Cost of Living.

Hokitika Guardian, 13 January 1922, Page 4

Cost of Living.

experience of DEPARTMENT OF INDUSTRIES. WELLINGTON, January 11. Dealing with the cost of living, the report of the Department of Industries and Commerce says that it lias been widely overlooked that profiteering was only one of the minor conditions producing the high price level that has prevailed for the past few years. Many critics were obviously unaware of the complexity of the issues involved, and tended to overlook the fact that the activities of the Department had to be conducted strictly in accordance with statutory provisions relating thereto. Moreover; in practice the detection and prevention of profiteering ha s proved to be a most difficult task. The majority of complaints did not disclose profiteering. In many instances the price tvas high, but this i state of affairs was frequently due to j conditions beyond the vendor’s control, j Often it appeared that high prices weretjj due partly to the inefficiency of thef distributing system rather than to the , rapacity of individual traders, as in ; many instances it was clearly establish- 1 ed that, a good deal of unnecessary handling and dealing by middlemen did occur in connexion with many important commodities, with the result that the final prices were considerably inflated, while none of the dealers were actually guilty of profiteering. The complaints submitted to the Department and its tribunals are, of course only a sample, and may not be fully representative of prevailing conditions. In regard to profiteering, it is stated that the prosecutions instituted, have had a restraining effect on the prices of locally-made goods. In regard to imported goods, however, the replacement value introduces serious complications but now the market is inclined to be dull, and the replacement value practice is working directly in the public interest.