ACTION CALLED FOR.

Auckland Star, Volume LXI, Issue 228, 26 September 1930, Page 10

ACTION CALLED FOR.

HIGH COST OF PRODUCTION. PROPOSAL FOR REVIEW OF AWARDS. REDUCED XATIOXAL IXCOME. •By Telegraph.—Press Association.) WELLINGTON, Thursday. "We are here because the condition of trade in Xew Zealand calls for action in the interests of the Dominion as a. whole," said Mi\ T. 0. Bishop, of the Employers' Federation, when speaking for the large deputation representing primary and secondary industries to the acting-Prime Minister, Hon. E. A. Ransom, and the Minister of Labour, Hon. S. G. Smith, to-day. "You are fully informed upon the subject of the Dominion's finance," Mr. Bishop proceeded. "It is sufficient to call attention to the outstanding fact that the A r alue of exports from the Dominion for the year ended June 30, 1930, was less than for the year ended June 30. 1929, bv nearly £9,000,000 in spite of substantially increased production. "The prices for our produce for the season on which we have now entered are lower than at the close of last season, and the most optimistic forecast holds-out" no hope that they will improve as the season advances. There can be no doubt that our gross income from exports this year will be less than that of last year. We have not yet reached the stage when our exports are insufficient to pay our ovei*seas indebtedness in respect of loans and for our .imports, as has happened in Australia, but we have gone dangerously far in that direction. If low prices continue for two or three years, and if we do not bring our costs of production and distribution into line with our prices, we shall be in precisely the same unenviable position as the Commonwealth.

Less Money For Wages. "We are faced with one supreme duty to-'day, to bring our expenditure within our income. The farmers have increased their output from year to year for some years past by scientific means and to some extent have offset reduced prices thereby, but in spite of their efforts the position of the farmers now is such that there is a serious danger of moro land going out of production. . In secondary industries also economies have been and are being effected Jin all directions. "In spite of these very difficult circuity stances being experienced by all industries the Government has found it necessary to impose increased taxation to balance its Budget, so that private enterprise puffers a still greater effect from the shrinkage of £9,000.000 in national income. One result is that not only in primary industries but in secondary industries also there is a reduced aggregate sum out of which wages can be paid, and that means that industry generally is faced with alternatives from which there is no possible escape. These are:—(l) A reduced scale of wages; (2) a reduced number of persons employed.

Arbitration Court Powers. "We arc convinced that the results which would follow general reduction of wage rates would be the lowering of production and distribution costs* a further reduction of internal prices in sympathy with export prices, lower cost of living and increased employment... There is, however, one difficulty to be overcome, that in many industries wages fixed by Arbitration Court awards and cannot be varied except by making new awards as current ones expire. In 1921, when we experienced a similar position to the present one, this difficulty was overcome by the passage of a special amendment of the Arbitration Act, empowering the Court to revise wages under all awards. "We ask for the enactment of a similar amendment of the Arbitration Act before the end of the present session of Parliament, to provide: (1) That the Arbitration Court may from time to time amend the provisions of any award, or of all awards, by general order, in so far as these affect rates of remuneration paid to any worker; (2) that the Court may act in this respect either of its own motion or on the application of any party; (3) that before amending any award the Court shall hear evidence as to the economic conditions affecting any particular trade or industry, o.r trade and industry generally, and such other evidence as any party concerned may desire to submit, so long as the same is relevant to the matter before Court. At the moment the demand is not for a reduction of wages, but for machinery, by which a reduction may be obtained with the least possible dislocation and niaxij mum benefit, after proper investigation and the consideration of evidence."

Paying In Produce. _Mr. H. D. Ac-land, representing the New Zealand Sheepowners' Federation, said that one of the greatest problems before the country was the statutory fixation of wages. Two or three years ago the sheepowners got as much as 1/8 a pound for their wool, but now they were getting Sd. They had been getting 35/ for their lambs, but had now to be content with 10/ and less. The dairy farmer, instead, of getting 1/6 or 1/8 a pound for butter, was realising only 1/. These primary producers, when they went to pay wages, rates, taxation, and for stores did not pay in money but in produce. Thus the sheepowner had to pay today two and a half bales of wool where formerly he had-to pay one. The dairyfanner had to pay 181b of butter for services which he formerly obtained for 121b. The position was that the aggregate was not epough to pay for the services required, and if'something was not done economics would assert itself with disastrous consequences. They had to think in terms of produce, not in terms of money. Mr. C. G. Wilkin, representing the freezing companies, quoted figures comparing to-day's values of freezing works exports with the values in 1924. These showed, he said, the following declines:— Lamb, 35 to 40 per cent; mutton, 40 to 50 per cent; beef 5 per cent; fats, 35 to! 40 per cent; hides. 25 per cent; wool, 70 i per cent; pelts, 35 to 40 per <>cnt. Mr. Wilkin said that at the end of 1924, or from the begining of 1925, the basic rate of wages iii industry was 2/ an hour. Today it was 2/1, an increase of about 4 per cent.

Mr. Ransom's Reply.

The Hon. E. A. Ransom said he had listened to what had been said, but he had been unable to obtain any solution of the problem from the suggestions that had been made. The first suggestion was to depart from the present system of compulsory arbitration and adopt compulsory conciliation and optional arbitration. He was unable to see exactly what tliev meant by compulsory conciliation. To him it se'emed like a juggling of terms. Mr. Acland: It means that the parties have to come together and thrash' the matter out., i

ZVTr. Ransom said lie was "well aware of the advantages of conciliation as against arbitration. Arbitration, to his of thinking, was the last thing that an employer or employee should have to resoit to in order to settle his disputes. The difficulties through which New Zealand was passing were not nearly so great as those of other countries. It was the duty of the Government to look at the questions raised by the deputation from t'he point of view of all sections of the community. Ho was prepared to admit that an all-round reduction would be a great relief to primary producers, but it had to be remembered that wages were by no means the most serious handicap with which the producers were faced. A low \\ age-standard 'would be the last thing for primary producers to advocate. If there were a low wage-standard at Home, for instance, working people there would be unable to afford to buy New Zealand products. Mr. Ransom said representations of the deputation would receive careful con- ' sideration. He sincerely hoped that the ; outcome would be of advantage to the 1 Dominion as a whole.