“PRICE RISES INEVITABLE”

Press, Volume XCVIII, Issue 29004, 19 September 1959, Page 12

“PRICE RISES INEVITABLE”

Comment By Advocate

(New Zealand Press Association) WELLINGTON, September 18. "Employers generally will be extremely disappointed and concerned that a majority of the Court has decided to make a pew general order and that the effect of the new order will be incorporated in basic rates, when awards are renewed.” said Mr P. J. Luxford, secretary of the New Zealand Employers’ Federation, this evening. He had been asked to comment on the Arbitration Court decision. “The order itself will produce increases up to a maximum of 15s 7d a week, but in many cases the subsequent incorporation may involve increases substantially higher,” said Mr Luxford. “This will apply mainly in industries where extensive overtime is worked and where the workers are already in the higher paid categories.

“Employers cannot absorb increases of this magnitude and it is inevitable that prices will rise. The Court ha? said that the expected increase in the price index and the cost of our exports should not exceed 2 per cent. Even if this figure is correct, which tipie alone will prove, it certainly does not include any estimate of price increases which Will result from the decision to ‘incorporate.’ “Thus our money has been further devalued and there will be many who can least afford it who will be required to face higher costs without in any way benefiting from the Court’s decision,” Mr Luxford said. “The Court has discounted to an unknown extent some portion of the increase in the price index attributable to last year’s special taxation on alcoholic liquors, tobacco and motoring and expressed the view that these may be transient. On the other hand, the Court has made it clear that if these higher taxes should prove permanent, this will be taken into account when a further application is made, which it points out can be made in six months’ time. With this knowledge, the Government should not delay any longer removing these special taxes it levied last year. “The Court has rejected the overwhelming weight of evidence presented by the employers on the question of incorporation and appears to have been particularly influenced by the Government’s decision shortly before the case started, to amend the Economic Stabilisation Regulations so that they specifically empower the Court to make such a pronouncement. “The absurdity of the general order system superimposed on our regular procedures for renewing awards is emphasised by the knowledge that many workers’ unions have already filed claims for new awards seeking still further wage increases. Fixture dates have already been made for these claims to be ‘conciliated’ within the next few weeks. “Many workers who already receive wages considerably above the award minimum do not legally qualify for any increase, and employers are urged. to examine existing wage rates very carefully before October 12.