CONTROL OF PRICES

Waikato Times, Volume 125, Issue 20916, 22 September 1939, Page 6

CONTROL OF PRICES

In an attempt to prevent war “profiteering” in any form and at the same time avoid injustices to all classes of the community, the Government has undertaken a task of great complexity. Some of the problems were discussed in the House of Representatives on Wednesday when, although all were agreed on the main objective, there was considerable difference of opinion on the methods that should be adopted to achieve it. It is in connection with the products of farming that the greatest difficulties with regard to price fixation will be encountered.

If the whole of the primary produce of the Dominion is to be sold to the British Government at a fixed price it will be necessary to arrange for a price that will cover further increases in costs of production which are occurring continually. But even in the detail of the scheme there are many difficulties. For instance, livestock for slaughter and sale as meat must be sold by the farmer at prices not greater than those ruling on September 1, though the demand might bring and already has brought, offers of higher prices. It is almost impossible to assess the exact value of a beast “on the hoof’* because of variations in wastage and deceptiveness in appearance. Already in most localities the demand has brought offers of prices in excess of those current at the beginning of the month, and not a little confusion has resulted.

The Minister of Supply was emphatic that increases in prices would be allowed where it was proved that costs of production had increased, or where the producer could not himself bear the added costs. In such a matter a controlling authority with even the best intentions in the world cannot dispense even-handed justice in all cases, and a great deal of forbearance will be required if price control is to be a success. It is certain, however, that if production is to be increased as desired a reasonable return must be given the producers.