PRICE INCREASES

Waikato Times, Volume 125, Issue 20921, 28 September 1939, Page 6

PRICE INCREASES

CIGARETTES AND TOBACCO BEER AND SPIRITS UNCHANGED NO DECISION BY ASSOCIATION Tobacco and cigarette prices rose in Hamilton yesterday following the announcement by the Government of higher duties on these commodities. Retailers charged an additional Id on packets of 10 cigarettes. One-ounce tins of tobacco were increased by lid, and two ounce tins rose 3d. , There has been no increase in the* price of beer, wines and spirits, it is not known how long the position will last as no meeting has been held by the Auckland Licensed Victuallers Association to consider the matter. It was pointed out by the retailers that as the advance applied only to the duty payable and not to* the total cost of spirits, the rise ini prices would not be as great as was( expected in some quarters. The opinion was expressed that the in-, crease of 15 per cent in the duty on wines and spirits probably would mean an additional Is a bottle in the price of whisky, gin and brandy and 3d a bottle on Australian and Continental wines. GRAVE DANGER RESERVE BANK BORROWING PUBLIC WORKS EXPENDITURE The authority to borrow £10,000,000 from the Reserve Bank was not popular with the majority of Hamilton business men interviewed on "the War Budget” yesterday. They pointed out that the Government already owed the Reserve Bank a huge sum and there was a grave danger ol inflation.

Several mentioned the strong position New Zealand would have been in to help prosecute the war if the funds in London had not been squandered, while there was also criticism concerning the lack of information regarding savings on public works.

One business man was of opinion that public works should be drastically curtailed. The Government should realise that in time of war too much expenditure on public buildings and the like was not warranted and other work, apart from necessary defensive preparations, should be limited to maintenance. Of the £23,000,000 that had been passed as the public works vote this year, at least £10,000,000 should be diverted to the war account, added one business man, and men for whom work was being found should be sent to farms and other essential works to increase production. TOBACCO PRICES INCREASE JUSTIFIED (By Telegraph.—press Association) WELLINGTON, Thursday 1 The Minister of Industries and Commerce, the Hon. D. G. Sullivan, stated that immediately following the announcement of the new duties an investigation was made by the Price Investigation Tribunal with a view to ascertaining the amount of increase they would mean in the retail prices of cigarettes. It was shown that an increase of Id a packet of ten was necessary on cigarettes and 3d a 2oz. tin for tobacco. These would be permitted.