H.-44

12

In order to provide suitable housing-conditions on the mining-fields the Board recommended that the Coal Board should be empowered to impose a levy of 3d. per ton on all coal raised in the Dominion, to be supplemented by a duty of 3d. per ton on. all imported coal, for the purpose of providing interest and. sinking-fund charges for loans to build houses and provide suitable means of recreation for mine-workers on. recognized town-planning lines. The Board was satisfied that the value and probable, duration of tin; industry warranted this step being taken on most of the fields, and that the fund so provided would prove, sufficient for the purpose. STANDARDIZATION OF FOOTWEAR. Considerable time and attention was given to the scheme for the standardization of footwear. The Board had in view a scheme, under which, as far as possible, boots could be produced in New Zealand from New-Zealand-made leather and. retailed to the public at a minimum cost, and at prices that the Board of Trade could guarantee did not allow of any undue profits being made at any stage in the production and distribution. The suggestion for standardization was first mooted in a letter to the Right Hon. the Prime Minister, dated 23rd April, 1918, from the Central Efficiency Committee of the New Zealand Boot-manufacturers' Association, in which the committee stated that it was prepared to cooperate, in any way with the Board of Trade in the regulation of prices in the boot trade. The letter further stated that the New Zealand boot-manufacturers had full particulars of the English scheme, and. that, with the Efficiency Committee's assistance, if a similar scheme were undertaken in New Zealand, many of the mistakes made in England could be, avoided here. This communication synchronized with the Government's announced intention that the Board of Trade would consider the standardization of footwear in New Zealand with a view to a reduction of prices. Briefly put, the progress of the scheme for the period under review may be summarized as follows : The Board of Trade at various times met the Efficiency Committee and eventually asked the committee to select from among the boot-manufacturers of New Zealand some person who could act as adviser to the Board. The committee selected their then secretary, Mr. C. J. Ward, who was accordingly appointed to act as official adviser to the Board in any scheme for standardization and regulation of prices of footwear. The Efficiency Committee recommended that samples of the boots it was proposed to standardize should be, exhibited in the main centres. The drawing-up of the specifications and approval of same by the expert and the Board took- a considerable time, and on its completion Mr. Ward attended with the samples at the main centres and. explained to manufacturers as far as possible in detail the objects of the proposed scheme. When the ultimate, prices to the consumer wen 1 , under discussion it was pointed out both by the manufacturers and the retailers that it would be impossible to arrive at prices whilst leather-prices were constantly fluctuating, and as a result of a conference with tanners it was considered necessary for the Board to recommend that; the Government fix the price of hides and skins in order to ensure the successful working of the scheme. The Board accordingly recommended that the export of hides should be allowed only with the consent of the Minister of Customs, on terms and conditions set out in the Order in Council published in the appendix to this report. The Board's recommendation that the Government should fix prices for the respective grades and qualities of hides and. calf-skins at approximately the same prices as those ruling under the Imperial Government purchase was approved. It was confidently expected that as a result of this fixation of price both leather and boot prices could be stabilized. The samples of footwear prepared from the specifications of the Board's expert were submitted to manufacturers in each centre arid criticism invited, together with alternative samples. A further conference was held with the Central Efficiency Committee with a view to agreeing to a final range of samples covering men's, women's, and children's footwear, and this committee submitted in detail costings of the proposed samples under the following heads : Upper material; bottom material; labour ; findings ; overhead charges. Following this meeting the Board came to the conclusion, after receiving full reports from its expert, that the prices submitted by the Central Efficiency Committee were; unreasonable and would stultify the scheme. Accordingly the Board so reported to the Acting-President (Hon. W. D. S. Mac Donald), and advised that tenders be called for the manufacture of a range of samples to be selected by the Board ; hut on submission to the Solicitor-General for his opinion as to whether the, Board had power to take this action it was advised, that further legislation would be necessary. The Board proposes, therefore, to ask for further legislative power to enable it to carry out the scheme to which so much time and attention has been given; but in the, meantime it proposes to try a scheme whereby manufacturers who are willing to make standardized boots will receive a license from the Board to do so provided they conform, with the, terms and conditions fixed by the Board. GROCERIES CONTROL OF PRICES. The, scheme devised for restricting increases in the prices of groceries has worked satisfactorily throughout the period. As was stated, in hist, year's report, owing to the frequent and extraordinary fluctuations in prices that occurred, which were due to war conditions and were quite beyond the control of the merchants concerned, it was decided that the policy of fixing prices by Gazette notice should not be adopted, but that no increase in the prices of groceries dealt with would be made by merchants without the, consent of the Board. Of the fifty-seven commodities controlled, forty-two were altered in price some commodities, such as carbonate of soda, cornflour, and tobacco being altered four times. The fluctuations were both downward and upward, but every increase, was closely scrutinized by the Board before the increase was authorized. The increases have taken place chiefly in the price of imported articles, due to outside causes over which the merchants have no