‘Govt should be firm on wages’

Press, Volume CXIV, Issue 33514, 20 April 1974, Page 9

‘Govt should be firm on wages’

The Gove r n m e n t should not give in to demands for a return to free bargaining hut should extend its wagefixing arrangements after they expired in June, said Professor B. P. Philpott on Thursday evening. of the same sort as are granted to manufacturers, related to those farmers who do increase production and I not an across-the-board handout as in 1972.”

While arguing for renewed agricultural expansion. Pro- ’ lessor Philpott said this did’ The Minister of Trade and i • Industry (Mr Freer) had said! he expected prices to rise at; least 144- per cent this year.’ The Public Service Association and the Federation of; Labour considered that wage! rates should rise 20 per cent.! “A rise of that magnitude! with the added allowance for wage drift would, other i things being equal, increase! the cost of living about 18 per cent and provide a mas-, sive push of the economy! into hyper-inflation.” FARM PRODUCTION On agricultural policy. Professor Philpott said the Gov-1 eminent did not appear io! have recognised the importance of agricultural produc-j tion in the economy. Recently much emphasis had been placed on marketing problems and policies when what was required was production. Immediate policy action should be concentrated oh re-: storing confidence and encouraging an expansionary • attitude to the agricultural! ’ industry. “I suggest this should take! the forpt of restoring in the! Budget the subsidies which’ were cut out in the last Bud-1 get. and also the possible in-1 traduction of tax incentives.;

mot mean he thought manufacturing expansion was un’important — it had been of; i critical importance for the ! renewal of economic growth jin the last two years, and would remain so.. He proposed that the Government should agree to set; much higher manufacturing’

export targets and provide the monetary incentives where necessary to achieve them. In return the manufacturing sector would need to accept a restructuring of the import control system, involving a strict price control at levels no greater than 30 ’per cent above import prices.