‘No General Order If Costs Held’

Press, Volume CVI, Issue 31318, 14 March 1967, Page 1

‘No General Order If Costs Held’

(New Zealand Press Association) AUCKLAND, March 13. The Federation of Labour would not apply to the Court of Arbitration for a general wage increase if the Government was prepared during the same period to stabilise cost and prices, the F.OX. president, Mr T. E. Skinner, told the Auckland stop-work meeting this morning.

It should be possible to run industry at a sane level which does not strain capital resources, supplies of labour, or overseas funds for materials, and keeps internal trade from running away into inflationary excesses,” said Mr Skinner. “We recommend, too, that some common sense be injected into the production and sale of primary produce so that we can find markets and sell profitably on these markets.”

There should have been a much more energetic investigation into the possibilities of industries not dependent on grass for production and on markets in Europt for sales. If the price of butter went to £3OO a ton, New Zealand should face up to it instead of hiding behind a "guaranteed price” which had no foundation in fact If butter could be sold at £3OO a ton, well and good; if not, it was long past time an alternative was founct

“In the same way if the price of wool is under 36d a lb why not accept it instead of bumping up the floor price, as was done last year, and having stocks of wool but no overseas funds?

"Does the whole population have to suffer because the sheepfarmers refuse to accept market prices for their produce?” He said New Zealand was heavily in pawn to various financial houses. The Italian Government would assist in building the Tongariro tunnels. The Japanese would put New Zealand on the list of undeveloped countries and finance the extensions to the harbour bridge. World Bank There was only one place left to go—New Zealand was heavily in debt there—and that was the World Bank. New Zealand could only progress by keeping development within its resources and available manpower. The country should be diversifying its exports and markets as far as possible to prepare for the inevitable day when Britain joined the E.E.C. The F.O.L. believed the Government would at the first opportunity: Increase indirect taxation which meant increasing the price of petrol, alcohol, cigarettes and tobacco.. Abolish subsidies on milk (£6 million), eggs (£600,000), gas (£620,000), rail transport of coal (£250,000). Increase the cost of electric power. Introduce some charges for certain social security benefits now provided free. ■ The F.O.L. would oppose an increase in indirect taxation “by every possible means." Taxation Effect Unless it was drastic and widespread the return from this sort of taxation would be too small tb justify its adverse effects, even in the Government’s eyes. “OUr suggestion is clear-cut, unlike the Government proposals which would not have the desired effect until they had imposed a savage cut in

the workers’ standard of living, stripped them of their savings and ground them down to a subsistence with the very real threat of unemployment hanging over them. “To do this there would need to be some unemployment How much would depend on the Government which should know that it is easier to start a downward deflationary spiral than it is to stop one.”