“No Lead By Council To Solving Labour Shortages”

Press, Volume CVI, Issue 31215, 12 November 1966, Page 1

“No Lead By Council To Solving Labour Shortages”

(From Our Own Reporter)

WELLINGTON, November 11.

Disappointment at the “short-sighted and unhelpful” view on immigration adopted by the Monetary and Economic Council in its recent, report to the Minister of Labour and Immigration (Mr Shand) was expressed today by a committee representing 17 national employers’ organisations.

The group has made representations to the Government over the last 18 months aimed at increasing the immigration rate with the object of meeting Government requests to increase the national product.

„ The group regards as “equivocal and unhelpful” the statement made to Mr Shand by the chairman of the Monetary and Economic Coun- . cil (Mr E. D. Wilkini son).

Mr Wilkinson said: “The council has concluded that immigration can be and ought to be used to meet persisting shortages of skilled labour, but that general shortages of labour arise out of a situation that immigration is likely to aggravate.

“Although general immigration appears to be quite inappropriate in present circumstances, that does not rule it out in the future under other circumstances.” Mr G. R. Kear, chairman of the executive committee of the group, today expressed the disappointment of the

group and its individual members, with the council’s report. “The basic reason for our

disappointment is that the Monetary and Economic Council has completely failed to give a lead as to how the economic results of the pre-

sent unsatisfactory situation may be eased,” Mr Kear said.

Labour Competition

“It surely cannot be admitted that the present situation, in which employers are competing for full-time and part-time staff in order to keep their own projects moving, is a healthy or even a supportable one. “The council, in its wisdom, has refrained from telling the Minister or anyone else just how inflationary this bargaining for labour can be.

“This group is well aware that for many years New Zealand has been told that the answer to our economic ills lies in greater production. Neither the council nor the Government has troubled to tell us how this can be achieved without some increase in production staff. “Some other points which seem to have been by-passed by the council, are: 1. That the great majority of immigrants, assisted as well as unassisted, bring a part of their own needed capital. They do not arrive here destitute —nor can they do so legally.

2. The money they bring into the country—completely disregarded in the council’s arguments—must reduce considerably the time during which their presence may be regarded as inflationary. 3. Within a short time, their productive efforts must produce more than the initial inflation. This is ad-

mitted—but tends to be played down—by the council in its report.

“The council appears to be governed too closely by earlier expressed opinions which suggested that New Zealand’s salvation from economic troubles lay in retrenchment. This is the opposite to what the Government is now advocating. Production, we respectfully submit, needs people.” The organisations concerned are: Associated Chamber of Commerce, Dominion Sawmillers’ Federation, Carriers’ Federation, Employers’ Federation, Glass, Paint and Wallpaper Manufacturers’ Federation, Joinery Manufacturers’ Federation, Manufacturers’ Federation, Engineering and Related Industries Association, Master Builders’ Federation, Master Printers’ Federation, Public Passenger Transport Association, Retailers’ Federation, Retail Motor Trade Association, Road Transport Alliance, Timber Merchants’ Federation, Wholesale Hardware Guilds’ Feder- . ation, Wholesalers’ Federation.

The representations were also supported by the Auckland Master Builders’ Association.