CONTENTIONS UPHELD

Press, Volume LXXIII, Issue 22005, 1 February 1937, Page 10

CONTENTIONS UPHELD

HIGHER EFFECTIVE WAGES ; MINISTER DEFENDS STATEMENT SEVERAL NEWSPAPERS ATTACKED ; [From Oua Own Refoktjsb.J WESTFORT, January 31. The attitude taken by some of the daily newspapers in the Dominion to the Government's legislation, particularly dealing with prices and wages, ■was attacked by the Minister for Industries and Commerce (the Hon. D. G. Sullivan) in a statement made at iWestport to-day. "The prominence given to the previous statement in leading articles confirms my remark regarding the attitude of several of the big daily newspapers to the Gov-ernment's-policy and their desire to discount and even distort what is apparent to everyone, especially that class of our people which has been most in need." said Mr Sullivan. One has only to talk with the peoptom their homes, in the factories, fields,, and streets with workers, facers, ma nufacturers. travel agencies.and anyone at all connected with the mdusjruu fife of the country to realise and be impressed by the great change that rSf been effected, apart altogether from the sense of freedom and general haziness that was conspicuously abseTSe this Government's election and that is now so obvious on all sides There is evidence everywhere of great iade activity, which,. I fflWtota* ally and with ample justification, is a dlrec? reflection of the new legis ation that our opponents in the political press lose no opportunity to attack and VJ, The leading articles to which I refer attempt to ridicule my statement that effective wages rates have substantially risen and that this increase cf 13.9 per cent, in New Zealand, as compared with an increase of 0.9 per cent, in England and a decrease in Australia of 1.1 per cent., has no significance. I say that effective wage rates are one of the most vital tests by which real prosperity can be measured. Admittedly it is not the only test, but all other reliable indices point in the same direction. It is frequently stated that the improvement is solely the result of improved conditions overseas and that recovery is the natural result of the upward swing in the general level of prices. That ■was bound to occur, anyhow, but it is clear that our internal recovery was not merely coincident with improved •world conditions, which even now show a very serious lag over many groups. Internal trade received a decided fillip from the increased purchasing power placed directly into the hands of <the purchasing public. A great effective demand was established by increases in wages, which reflected themselves through the whole economy of the Dominion. This sense >f freedom and this increased purchasing power, aided by confidence in the Government to achieve its purpose, has dissipated the depressing Influences of those political policies which, through misconception of the causes of industrial retrogression, brought about a pronounced disregard for the welfare of those most vitally affected. The doctrine of scarcity, which provides the darkest page in our political history, has been replaced by one of plenty. Standard of Living "The standard of life obviously depends on the vojume and quality of production. Statistical data which have been prepared for me will show the extent to which the standard of giving of the community has been uplifted, particularly by the increase in the production of most of our important industries. Practically all phases of our manifold productive operations in the Dominion reveal marked increases for the 1936 production year,* corresponding approximately to the year ended June 30. Agricultural production, when compared with that for the previous year, increased by 16.5 per cent., pastoral production by 21.9 per cent., and dairying, poultry, and bee production by no less than 25.2 per cent. The mining output increased by 5.3 per cent., the fisheries of the Dominion maintained their figure, forestry products increased by 15.4 per cent, factory products by 12.1 per cent., and building and miscellaneous production by 7.8 per cent. "Seen in the cold language of percentages these figures may not r.eveal the picture in its true light, but when it is realised that this increase in production represented an increase in value of £17,700,000 the people of the Dominion will have some idea what tremendous strides industry has made in that one year. The pastoral industry alone increased its production by nearly £6,000,000. Figures, which are as yet incomplete, show that the present production season in the dairying industry which is now reaching its zenith will see the maintenance of the level of production Prospects for pastoral production during trie current season are also exceptionally bright. New Zealand is in an exceptionally favourable position to take full advantage of the present high level of wool prices. It is anticipated that the aggregate return for the wool season will be in the neighbourhood of £15,000,000. The exceptionally favourable wool situation is also having its effect on the meat market, the prices realised for fat lambs and Bheep during the current season being at very satisfactory levels. Other figures tell the same story of improved conditions. More Br'lding "Increased building activity is indicated. For the 11 months ended m November the building permits issued for dwellings compared with the same Period increased by 14.6 per cent. In the 1935 period the value of those dwellings was £4,098,890 For the same period in 1936 it had risen to £5,163,789, an increase in value of <sb Pe "There are many other indicators of productive activity. Factory production data show some significant facts when production figures for the productive year 1935-1936 are compared with the productive year 1934-1935. For instance, the number of factory roroduction establishments increased by 5 per cent.; the number of persons engaged increased by 9.1 per cent., from 79,358 to 86,588: salaries and waees paid Increased by 12.1 per cent., from £13,244,373 to £14,844,367; the motive power used increased by 1.7 per cent.; the cost of materials used increased by 15.1 per cent.; other expenses of manufacture by 6.7 per cent. The value of production of these units, including repairs, rose from £79,324,473 to £90,014,748, an increase of 13.5 per cent. Added value increased by 10.4 per cent., the value of land, buildings, plant, and jnachinery by 0.3 per cent., and overtime worked increased by 26.8 per Cent. - . "Xhwea are; other factors ef interest

which, show these favourable, trends. There was a big increase in the amount of electric power supplied to factories by the Government. Goods carried by rail and sea in the Dominion increased substantially. Imports of essential industrial materials # point to a marked increase in production in the principal industries. Exports during the 11 months ended November 30, 1936." increased by 23 per cent, over the total, for the same Denod m the previous year, and there was a substantial increase in the value of imports. Incidentally, there is no evidence of slackening of New Zealand industries through increased inroads of imports. There is as well ample evidence pointing to material improvement in employment in the feet that all important relevant data indicate not only a great increase of national wealth and welfare, but bright prospects for the maintenance of those desirable conditions. We do not take the credit for increases in world prices, but we do say that our policy has contributed effectively to recovery through an adjusted distribution of national income, thus increasing the purchasing power of the mass of the people, and by this means .greatly stimulating every industrial and comL mercial activity in the country."