“WAGES OUT OF BALANCE”

Press, Volume LXXIV, Issue 22467, 30 July 1938, Page 16

“WAGES OUT OF BALANCE”

♦ INDUSTRIAL GROUPS COMPARED MR S. G. HOLLAND’S FEARS WELLINGTON, July 29. The activities ol the Government had resulted in seven “road closed signs being exhibited to industry in New Zealand, said Mr S. G.. Holland (National, Christchurch North), during the financial debate m the House of Representatives to-day. The whole of industry had been thrown out of ba The CG sevon signs, said Mr Holland were: (1) That legislation had reduced the incentive to investment; (2) continued uncertainty regarding Government activity; (3) the Governments avowed policy to redistribute wealth, (4) increased taxation; (5) increased costs: (6) increased Government competition; (7) the unwillingness of the Government to protect industry from the tyranny of compulsory unionism. “Wages are all cut of balance, said Mr Holland. , _ Mr J. A. Lee (Government, Grey Lynn): Are they too high? Mr Holland: I do not say that. I say they are out of balance. Industry in New Zealand could be divided into three sections, said Mr Holland. There were sheltered industries such as transport and building, protected industries such as manufacturing industries, and unprotected primary producing industries. In sheltered industries the wages rate was between £6 and £l3 a week; in protected industries the rate was about £5 a week, but in unprotected industries (the foundation of the prosperity of the whole Dominion) wages were only £3 2s 6d a week. There was obviously a need for a proper balance between industries. The result of lack of balance had been a complete upsetting of the costs of production, and it had also made it very difficult for primary producers to obtain the labour they needed. “The Government must see to it, said Mr Holland, “that in fixing wages it does not throw the wage structure entirely out of gear.”