“PROSPEROUS ERA”

Taranaki Central Press, Volume IV, Issue 423, 3 May 1937, Page 4

“PROSPEROUS ERA”

GOVERNMENT’S POLICY Review by Hon. D. G. Sullivan Wellington, May 2. “It should be clear that the in- | cr'ase in retail prices, which iE shown to be largely due 'to factors outside the control of the Government, forms but a very minor set-off against the b nefits conferred on the community by the Government’s, legislative programme,” sayt a sMemeut on the 'trend of retail prices in New Z aland issued by the Minister of Industries and Commerce, Hon. D. G. Sullivan. “Spending power, savings l and business activity generally are reaching i high levels and it is clear that Zealand is enjoying an era of prosperity. “The movement of retail prices in New Zealand for some time past been upwards, but New Zealand is not alone in 'this respect,” says the statement. “Upward movements in prices are being recorded in overseas countries practically without exception. It is not surprising to find statements in the Press commenting on. the rising tendency of prices. Much of this is ill-informed land comment on price movements is frequently couched in such terms as to leave an impression on the minds of readers that the Government’s 1 legislative programme has been the sole, or at least dominating, influence in contributing to the increased cost of living. “For such increases in retail prices ns may be directly attribu ed to th< j Government’s 1 legislative programme of social amelioration it makes no apology, but there is obviously a need for a cl. a-rer unders'anding both as to the extent of recent retail movements and «as to the causes of movements 1 . Increased Food Costs. "A factor con-tribu‘inc: to increased cost of food is the increase in the overseas prices of imported food commodities. Obviously the Government has no control over the overseas pric s of these commodities, but undue increases in these prices or in the retail prices of New Zealand-produced commodities are check d by the operation of (he Prevention of Profiteering Act. “Housing costs rerk second only to food in he budget of exp°nditure of th average household. The Government Statis’ician’s Dominion index number of the average level of Tents shows an increase of 3.9 per (Cent, over the latest available 12-monthly period. It will be admitted that this is a moderate increase when the facts ere taken into consideration. House buiMing virtually ceased for a prolonged period during the depression years. The recent increase in employment and in wage rrtes has enabled many p ople who were formerly forced to share houses to a flor 1 separate homes. There were 13,740 marriages last year. “Considering those factors, it cannot be doubted that but lor the Government’s timely action in passing the ' Fair Rents Act a marked increase in rents would have tak. n place. Furthermore, the Fair Rents Act forms a check not only on rentals of houses in occupancy, but also on reletting values.”