WAGE REDUCTIONS

Auckland Star, Volume LXI, Issue 241, 11 October 1930, Page 9

WAGE REDUCTIONS

MR. RANSOM UNWILLING. EQUAL SACRIFICES WANTED. CAPITAL AND LABOUR. LOWER MORTGAGE RATES NEEDED. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. That Capital as well as Labour should make sacriliec in times of economic stress was a point made by the acting-Prime Minister, the Hon. E. A. Ransom, in the House of Representatives this morning.

Mr. Ransom twitted Reform members on their change of attitude the Budget was dealt with. The Opposition members had then described the document as a "black Budget," arid contentions had been advanced that it was not necessarv to take drastic steps to meet the position. Now, however, the Government was accused of not adopting sufficiently drastic measures. The Government believed that the costs of production should be reduced, but the only suggestion advanced by speakers in that direction during the debate was that wages should be reduced. "I don't regard an immediate reduction of wages, as far as the farmer is concerned, as the solution of his trouble, said Mr. Ransom. "I agree there should be full, free and frank co-operation between Capital and Labour, otherwise we cannot overcome the present crisis. When we call upon Labour to make some sacrifice during a time of stress, people are justified in expecting Capital to make equal sacrifices to meet a serious economic* position. If Capital were as willing to assist as Labour would be willing, I believe we would be nearer to a solution of the economic difficulties than we have been for some time. If the cost of labour is to be lessened, it is only right to expect that the cost of canital will also fall, but we see little effort on the part of those handling the finances of the world to make any sacrifices whatever."

Mortgage Rates. Mr. Ransom said he thought the countrv was justified in seeking some means whereby there could be a reduction in cariital costs to primary producers. If there were a reduction of one per cent on the rate of mortgage investment on farms, it would prove of greater assistance than a 25 per cent reduction in wages. Some mortgagees were prepared to accept such a reduction during a period of stress, and it was a pity some of the larger institutions would not do something. Mr. A. Hamilton (Reform. Wallace): Will the State . Advances Department give a lead? Mr. Ransom replied that if it had not been for the efforts of the State Advances Department, the position might have been much worse than it was. As long as he occupied the position of Minister of Finance he was prepared to lend State Advances money at the lowest possible margin at which it could be lent without loss. He recalled the attitude of the Reform party in sharply increasing the State Advances interest rate.

Mr. P. Fraser (Labour, Wellington Central): Yes, and it was done immediately after the 1925 general election.

" Sneered at by Reform." Mr. Ransom said that although the Government had sought the co-oneration of the House, it had been sneered at by the T?eform Press The Government was endeavouring to co-operate with the other parties, but- the encouragement had not been very great. Financial assistance had been given primary producers to enable them to maintain themselves on their properties. Many would have lost their holdings but for the help of the State Advances Department during the last twelve months. The Minister said, in conclusion, that the Reform party had not made a single mistake regarding its group settlement scheme of 1928, as it had not placed a single settler under it.

Mr. Coates: That's very clever

Mr. Ransom repeated that he hoped to obtain the co-operation of all parties in meeting the present difficulties.

Mr. Coates: You will get none from me at that rate.