Mr Walsh Predicts Big Increase In Living Costs

Press, Volume XCVII, Issue 28748, 20 November 1958, Page 16

Mr Walsh Predicts Big Increase In Living Costs

(New Zealand Press Association)

GISBORNE, Nov. 19.

The president of the Federation of Labour (Mr F. P. Walsh) today predicted an increase in commodity costs which would cut the standard of living of wage and salary earners by 10 per cent. Mr Walsh told the annual meeting of the North Island Waterside Workers’ Association that if present trends continued there must be increases in commodity prices. “Those foolish enough to have saved money could, in effect, find that their savings have been reduced by 10 per cent,*’ he said. The three steps leading to a difficult situation were the advances by the Reserve Bank to the Government and to the dairy industry, the policy of the Wool Board in buying wool at floor prices as was the case at the recent Christchurch sale where the board purchased 18 per cent of the amount auctioned, and advances made by the trading banks. All these factors must tend to drive commodity prices up, said Mr Walsh. The Federation of Labour was gravely concerned at inflationary

trends and unless the Arbitration Court compensated the wage and salary earner for loss of earning power due to increased prices all would inevitably have to suffer a reduction in the standard of living. Mr Walsh said grave dissatisfaction had arisen in trade union circles over the case of a person who received £2O for one week’s work and was taxed on the basis of an annual income of £lO4O. It was felt a wage-earner in this category was entitled to a refund in taxation. Such was the case in the United Kingdom and Australia. Representations made to the Government by the Federation of Labour in this important matter had not been successful.