Public Service Supports General Wage Claim

Press, Volume CI, Issue 29767, 9 March 1962, Page 14

Public Service Supports General Wage Claim

(N Z. Pres* Association) WELLINGTON, March 8. The Public Service Association in the Arbitration Court today fully supported the claim for a general order increasing rates of remuneration by 10.4 per cent, and considered that any other percentage the Court might decide upon should be higher than 10.4. Most of the hearing today was taken up with the crossexamination of Mr D. B. McDonald, research officer for the Federation of Labour.

Mr D. P. Long was reading his submissions on behalf of the Public Service Association when the hearing was adjourned. When Mr Long has completed his submissions tomorrow morning, he will call the Government Statistician (Mr J. V. T. Baker) to comment on bis figures. At the conclusion of Mr Baker’s evidence the advocate for the Employers’ Federation (Mr P. J. Luxford) will seek an adjournment for a fortnight to prepare his answer to the submissions made on behalf of the employees. Mr Long submitted that the case for a general wage increase *'bas been justified primarily on the grounds of increased prices and increased productivity, and also on the basis of relative movements in incomes." Retail Prices Dealing with retail prices. Mr Long drew attention to a rise of 51 points in the consumer price index between the quarter ended June 30. 1959, and the quarter ended December 31, 1961. This, he said, was equivalent to an increase in prices over the period of 4.5 per cent. Wage . rates should be adjusted to compensate in full for this increase. Referring to economic conditions, Mr Long suggested that two of the major problems facing New Zealand today, the deterioration in foreign exchange balances, and the implications for New Zealand if Britain joined the European Economic Community, were being unnecessarily exaggerated. “It is true that by December, 1961, net overseas assets

had fallen to their lowest point since February, 1958. Nevertheless, the country survived the 1958 difficulties and there is no reason for supposing that it cannot survive the current ones,” he said. “Much has been said about the threat posed to New Zealand’s farming industry if Britain joins the EEC. I submit that no-one has any really clear idea yet as to what the effects win be. “Meanwhile, New Zealand is already taking steps, with some success, to develop export markets elsewhere. The proportion of exports to countries other than the United Kingdom has shown a steady upward trend since 1948. It can be expected that this trend will accelerate as a result of modern developments.” “Prospects Bright” In spite of what the gloomy prophets said, there was nothing to indicate any slackening in New Zealand’s industrial development. Mr Long submitted that, the general economic picture was bright certainly brighter than in 1958. On productivity, Mr Long said there had been substantial increases in volume and value of production, both primary and secondary, since the time of the 1959 general order. Since the 1957-58 year the volume of farm production had risen bv 9 4 per cent., the volurfle of factory production by 20.5 per cent, and the volume of total production by 15.3 per cent. But, since June 30, 1957, prices had risen until the wage-earner should today be • receiving £1273 for every £lOO he received in 1957.