STABILISATION PLAN

Nelson Evening Mail, Volume 77, 16 October 1942, Page 5

STABILISATION PLAN

COST. TRICES AND WAGES i: RATE OF PROGRESS CRITICISED Wellington, This Day. Criticism of the Government's rate . of progress in the stabilisation of costs, prices and wages was made by the president of the Wellington Manufacj turers* Association. Mr C. N. Cathie. • in his address to the annual meeting i of the association. ! The Economic Stabilisation Conference of September. 1940. he said, was I held to survey the general economic composition of the country under war i conditions, in order to consider the posi sibility of stabilising costs, prices and ' wages, and to discuss expanding production so that the strain of war exI penditure could be successfully borne j and the standard of living maintained as far as possible. The conference later made recoinI mendalions to the Government dcj signed “to stabilise prices, wages and j costs so that the cost of the war is not I thrown unfairly on one group to the ; benefit ot' another, and to increase all | kinds of production and the efficients lof every type of service, which will ! nelp. however indirectly, the national j drive.” In July, 1941. the Government an nounced certain price control regulations and added two associate members to the Price Tribunal, thus extending the effectiveness of the tribunal. On 23rd August. 1941. the prices of 38 articles were stabilised. In September, 1941, the Government an j nounced the necessity for continuous I study and investigation by competent | persons and set up a small committee to advise the Government on stabilisaI lion of prices and incomes "This committee has met. but does j not appear to have made any substantial progress,” said Mr Cathie. "In j this there has resulted some unfairi ness, the outcome of a task unfinished. Some prices have been stabilised, buf : 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.”