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PART V- ORGANIZATIONS ASSOCIATED WITH THE DEPARTMENT 1. PRICE CONTROL DIVISION The following report covers the operation of price control during the past year : (a) General During the year, some further improvement occurred in the supply of many lines of both imported and locally manufactured goods, but effective demand stimulated by a general increase in wage-rates continued at a high level, and the problem of shortages remained troublesome. It would appear that a continuance of strict price control over a wide but diminishing field will be necessary so long as effective demand continues to exceed the quantities of goods available through local production and importations, with resultant continuing strong upward pressure on prices. However, the possibility of releasing goods from price control as the supply position improves to the point where competition provides adequate protection to the consumer is being constantly explored, and during the year it was found possible to de-control a number of goods and services. With continued progress in the introduction of simplified pricing procedures, this has enabled a substantial reduction in staff to be effected. Import prices, following a temporary check towards the end of 1948, generally resumed a steady upward trend which continued throughout 1949. The devaluation of sterling (and with it of New Zealand currency) in September, 1949, accelerated the upward price movement of goods originating in the dollar area and in some other countries. (b) De-control Although a number of commodities and services was released from price control up to the end of November, the change of Government resulted in the adoption of a definite policy of progressive de-control aiming at the restoration of free competitive trading conditions as soon as practicable. The progress of de-control was accordingly accelerated, and three notices, one of which covered an extensive range of goods and services, were subsequently issued. With the position under constant review, it may be anticipated that substantial progress in this direction will be made over the next year, although the speed with which de-control can be effected will be conditioned by the availability of supplies and the effectiveness of competition in preventing undue price increases. Among the more important items de-controlled during the past year were : localauthority charges except those relating to gas, electricity, or milk ; chocolates and confectionery ; fish ; ice ; jewellery and silver-plated ware of various kinds ; radioreceiving sets ; gramophones and records ; brushware ; haberdashery ; furs ; cosmetics ; various industrial goods including abrasives, industrial processing machinery, hoists, and valves ; some stationery items ; professional fees ; and commercial printing and newspaper advertising charges. (c) Development op Pricing Procedures During the year the " automatic " percentage mark-up procedure, which had already proved its value and efficiency in a number of important distributive fields, was further extended under various Price Orders to cover the sale of drugs, electrical goods, sports goods, floor coverings, office equipment, toys, stationery, musical instruments, and numerous other classes of goods. In addition, the earlier scheme covering the retail distribution of apparel and softgoods was reviewed and incorporated in a Price Order.

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