ORGY OF SPENDING.

Auckland Star, Volume LXVI, Issue 223, 20 September 1935, Page 9

ORGY OF SPENDING.

EMPLOYERS' CONCERN

DISQUIETING FEATURES.

DIFFICULTY OF FIXING WAGES

While referring to a partial revival in industry and a more encouraging outlook generally, Mr. J. S. Dawes, in his presidential address to the annual meeting of the Auckland Provincial Employers' Association yesterday, said that there were, however, disquieting features. I he unemployment problem is serious," he said, "as is the oppressive burden of taxation, while there is and can be no guarantee as to the market value of our products.

"The most disquieting feature is perhaps the irresponsible attitude, not only of a section of the general public, but of some of those who should be leaders of thought, to the problems with which wo are yet faced. Many are advocating an orgy of expenditure irrespective of the wealth-producing limits of the various industries—primary or secondary—and are instilling the belief that debt can bo incurred with impunity and paid off by some manipulation of currency, or pledging the national credit. Naturally if any such policy was adopted the position of New Zealand would very shortly be like that of New South Wales under the Lang regime, and indeed mjuch worse, as this country is a self-contained Dominion and has no Commonwealth Government to act as a brake on irresponsible State legislation."

Criticising the theory of "over production," Mr. Dawes said that on the assumption that there was over production we were told in all seriousness that the way to overcome this was to reduce working hours and employ more labour at higher wages. As a matter of fact the real trouble was not over production, but the inability to produce at a low enough price to command a market. Therefore, to reduce hours of labour and increase costs of production merely accentuated the trouble by further curtailing the market, as it was useless to produce at a price which was beyond the purchasing power of the consumer.

Mr. Dawe3 said that the primary duty of the association was to ensure the standard of minimum wages in each industry which, while being as high as practicable, would not endanger the existence of such industry. Sucli wage must of necessity be based on the sales value of the commodities produced by the industry. In only one case at present was it, he believed, directly so based— in an agreement between the woolgrowers and the shearers. In most industries it would be impracticable, but the basic principle remained the same and an economic wage must be proportioned to the market value of the product of labour.

"In our endeavours to fix this economic standard we have been accused of always opposing the demands of labour," he said. "That, however, is inevitable, for the reaaon that the employer alone can assess the earning power of labour; also that demands of organised labour are always made as high as possible with a view to 'bargaining.' It is a difficult and often a thankless task to arrive at a fair and just standard. The difficulty is accentuated by the fact that the C>ovcrnment land local body workers are not employed under the exacting conditions governing ! competitive industry, and therefore their I wages can be fixed at a higher level."