LIFTING OF FOOD SUBSIDIES

Press, Volume LXXXVI, Issue 26119, 23 May 1950, Page 4

LIFTING OF FOOD SUBSIDIES

RESOLUTION BY ‘ RAILWAYMEN NATION-WIDE PROTEST SUGGESTED “That a ‘work-to-the-rules’ policy be urged for all railwaymen, and that such policy be organised by the national executive of the union,’’ was the motion carried at a largelyattended meeting of the Canterbury branch of the Amalgamated Society of Railway Servants on Sunday. The meeting was called to discuss measures to record a protest against the lifting of food subsidies and increases in the cost of living. In the meantime. Canterbury railway workers, according to the branch secretary (Mr A. B. Grant), will continue the existing practices of handling trains. “While the men were angry about the increase in the cost of living and were quite in accord with the policy of working to the rules, it was consid - ered by the branch members that the national executive of the society should organise a nation-wide protest,” said Mr Grant. Freezing Workers Resume Normal work was done at the Belfast works of Thomas Borthwick and Sons (Australasia), Ltd., yesterday. The men struck on Thursday afternoon as a protest against increases in the cost of living.

CRITICISM BY MR NASH “BENEFIT TO HIGHER INCOME GROUP” “By removing the subsidies on essential food the Government hits the mass of the people and the mothers in the homes for the exclusive benefit of the people in the higher income groups,” said the Minister of Finance in the Labour Government (Mr AV. Nash) at Riccarton last evening when he criticised the Government’s financial policy. Mr Nash told his audience of some 250 persons, who packed the hall 10 minutes before the meeting was due to begin, and a small group who stood outside and heard the address from a loud-speaker, that he would have much more to say about subsidies when he spoke in the Civic Theatre on Thursday. “The larger your family, the more you pay,” he said, referring to the reduction and removal of subsidies. “To the extent that you are in the lower level of income you eat more bread than the people in the higher income class. They eat fish and oranges. Your butter bill is higher because you eat more bread and butter.” The Prime Minister (Mr Holland) had said that subsidies led to inefficiency in industry, yet there was only one manufactured commodity that was subsidised. That was clothing, and the subsidy on that had not yet been removed. “Mr Holland has talked of the ‘pernicious system of subsidies.’ ” continued Mr Nash. “In Britain to-day they have overcome to a certain extent what is known as the shortage of fats. They have plenty of margarine of good quality and if you have it long enough you won’t know whether it is butter or not. provided you don’t touch butter again. If the British Government was not following this pernicious subsidy system butter would be 2s lOd a pound there. If it was Ihe people would not buy it: they would buy margarine. Then we would lose our butter market.” With the removal of subsidies some compensation had been promised, but no one knew what it would he. If everyone was given a 4 per cent, or 5 per cent, increase in wages inflation would become worse than ever before for the cost of the increase would be greater than that of the subsidies. Again, the persons on larger incomes would benefit by a percentage increase. Price Increases “I would say that if manufacturers and retailers are charging the right price now and their wages bills go up bv 5 per cent, they will want to put 7A nor cent, on to the price,” Mr Nash added. “Then the worker will want more to buy the other articles which wiß go up. There you have worse inflation. “There has never been a Government in the history of this country that has breached its promises in such a short time and to the same extent as Mr Holland's has done,” said Mr A vote of confidence in the Labour Party was incorporated v’ith a vote of thanks passed to Mr Nash. PUBLIC SERVANTS’ MEETING CONSIDERATION OF WAGE CLAIMS A meeting of representatives of the combined State service organisations in Christchurch was held on Saturday to discuss the rise in the cost oMiving caused by the removal and reduction of subsidies. Wage claims were also discussed. The meeting was not open to the press, but the secrotary-organiser of lhe Canterbury branch of the Public Service Association (Mr A. H. Strong) said yesterday that a sub-committee had been set up to consider subsidy reductions and their effects on the wage earnings of State employees. The following organisations were represented at the meeting, said Mr Strong: the Public Service, the P st and Telegraph Deoartment. Railway Officers' institute, railway tradesmen, and engine drivers, firemen, and cleaners. PUBLIC MEETING AT DUNEDIN PROTEST AGAINST ACTION BY' GOVERNMENT (New Zealand Press Association) DUNEDIN. May 21. A resolution protesting against the action of the Government in abolishing subsidies and lifting the control of prices was carried by an open-air meeting of about 1700 men and women this afternoon. The resolution, which was moved by the secretary of the Otago Trades Council (Mr L. F. Evans), requested the Government to call Parliament together to place the position before the representatives of the people at the earliest possible moment. BREAD VENDORS’ MEETING Seventy-five per cent, of the independent bread vendors of Christchurch attended a meeting of the Christchurch Bread Vendors' Association, held on. Saturday morning to discuss how best <o meet (he loss of trade caused by the recent increased bread prices, said Mr G. N. Kinzett, convener of the meeting. It was decided to appeal to housewives to support vendors in their efforts to maintain a bread delivery service. The election of officers resulted as follows:—chairman. Mr L. Wright; secretary. Mr N. Oliver: executive’ Messrs W. A. Smith. D. J. Sheehan. P. Fenson. L. A. Wright, R. AV. Wilson, and G. R. Wall.