COST-OF-LIVING SUBSIDIES

Press, Volume XC, Issue 27489, 25 October 1954, Page 10

COST-OF-LIVING SUBSIDIES

Policy In Event Of Wage Increase

STATEMENT BY PRIME MINISTER

No changes in subsidies will be made by the Government as a result of any wage increase granted by the Court of Arbitration (wnich has not yet announced its decision on the latest claim for a general wage increase). This was said by the Prime Minister (Mr Holland), when he addressed an election meeting in Fendalton on Saturday evening. “We have made arrangements necessary to avoid any alterations,” said the Prime Minister, in reply to a question. “In view of the possibility of a further wage increase,” Mr Holland’s questioner asked, “would the Prime Minister give any assurance about steps to peg the cost of living?” Mr Holland said the Government, some years ago, had expressed its intention of holding the total cost of subsidies about £14,000,000. As the subsidy bill was now at this figure the Government could not increase subsidies, he said. Mr Holland added that if the cost of manufacturing shoes, for instance, was increased, “you can’t avoid having dearer shoes. It can’t be otherwise, unless it comes out of the public purse.”