WAGES ON PUBLIC WORKS

Press, Volume LXXII, Issue 21973, 23 December 1936, Page 13

WAGES ON PUBLIC WORKS

TO THB EDITOR- OF THE’ PBBSS. Sir. —Recently Mr Semple, speaking to a number of workers, made two statements that invite comment. The first was that there were now some 20,000 men on public works, and that these were “earning” from 19s 7d to 35s a day. The second was that the Government was the custodian of the public purse. I will take the second first. The Government is not only the custodian of the public purse, but through its access to private purses, through its power of taxation, is also the custodian of these, private purses as well. The way in which the Government spends the public funds, will disclose whether it is an honest custodian in each case.

Now. with regard to the first statement, I think, most men will agree, that the question that crops up is this: is not every man outside the public service, who puts the same energy and skill into the work he is doing, ensiled to the same "earnings” as those on public works? That men are paid 35b a day. working on contracts, the yardage rate, and conditions laid down by the engineer in charge, does not necessarliy mean that the 35s really represents the returns the State gets for it. Actually, the real value of labour of any kind is the amount of human energy expended on a given piece of work. The only way we can decide whether the wages paid are equitable is to place the amount paid beside that paid to others outside the Government service giving the same energy and skill, and bring the two into relation with our total national income. If these rates are equitable, why did not the Government, instead of raising some wages to the 1931 level, raise all wages to the same level (that is, in proportion to energy and skill displayed) as is now paid on Government works? Under our present economic system T hazard the opinion that they are not equitable; because, if the same rate was paid to others, the drain of taxation would use up too much of our national income. Money is merely the production of the country turned into liquid form. The plea that national assets are being created does not meet the objection, as the assets created cannot return interest on the investment, and the taxpayers make up the difference. I do not grudge the workers their return, and only wish they could get more, but under the present economic system we have to comply wffh certain rules. Wages and prices must rise, and that is the only wav in which public anil private taxing rights can be met, and as these taxes increase year by year, so must wages and prices rise; otherwise we get a financial slump.—Yours. etc ” GEO. SAGE. Governor’s Bay. December 19, 1936.