Price Rises Attacked

Press, Volume CIII, Issue 30560, 1 October 1964, Page 2

Price Rises Attacked

(N.Z. Press Association) WELLINGTON, September 30. The Public Service Association, like other unions and the Federation of Labour, was becoming alarmed at the price increases since the recent general increase awarded by the Arbitration Court, said the association’s president (Mr G. H. Sorrell) in a statement today.

“Increases were announced even before the order took effect, and others have come since,” he said. “The recent general wage order increasing rates by 6 per cent was given to enable wage earners to catch up with the cost of living as it was shown to be at that time. It was meant to do no more than compensate for rises that had already occurred in prices. “It is a blatant injustice that the order should be used as an excuse for further unwarranted increases in the cost of living, and to line the pockets of those who get their incomes in the form of prices at the expense of wage and salary garners.

“The association appreciates that some price increases could, of necessity, follow the general wage increase, but one is forced to the conclusion that business is again using the general order as a ‘cover up’ for a big steal from the wage earners in their capacity as consumers.

“Evidence given to the Arbitration Court during the hearing of the wage application indicated that an increase of up to 2 per cent in the price index could result from an increase of 6 per cent applied to ruling rates—but increases are occurring for which there is no justification.

"We see again the familiar pattern, adopted recently for many commodities containing infinitesimal quantities of sugar, by which commercial ar.d retail interests are making the most of the opportunity to profiteer. “Of equal concern is the attempt being made to put across the theory that wage increases only lead to further price increases and that wage earners gain nothing from general wage orders in spite of the increases that have taken place. “It should be enough to remind wage earners, who may think there is some truth in this propaganda, that increases in timber meat

prices, now being associated with the general wage increase, were evident before the making of the order. “It is clear, from the attacks made from time to time by the employers and business interests generally upon the system of general wage orders, that they wish to see it abolished, which is excellent evidence of the worth to workers of the system. “Surely, if we are to have stability, now is the time to take some decisive step towards it immediately after a general wage increase when the workers have just got something like parity with prices. “It was clear from the evidence before the Arbitration Court that a big part of the wage increase could and should be absorbed in higher

incomes and profits being received by other groups and by higher productivity which has considerably reduced the per unit cost of production. “The situation that has developed gives every justification for the reintroduction of a firm and widely applied policy of price control, so that unjustified increases can be rejected,” said Mr Sorrell, “or for a further application for a wage increase, which the Federation of Labour has threatened—or even for both.”