COST OF LIVING PROBLEM.

Taranaki Daily News, 17 June 1916, Page 5

COST OF LIVING PROBLEM.

NOT EASY TO SOLVE

By Telegraph.—Press Association. Wellington, Last Night. In the course ol the Budget statement Sir Joseph \\ aril said: During the year this matter lias received a great deal of attention from the (lovevnmcnt, with a view to ifreventing high prices being charged to the people for their food supplies. Every aspect of the matter was considered prior to the appointment of the Board of Trade, but difficulties o.' solution, due to the unparalleled war, presented themselves in almost every direction. The needs of the great war the Imperial fiovernmcnt to requisition a great proportion of the steamers and ships of the mercantile marine, and other countries have also made unusual demands on the ships sailing under their own flags. The tonnage remaining for general trade purposes of the British Empire have proved quite inadequate for carrying on the transport and commercial requirements of the Empire, and the oversei. dominions have suffered in consequence. The regrettable but inevitable result, was thai freights rose to an unparalleled height, and still remain so. This, with the phenomenal increase in the prices of goods in outside countries, including Great Britain, added enormously to the cost of goods imported to this country. In this respect, as far as New Zealand is concerned, the Government was nnwerlcss to immediately effect a remedy. Firstly, ships couhl not bo built, chartered, or purchased. Secondly, if tliev could have been built, chartered, or purchased, the necessities of the, war would have taken precedence of evetvthing else; in fact, the ships wouid have been rightly csmmandeered for Imperial purposes. Thirdly, the first cost of goods of nearly every description in the countries of origin could not be controlled from here.

The Government consequently directed its attention to preventing exploitation, and t'ie Board of Trade, when it was set np, was specially instructed to leave nothing undone to hel[j in 'this direction, and it lias been engaged since its constitution in making close inquiries in different poitions of the country. The reports will be made available for Parliament.

It seenu almost impossible during war-time, owing to the world-wide increases in freights, added to the general increase of the first cost of goods in the countries of origin, to hope for a general lowering of prices until the war is over. Similar difficulties present themselves regarding our own produce, which is, fortunately, in great demand. As prices are fixed by the law of supply and demand in all parts of the world it seems apparent that only the lowering of values in the out-'de w»r>rl<l can effectively bring about a reduction of prices in New Zealand. If relief l>v the remission of Customs duties would have helped, this would have teen, proposed. ' Tt will be seen, however, that practically all articles of food and materials largely in use are already free of duty.

I have had a return prepared showing articles of food at present free of duty. They are as follows: Arrowroot; farinaceous fools (n.0.e.); dried fruitscurrants. dates, .figs, prunes, raisins; fresh fruits—bananas, oranges, other hinds: mai/ena and cornflour; rice, dressed and undressed: infants' nnd invalids' farinaceous foods: macaroni and vermicelli; mustard; nuts, edible, other than almonds and walnuts; sago and tapioca, except flour' salt, refined and table; sugar, molasses, and treacle; tea, in packages containing 51b or over. The value of the articles imported under these headings duirns' lniii amounted to £'2,04(!,f>10, and if the duty at the ordinary average rate had existed for that year, including sugar at a duty of y,d ner pound, and tea at 2d per pound, the duty would have amounted to £570,070.

During the an me year, the following article*, of clothing and wearing nnparcl •vere admitted free of duty: Children's boot-, sizes 0 to 0: gum boots: buttons, tapes, waddings, pins, and needles; cotton puce-goods; line piece-goods; union, cotton and linen piece-goods; waterproof cloth; sewn,a; silks and threads. The value of these imports amounted to £1,210.757. If duty had evisted at the ordinary rat"s it would have approximated £240X00 for the year, so that with, free food imports the sum of £816,070 per annum is represented by these two classes of imports. I mention this matter in consequence of the somewhat unfair strictures levelled at the New Zealand Government in reference to the increase in the cost of food price®. It is clear that in regard to the articles I have referred to nothing further can be done at present to reduce their imported cost, as they are all free of duty It certainly cannot be denied that the prices of these commodities materially affect the masses of the people, and it, is our clear duty to do all in our power to bring about a reduction in th; cost of living. It was for the purpose of preventing exploitation that the Heard of Trade was established by the Government.