"THE BORDER OF UTOPIA"

Press, Volume LXXII, Issue 21867, 21 August 1936, Page 12

"THE BORDER OF UTOPIA"

HIGHER WAGES AND SHORTER HOURS ASSISTANCE FOR EMPLOYERS WANTED (PEE3S ASSOCIATION TELEQBAN.) WELLINGTON, August 20. The new Labour legislation as it affects the local manufacturer was referred to to-day i>y Mr W. H. P-Bar-ber, chairman of the Wellington Woollen Manufacturing Company, Ltd., at the annual meeting. Certain of the legislation enacted within recent months, he said, appeared to set the difficult problem of suddenly making the real conform to the ideal. As fairly large employers with a payroll of 733 persons it was a formidable task to raise the wages as prescribed with the shortening of hours without the ability to increase selling prices to cover additions to the cost.

By the amendment of the Factories Act, the wages of young beginners started at 50 per cent, above the former rates, with half-yearly increases reaching in three years £2 a week. It was an interesting fact that the union demands filed just before the passing of the amendments to the act named 32s 6d as acceptable for girl workers up to 3J years at the trade when they automatically went on to journey women’s rates, but Parliament raised the amount of pay at three years to £2. “The announced additions to our wages list so far approximate £23,500 a year. Apart from this known and other expected increases, consumable stores, such as soap, oil, coal, heavy chemicals, dyes, spares, and many commodities necessary to our operations, have risen or will rise in price. “The rate of income tax has been raised from 5s 10 3-5 d to 7s 6d, an increase of Is 7d in the £. Land tax has advanced three times more than the former figure paid by us. Of course, we are not called on for income tax if we do not make a profit, but it must be remembered that every selling price of the company is subject to 5 per cent. Provision for the State out of any profit accruing, as allowances for land income tax, are not deductable before the assessment of income. Prime Minister’s Promise

The only gleam in what would be an otherwise dreary outlook is the repeated promise of the Prime Minister, supported by other Cabinet Ministers, that help to the manufacturing industry is the policy of the Labour Government, and definitely that ho one need fear injury by its legislation, as an industry will not be let down. “It is clear, that if the Dominion’s industries are to function under this new legislation, competition frotn places not so restricted in either hours or wages should be controlled —as we feel sure it will be—in such a way as will commend itself to the wisdom of the Government acting in the terms of the Prime Minister’s pledge.

“The workers of the Dominion have been led to the border of Utopia, and the Government canhot well take them further nor even leave them there un-ess employers are made able to provide means to do it.” said Mr Barber. “The ability to hold the new standard of wages and hours of employment is possible only if industries are enabled to run on a competitive basis. Attempts were made but failed to induce the Arbitration Court to place the woollen and clothing industries outside the operation of the shorter week or, at least, to postpone its installation until disturbing factors could be assimilated. Definitely, that controversial and really international measure was forced on the country in too quick time With hardly any better claim for adoption than well-meant intention. However, we must accept the situation as philosophically as possible and endeavour to meet the task before us with accustomed energy and zeal.”

“IN FOR BAD YEAR”

COMPETITION PROM OVERSEAS [THE PRESS Special Service.] AUCKLAND, August 20. “The failure ’ of *the Government to provide compensatory legislation to manufacturers simultaneous with the rise in labour costs is penalising the production and sale of many classes of New Zealand goods. It is stated there are being increases in overseas orders. Manufacturers state that in consequence they are likely to experience an unsatisfactory trading year. 1 think the Prime Minister does not realise just how serious is the position,” remarked Mr E. G. Bridgens. managing director of Bridgens and Company, Ltd., footwear manufacturers. “The rise in manufacturing costs by 12i to 15 per cent, in the footwear industry without any corresponding protection from overseas competition has placed us in an exceedingly awkward position. We had beep operating behind a 20 per cent, tariff, blit the rise in operating costs means that this in effect has shrunk to 5 per cent. Already orders are going overseas.

“I know one man, for example, who last year bought £SOO worth of New Zealand-made slippers. He is indenting his supplies this year. It is very apparent from the overseas competition that is developing that manufacturers are in for a bad year. A man in the clothing trade said the higher manufacturing -cost here was definitely increasing the purchase of English cloths against New Zealand, although the imported materials would be made up in the Dominion. The New Zealand milling industry was thus placed in an awkward position. He expected that by September many classes of manufactured garments would show a wholesale rise of 12* per cent.

“We have already found that we can buy some builders’ supplies and dairy appliances cheaper :n England than we can manufacture them here," said an engineer and sunnlier of various forms of hardware. “We are studying the situation closely, and we have to close down a section of valuable manufacturing machinery.”