THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service.” MONDAY, SEPTEMBER 20, 1943. STABILISATION POLICY

Hauraki Plains Gazette, Volume 52, Issue 32316, 20 September 1943, Page 4

THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service.” MONDAY, SEPTEMBER 20, 1943. STABILISATION POLICY

An extraordinary aspect of the price stabilisation policy was disclosed by Mr S. G. Holland at Dunedin. The only possible inference from a letter quoted by Mr Holland is that if the prices of “stabilised” articles are uneconomic to the vendor, increased profit may be allowed on articles the prices of which are not controlled. If that is so, where is the gain to the public from the stabilisation of prices? The letter, reported to have been written by Mr H. L. Wise, a member of the Price Tribunal, was quoted as follows: “Under coyer of your letter (from a district price committee) you enclosed an application from a firm for increased prices for denims. These lines are stabilised and the old selling price must stand. The position will have to be met in some other manner than by approval of increased selling prices, either by subsidy on the price of cloth, or by an approved extra profit, in compensation, on a certain number of non-stab-ilised lines.”

The Government has claimed, of course, that the prices of a number of essential commodities have been held at a moderate level, which is true. But the public knows that the prices of many other articles have increased very substantially. Perhaps the reason is now clear. Traders cannot be expected to sell their goods at a loss. In many of the stabilised lines the traders or producers have been protected from loss by public subsidies, such as with bread. It may be argued that the prices, of the most essential commodities have thus been kept in check, but it is perfectly clear that many goods which must be classed as essential have advanced drastically in price. The final result is that price stabilisation as a whole is not what has been claimed and that one of the show pieces of the Government policy has to some extent been camouflage. If the costs of production or importation haye risen substantially, prices must rise, producers and traders must accept less profit or a loss, or the difference must be made good by subsidy. For practical purposes, only to the extent that subsidies have been granted from the public purse have the prices of goods been kept in check.