Employment challenge

Press, Volume CXII, Issue 32860, 8 March 1972, Page 2

Employment challenge

The Leader of the Opposition (Mr Kirk) has challenged the Minister of Labour (Mr Thomson) to say if the Government accepts or supports the statement on unemployment, reported to have been made in Christchurch by the Governor of the Reserve Bank (Mr A. R. Low).

“Mr Low is reported as saying that people were persuaded to work industriously only when there was unemployment or the possibility of unemployment,” said Mr Kirk, the Press Association reports.

“This is the old doctrine of six men for five jobs,” he said. “Unemployment is a fact and it is biting hard in Christchurch.

“I challenge the Minister

to state at once if unemployment has been deliberately allowed to grow in Christchurch to this point of time, in order to stir the people at work into harder efforts. Or will the Government deny and denounce the view expressed by the Governor of the Reserve Bank?”

It was not true to say that people worked harder in these conditions—if it were, banking would not be such a highly protected industry “and Mr Low knows that this is so,” Mr Kirk said. “Nor it is correct to suggest that business and industry has improved its efficiency only when its existence is threatened by a slowing of demand and falling profits.”

Until 1965-66 in conditions of full employment productivity grew an average of 2.5 per cent a year. “In the conditions of seasonal and sometimes pro-

tracted unemployment since 1966-67, productivity has fallen to disastrous levels and would be scratching to have averaged 1 per cent per annum improvement since 1966-67.

“It is reported only today that Pacific Steel for example, has, because of economic conditions created through adherence to traditional financial policies, had to cut its production and its employment in shift work because of a drop in forward orders.” This had been reflected by an 18 per cent reduction in the company’s consumption of electricity, Mr Kirk said.

Maiden voyage.—The third 25,000-ton container ship in the Pace line fleet, ACT 5, is on its way to New Zealand on its maiden voyage from the east coast of North America. Its first call will be Auckland, on March 18.— (PA.)