ECONOMIC EFFECTS

Ashburton Guardian, Volume 66, Issue 277, 4 September 1946, Page 5

ECONOMIC EFFECTS

SHORTER WORKING WEEK MELBOURNE, September 3. The probable economic effects of the 40-hour week on Australia were indicated to the full Arbitration Court by Mr Stanley Lewis, counsel for the Commonwealth, and Professor L. F. Giblin, chairman of the Advisory Committee on Finance and Economic Policy. Mr Lewis said investigations indicated that with the introduction of the 40-hour week a 5 per cent, loss in production could be anticipated. That would be followed by a general price rise of 4 per cent., then by a rise of 3 1.3 per cent, in the basic wage. Contrasted with the enormous demand for houses and work to be done in supplying the demand, the reduction ot four hours in the working week was' insignificant. Professor Giblin said the adoption of Ilie 40-hour week would result in an immediate loss in total output which would be absorbed at first by the increasing civil population owing to demobilisation. No section of the community would benefit in respect of real wages and there would be a definite loss for those above the basic wage.

The Arbitration Court hearing, which began three months ago, is expected to exceed £IOO,OOO in legal and incidental costs. It is regarded as unlikely that judgment, will be announced before May. The commonwealth case, which began yesterday, will probably accupy three weeks, and the cases of Queensland and South Aus. tralia another month. The employers intend to call about 100 witnesses, and occupy about 13 weeks.