WAGE CLAIM P.S.A. Claims Economy Healthy And Expanding

Press, Volume CIII, Issue 30481, 1 July 1964, Page 12

WAGE CLAIM P.S.A. Claims Economy Healthy And Expanding

(Xeu> Seakind Press Association)

WELLINGTON, June 30.

The Public Service Association today gave support to the Federation of Labour’s application for a general wage rise. The association’s secretary (Mr D. P. Long) told the Arbitration Court that the accepted indexes of economic wellbeing indicated a healthy and expanding economy.

He called for a General Wage Order which would demonstrate to wage and salary earners that they had a stake in New Zealand’s prosperity. • The Federation of Labour,. in the name of the - Carpenters’ Union, is applying for an 18.6 per cent rise in all minimum wage rates.

M? Long said his association considered that, to enable rates prescribed in awards and industrial agreements to reflect adequately changes in prices and increases in productivity, an increase approximating the aggregate amount sought was warranted and necessaryNational production; which had mounted steadily for many years,. now . stood at 135 per cent of what it was in the year 1954r55, Mr Long said. Productivity f-or the year 1961-62 stood at 115 per cent of the 1954-55 figure. Exports had risen to unprecedented heights, both in volume and value.

Terms of trade, on which so much emphasis was placed by the opposing parties in the 1962 general wage hearing, had moved during the intervening period from a level equivalent almost to an all-time low for recent years to a levpl at March 31 which equalled an all-time ’high over the similar period. SECURE

The London price* for butter had mounted steadily since the time of the last order, wool prices had soared and prices for "meat had risen, Mr Long said. Markets for pripiary products were secure and- expanding. The internal economy had prospered. The volume of factory production had continued to increase, the retail trade had prospered and market prices' for company shares• had ’ never been higher.

Mr Long submitted that a substantikl increase in minimum fates was well within the capacity of .the economy at the present time. . It .was clear that in the past this was * a ’factor' to which the court had given weight—in his opinion ■ too much weight. There' were at’ present no undue inflationary pressures at work in the economy. Consumer prices had remained remarkably stable, with the greater part of the movement being due to “outside” factors.

SUGAR, RENTS In the food group there was the sugar increase and in the housing group, the gradual relaxation, in accordance with Government policy, of the Tenancy Act was no

no doubt a significant factor.

Mr Long said it would be idle to argue that an increaise of the nature sought would not have some effect on the price index and lead to some inflationary pressure; but at the present time the economy was in good condition to withstand' any such pressure. Earlier, the Government Statistician (Mr J. V. T. Raker) was questioned on statistics which had been placed before the Court. Mr Long will' finish making his submissions tomorrow. After these, the; Court will adjourn, probably for two weeks, to give Mr P. J. Luxford, secretary of the Employers’ Federation, time to prepare his reply to the application.