages was made by the president of the Wellington Manufacturers’ Association, Mr. C. N. Cathie, in his address to the annual meeting of the association. The Economic Stabilization Conference of September, 1940, he said, was held to survey the general economic composition of the country under war conditions, in order to consider the possibility of stabilizing costs, prices and wages, and to discuss expanding production so that, the strain of war expenditure could be successfully borne and the standard of living maintained as far as possible. _ The conference later made recommendations to the Government designed “to stabilize prices, wages and costs so that the cost of the war is not thrown unfairly on one group to the benefit of another, and to increase all kinds of production and the efficiency of every type of service which will help, however indirectly, the national drive.” In July, 1194-1, the Government announced certain price control regulations and added two associate members to the Price Tribunal, thus extending the effectiveness of the tribunal. On August 23, 1941, the prices of 38 articles were stabilized. In September, 1941, the Government announced the necessity for continuous study and investigation by competent persons and set up a small committee to advise the Government on stabilization of prices and incomes. “This committee has met, but does not appear to have made any substantial progress,” said Mr. Cathie. “In this there has resulted some unfairness, the outcome of a task unfinished. Some prices have been stabilized, but wages and other charges and costs have not. “The apparent inability of the Government to implement the full report, and their own delay in dealing with recommendations, has intensified, the problem now before them which is to adopt a complete policy as envisaged by their initial instruction to the conference called in September, 1940.”