spiralling prices

Niue feels the spiralling prices breeze, too

Prom a Niue correspondent £fVERYONE on Niue, par ticularly low paid workers, has been noticing a marked in crease in the cost of living.

This is partly due to the recent removal of consumer subsidies in New Zealand on flour and butter, and partly due to other factors.

In late March, for example, the Niue Island Assembly doubled the “aid to revenue tax”, which all employees have to pay on all income. It also raised other taxes, such as those on overseas insurance companies, and companies and public authority taxes.

The recent removal of con sumer subsidies in New Zea land has sent the price of bread up by 50 per cent, and has increased the price of butter from 1/- to 4/- a lb.

Some Niueans have been fighting the price rise on bread by buying cabin bread—which is expensive anyway. But the bakers are still baking the same quantity of bread, so somebody must be eating it.

Some bakers are baking loaves of a smaller size and selling them at the old price.

There is also to be an increase in the price of cigaret tes due to a tax increase on them; and an increase in freight rates will mean increases in prices of almost everything ar riving on the island.

On the other hand, Niueans have had some relief from the general increase in prices through being able to buy fresh milk for the first time.

The first milk went on sale in March. It comes from a herd of cattle that were imported to run on the coconut plantations which are being established.

The milk is being sold at 6d a pint. It has become very popular with the Niueans, who no doubt find it easier to find the money for it than for a large tin of powdered milk.