"VERY DISTURBING"

Auckland Star, Volume LXXVI, Issue 38, 14 February 1945, Page 6

"VERY DISTURBING"

COURT'S NEW POWER

THE LID OFF STABILISATION

P.A. WELLINGTON, thi: day. A statement issued to-day by the Associated Chambers of Commerce of New Zealand, says that the announcement by the Prime Minister, Mr. Fraser, of the amendment_to the stabilisation regulations to enable the Arbitration Court to adjust general disparities in wage levels, is a very disturbing one. Although the statement by the Prime Minister emphasises the inflationary dangers involved in war and the post-war period, there is no doubt whatever that the latest amendment "takes the lid off stabilisation." Previously the Arbftratlpn Court, in dealing with wage adjustments, had to have regard to the over-riding consideration of the economic stability of New Zealand. This imperative requirement is now watered down by the authority given to the Court to effect a general step-up in wage levels. Viewed from the basis of disparities between groups, it is the view of the Chambers of Commerce that it is highly dangerous to introduce such a wide departure from the basic principles of stabilisation when the war is not yet won, and the imperative reasons for the introduction of stabilisation have by no means disappeared. The Associated Chambers of Commerce are on record as being in favour of a review of the wages of the lower paid workers, particularly in the public service, but this by no means implies concurrence with such a general opening of the gates as is made possible by the latest amendment to the regulations, adds the statement. The general increase in wage levels, which might well result, must have its reflection in increased costs, and that is no help to industry, commerce or to those unfortunate people on fixed incomes.