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COST OF LIVING.

MR. MASSEY AND THE P AND T MEN. THE ONLY WAY TO AVOID DEPRESSION. Replying to the deputation from the lost and Telegraph Department in Wellington on Tuesday, the Prime Minister remarked that people sometimes said: "Why don't the Government keep the cost of living down?" There was no power on earth that could keep down the cost of living after a great war such as had been experienced. All that could be done was to prevent people from making unreasonable profits, and the Government had taken steps to prevent this. He referred to the setting up of the profiteering committees in the centres, and to the great work of the Hoard of Trade. A great deal had been done, and the results of the Government's work had been very good indeed. Larger profits would have been charged but for the action taken by the Government. He was aware that people with limited inepmes had had difficulty in making ends meet, and that this was especially so in the case of those who had not homes of their own, and were required to pay rents such as were current in Wellington. The value of the efforts of the Government to keep down the cost of living was proved by the fact that, great as the cost of living increase had been in New Zealand, it had been less than in any other country In the world. He knew he was correct in making this statement. In Prance the cost of living had increased by probably four times as much a3 in New Zealand, and in England probably three times. In Canada, a country similarly circumstanced to New Zealand, the cost of living had increased much more than in- this country. Australia was the only other country which had figures comparable with ours, and Australia had had this advantage over New Zealand, that she had been able to grow her own breadstuffs, whereas we had had to import a great deal of our wheat. But as regards sugar, a commodity used in "very household, New Zealand had had fight through the war period the cheapest sugar in the world. . The prices of some commodities might increase in future, but he thought that in the average the peak in high cost of living had beun reached- But so far as sugar was concerned the day of cheap sugar had passed, although he believed that even with the increase that would have to bo added here New Zealand would still Save the cheapest sugar in the world. He did not believe that we should ever pet back to the range of price* before the war, but he believed that in the next few yeays there would be a decline, probably a decline in the next twelve or eighteen months. He wished to say, however, that a drop in prices would cut both ways, because this country lived by its exports, and if prices of ex« ported commodities fell the whole population would be affected. The effort of the Government through the war period had been to keep the country prosperous, to increase production, and to market the products of-the country to the best advantage. If in the future this country was to avoid depressipn there' must be less extravagance and jpore industry than there had been in recent months. There was no other Way out. Our population had been particularly industrious itig the war period, but this industry must be continued if we are to avoid depression in the years to come. Every individual had a duty just as much as the Government had a duty. We could not get away from the fact that we had in find seven million-, additional annually to meet the cost of the war—fivo millions to meet charges for interest and sinking fund, and two millions to pay the annual pensions bill- It was an enormous burden, and if it was to be carried Successfully, and without hardship to the people, then every citizen must do his duty. "We cannot go on as we are doing without arranging for additional revenue from the revenueproducing Departments of the State," said Mr. Massev. "I am satisfied of that. I had hoped that it might be ,'.\'i.i!od, but I see now that it is impossible. It is only right that we should do anything we can to pay you salaries taking into account the increase in the cost of living. I lay that down as a principle on which we have stood up til! the present, although, as I have said, it is not generally acknowledged. I. am afraid we shall have to arrange for more revenue from the Postal Department, and more, revenue from the Railway Department, and more from every other revenue-producing' Department. It in not fair that all these increases should be charged to the. Consolidated Fund. All this it will he the duty of the Government to arrange later."—Dominion.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19200510.2.40

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 10 May 1920, Page 5

Word count
Tapeke kupu
826

COST OF LIVING. Taranaki Daily News, 10 May 1920, Page 5

COST OF LIVING. Taranaki Daily News, 10 May 1920, Page 5

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