NOTES AND COMMENTS

Dominion, Volume 36, Issue 98, 20 January 1943, Page 4

NOTES AND COMMENTS

The outspoken criticism of certain aspects of departmental administration. and particularly of the Internal Marketing Department, made by Jlr. A. Cook, M.L.C., lias drawn a reply from the Minister of .Supply directed almost entirely to one phase—the cost of living. Mr. Sulliian has quoted figures, percentages and so on, in order to show that the increase in tlie cost of living since the outbreak of war has been much less in the Dominion than in other British countries. But before these contentions can lie accepted it would be necessary to know what range tlie indices of the various countries covered. It lias been stated that there is no real basis of comparison because no two indices include exactly the same items. Iu Great Britain alone there are three or four, and it is admitted that while they may all be accurate, and reliable as far as they go, no two of them are identical. The Minister stated that, compared with New Zealand’s increase of 13 per cent., the increase in retail prices in Great Britain had been 30 per cent., but the latest issue of tlie London “Economist” available gives the “index all foods weighted (July, 1914 equals 100)” as only 16 per cent, above that of September 1, 1939, and the figures on which the table is computed are taken from the Ministry of Labour Gazette. 1 lie otliei indices may show greater or lesser movements, and it all depends which table is taken for purposes of comparison. And that by no means is the only factor. A. great deal will depend upon the extent to which subsidies have been used. Jlr. Sullivan mentions the use of subsidies here for stabilizing the cost of sugar and coal, and, of course, the same method has been adopted in other respects, so that before these comparisons can be at all effective, particulars of these factors in the various countries should also be made available.

Reports of tlie Eighth Army, or some portion of it, striking west from Buerat, and mention of contact having been established with tlie enemy in tlie Beni Ulid area indicate a marked broadening of tlie Allied front for Beni Ulid is a considerable distance inland and further west than Jlisurata.

Tins development may indicate thnt General Montgomery intends to work > round the Jebcl Nefusa range which runs toward the sea near Homs, or that lie is establishing contact with other forces coming from the west. Tlie maps show that Beni Ulid is linked by desert road witli tlie main highway leading to Tripoli, joining it at a place named Farhuna ami affording n second line of approach to the capital. It would be necessary, however, if that route were taken to secure one of the passes in tlie Jebcl Nefusa, and tlie more important are guarded by powerful forts. Au advance from tliat direction would outflank any defensive positions which Itommel'.s army may have prepared near tlie coast and open the way to the port of Tripoli. On ai least one occasion General .Montgomery has used a wide flanking movement to cut the enemy’s line of retreat, and perhaps the threat of another such move may lie sufficient to cause the Axis commander uot Io wail upon the order of his going. Units of (lie Eighth Army are not in tlie neighbourhood ot Beni Ulid without good cause.

io the latest statement issued by the Reserve Bank tlie advances to the State .Marketing Department are given .'is £578,000. as against. £7,201.000 at the corresponding period last year. Such a marked movement coming at it lime when Hie output of butter and cheese anti oilier produce handled by Hie export division, is approaching its peak is surprising. There is, of course, a lag between the arrival of Hie produce in store and Hie payments made, hut when full allowance has been made for that it is evident Hint the position at Hie present lime is better than thill which obtained a year ago. And Hie factor responsilile for Hie improvement must have been shipping. 'The export figures for Hie first It) months of 1912—tlie lalesl available—showed an increase of about 550,(109 cwt. of dairy produce when compared with the first ten of the preceding year. Tins has been reflected in the banking returns, it may also lie taken Io Indicate that shipment is much closer to deliveries in store than was the cn.se last year, a welcome position during Hie period of maximum production. If this more rapid movement lias enabled Hie dairy companies to receive payments without delay then they, in Hirn, will have had less need Io seek bunk accommodation in making their payments to suppliers. The rapid decline in Hie advances made by Hie Reserve Bank Io Hie Marketing Department illustrates one of Hie ways ill which Hie splendid provision of shipping facilities tends to assist Hie I lominion.