Abolition of wages body “disastrous”

Press, Volume CXII, Issue 33061, 31 October 1972, Page 1

Abolition of wages body “disastrous”

(New Zealand Press Association)

WHANGAREI, October 30.

The Labour Party’s promise to abolish the Remuneration Authority before Christmas if it became the Government would be disastrous, the Prime Minister (Mr Marshall) said tonight, opening the election campaign in the Whangarei Town Hall. 8

“That would lift the lid off inflation,” he said. “We would be in for another round of inflation. The prices-wages spiral would be away again. In the short term this is the most compelling reason for keeping the National Government in office.”

Mr Marshall said that New Zealand had, in the last three years, suffered from worldwide inflation. The Government’s restraints had not been popular but they were paying off.

“We’re steadily getting back to normal,” he continued. “We’re putting value back into wages and prices and stability into the economy. We have to keep it that way and we will.” Mr Marshall said that it was no coincidence that the Federation of Labour had opposed the Remuneration Authority and had long wanted to get rid of it. "This is the first example of the undue influence of the Federation of Labour on the policy of the Labour Party,” the Prime Minister said.

The F.O.L. had pledged its support to the Labour Party and was using all its influence to defeat the National Government. “That is a further reason to keep the National Government in office,” he said. “We will govern in the future, as in the past, in the interests of the country as a whole. We are not, never have been and never will be, dominated by the Federation of Labour or any other sectional group.” Referring to trade union support for the Labour Party, Mr Marshall said that a Government must be independent of pressure groups. Controls remain Mr Marshall held out little hope for an immediate lifting of the stabilisation measures.

“We cannot let them go until we are sure that the inflationary pressures are squeezed out of the eco-

nomy,” he said. “That mightn’t be popular but it’s good government. Then we will ease out these controls gradually and steadily during the coming year.” The Government would continue to hold prices steady for bread, milk, sugar, postal and freight charges for “as long as the stabilisation policy justifies it.” “There will be no increase in the price the Government charges the supply authorities for electric power next year. Things are going so well with the economy now that we must not rock the boat.” “Good year” Mr Marshall forecast that “we’re in for a good year ahead.” The building industry was in full swing again, unemployment was dropping, more jobs were becoming available, imports and exports were up, manufacturing output was increasing, farm prices were not too bad, retail sales were improving and the share market was now on the move upwards. “The evidence is now clear that the upturn in the economy which we have been waiting for is now well on the way,” Mr Marshall said. “This has been the objective of Government’s economic policy this year to combine a return to great stability for prices and wages, and to stimulate economic growth and business confidence.” Mr Marshall listed the abilities of his Cabinet colleagues and, with a series of important international trade negotiations coming up, added: “Frankly, I don’t think the Labour Party have got men of the same calibre.” Relations bill Turning to industrial relations and the bill introduced to Parliament recently, Mr Marshall said: "We are not seeking any confrontation with trade unions. We are merely saying that the Government will govern.” He said that he agreed that trade unions had a responsibility to get good wages and working conditions for their members. “But I do not agree that it is the business of trade unions to use strikes and stoppages to try to force their point of view on the rest of the community about social or sporting or international affairs which it is not their business to decide,” he added.

Referring to union action over the French nuclear tests, Mr Marshall said that the Government condemned this extreme action but did not have any legal power to stop it. The Industrial Relations Bill provided penalties by way of a substantial fine for such action.

Fines on union “We’re not proposing to put trade union leaders in gaol as some have claimed, but we will be making provision for fines to be collected against the assets and funds of the union or person concerned,” Mr Marshall said.

Mr Marshall suggested that a Labour Government, tied in with the Federation of Labour, could not act impartially in industrial matters.

The Government had been patient and restrained in industrial matters but when parties had gone too far it had acted firmly, he said, citing the deregistration of the seamen’s union.

On law and order, Mr Marshall said that the Government had responded vigorously to protect the lives and property of peaceful and law-abiding citizens. “At the same time we are

taking positive action to deal with the root causes of crime,” he said. “Prevention is always better than cure so we are paying increasing attention to building a social climate which will minimise the tendency to crime. Crime measures

“The National Government is determined to do all in its power to combat crime of any kind, but especially violent crime, and we will continue to take all available steps within the law to ensure that people are adequately protected against molestation and are able to enjoy the security of their homes and are free to go about their lawful affairs,” he said.

Referring to the party’s manifesto, Mr Marshall said one would not find lavish promises of great sums of new Government expenditure there.

“There are extensions of what is being done in social welfare, education and other services and some new policies which will have to be paid for,” he added. “We would expect to finance these from the revenue which comes from the rising national income. If we can keep Government expenditure within the limits of revenue at present rates of taxation from a rising national income, we can have something left to reduce the rates of taxation,” the Prime Minister said.