STANDARD OF WAGES.

Auckland Star, Volume LXII, Issue 37, 13 February 1931, Page 13

STANDARD OF WAGES.

LABOUR OPPOSES REDUCTION. PROTEST TO PRIME MINISTER, DEPUTATION IN WELLINGTON. (By Telegraph.—Press Association.) WELLINGTON, Thursday. A strong protest against any proposal to reduce wages was made to-day by a deputation from the Wellington Trades and Labour Council, which waited on the Prime Minister, the Rt. Hon. G. W. Forbes. In introducing the deputation, Mr. W. Nash, M.P., said that if wages were reduced the problem would be just as great as before. The chief reason for the economic crisis was that production had outrun consumption. A reduction of wages would only further decrease consumption. Mr: J. Tucker, secretary of'the Storemen's Union, said they appreciated the task that faced the Government and were afraid that the Government might listen to the moneyed and propertied class to the detriment of the workers. If the Government gave the Arbitration Court power to reduce wages it would amount to a breach of contract with the workers and would be as bad as, if not worse than, repudiation of the national debt. ' Any reduction of wages should be on the cost of living basis. Mr. W. Maddison, of the Carpenters' and Joiners' Union, said falling wages adversely afi'ected the state of commerce . more than any other economic phenomenon. <! Tlie farmer would benefit very little from a wage reduction in the secondary industries, as the reduction would be so small that it would not be passed on. Farmers' Real Difficulty. In addition, .said Mr. Maddison, much of the farmers' products could not be exported and if wages came down the farmer would have to face a smaller home market. The farmers' real difficulty was due to heavy interest charges consequent on inflated land values. The Government should see that 1 per cent interest over t> per cent was placed in a pool for relieving farmers in difficulties. There were over £30,000,000 worth of mortgages in New Zealand and if the Government took the action suggested, land values would be deflated. The condition of the country could be met by other means than a wage reduction, but in the event of the Government deciding to reduce wages, interest and renc should be reduced also, so that the present standard of living could be maintained. They also asked that wneat prices be brought into line with world parity. The Prime Minister said a reduction of wages was undoubtedly a serious matter, but he wanted them to understand liis position. Ever since he.had held office he had been faced with the necessity of balancing the Budget. Some time ago 110 made a statement that if they continued on the way they were going they would be faced with a deficit of £3,000,000. Since then there had been a further serious drop in the prices .of produce. All Sections of Community. As a result the farmer was right up against it, and it was very probable that many people who had invested all their savings in broad acres, once a, very safe security, would not receive their interest. The manufacturers, too, were feeling the pinch. It was 110 use saying that the country could go on in the same old way. Some adjustment was absolutely essential. The whole matter was fraught with diliiculty and he was calling Parliament together to thrash it out in an endeavour to reach a solution. While he was Prime Minister lie recognised that it was his responsibility to suggest a means of overcoming the difficulty, and he intended to accept that responsibility. Ho intended to. maintain the finances of the country in a sound position and balance the Budget. Mr. Forbes said he wanted to make it plain that in reaching a decision he would not be swayed by any section of the community. . He had heard the case presented by the farmers and the employers generally, and before making any pronouncement he wanted to hear the case of the workers. He had now had that opportunity and would decide upon the course the Government would take. That course would be fair to all.