“N.Z.ers Living Beyond Means”

Press, Volume CI, Issue 29909, 24 August 1962, Page 5

“N.Z.ers Living Beyond Means”

DUNEDIN, Aug. 23. New Zealanders were living beyond their present means. the Minister of Labour (Mr Shand) said in Dunedin last night. In his opinion, the wage level of the country was higher than it should be. Mr Shand, speaking at the annual meeting of the Dunedin Chamber of Commerce, said there was material evidence that the country was living beyond its means. It included:— Our slow rate of economic growth over a considerable number of years. Our chronic inability to earn sufficient overseas exchange to trade freely with the outside world.

“It seems to me that the wage level is too high, at present in any case. There is evidence of the need for a higher rate of investment Inadequate investment combined with a shortage of money for investment would seem to indicate a need to redistribute income in favour of the investing sector," Mr Shand said. "Has this situation resulted from faulty distribution of our national income,” he asked, “or should we attribute it to a faulty taxation system?

“I am somewhat shocked at our present taxation system.” Mr Shand said.

Describing the arbitration system as the most elaborate in the world, Mr Shand said:

"Much of the argument before the Arbitration Court in hearings for a general wage order has little more relevance to the real problem than the flowers of spring.” However, IV had been

(New Zealand Press Association)

claimed, with some justification, that over the years relatively little time had been lost from industrial disputes. “By contrast, it is claimed by many people that the price we have paid for peace has been an excessive degree of feather-bedding, the acceptance of too low a standard of labour output, and too many restrictive practices causing unproductive time,” Mr Shand said. To the credit of the system, New Zealand had achieved something that noone else had ever attempted —"we have maintained a considerable degree of wage stability in conditions of full employment (pr 20 years.”

. There had certainly been draw-backs “but all in all the price of full employment has been less than anyone would have dared .to hope.”