HIGHER OUTPUT

Dominion, Volume 21, Issue 9, 5 October 1927, Page 10

HIGHER OUTPUT

ONLY WAY TO SOLVE UNEMPLOYMENT ABOLITION OF COURT NOT FAVOURED PROTECTION OF LOCAL INDUSTRIES The necessity for a stimulation of production, rather than the abolition of the ArbitrationCourt, as a means of solving the unemployment question, was stressed by Mr. F. Campbell, in his presidential address, at the annual meeting last night of the Wellington Manufacturers’ Association. Ho described how a concentration on increasing productivity and reducing costs in the United States had had a farreaching effect on industry generally in that country, and declared that it was only in that way that the prosperity of New Zealand could be brought about. Whv was it, said Mr. Campbell, that in a young and growing country like New Zealand, many persons, willing and able to work, were unable to find employment? Some blamed the Arbitration Court for fixing too high a wage, for skilled and unskilled workers, and advocated the abolition of the Court., He was not in favour of that course, as the Arbitration Court had done good work both for the employee and the employer. It might be. and he believed it was true, that it needed revising, but until some better ij-seheme was put forward he could not see how doing away with the Arbitration Court would improve things. Reduction of Costs. It had been claimed that, if the Court were abolished, wages would be reduced aud lower prices would result. He was not in favour of lowering wages. Lower wages, in his opinion, meant a lower standard of living. Speaking of the policy of employers in the United States of America depression of 1921, the report the British delegation which recently visited Canada and America to study industrial conditions, said that the resistance to the policy of wage reduction as an item in deflection was sufficiently great to enable other councils to receive consideration and to bring to the front the fact that in the special economic position of the United States such a policy would re-act seriously upon agriculturist and upon manufacture for the domestic market. The policy changed to the reduction of costs, other than by turther wage reductions, and a general increase of efficiency, with the maintenance of the purchasing power of the people at the highest levo] had had a far reaching effect on American industry generally. How America Succeeded. “Look at America’s industrial prosperity and efficiency to-day,” continued Mr. Campbell, “and you will see it was not attained by lowering wages, but mainly by Hie fact that the- manufacturers are assisted in the development of their home market by complete freedom from tariff restrictions, within the union of the forty-eight States, and by protection against competition from outside bv a strong tariff machine, which is capable of easy and rapid adjustment to meet changing circumstances; and I say that where America succeeded New Zealand can succeed just as well. “I am not claiming that protection is the solution of our unemployment question—far from it. The solution, I believe, is production. We can't become really prosperous without full production. and the goods must come through the work of every one of us. It is in this way that individual and national prosperity will come. The Workers’ Attitude. ‘1 know some critics will say at once That’s the trouble, rcihy; sen’t

give us his maximum output.’ I wonder if wo have ever thought just why. Might it not be that ho is a little afraid of working himself out of a job; that there isn't enough work to go round; and he had better hang on to what there is. It’s a wrong attitude, but it’s logical. Here is where protection is needed. Preserve for the worker his own home market, particularly in those industries suitable to his country. By that I mean, where the raw materials are natural to his country; see the manufactured goods needed on his home market are made in his own market and not imported from countries where the standard of living, the wages paid, and the restrictions on the employing of labour, are not equal to those in his own country." General Effect of New Tariff. Contained in the new tariff there were some instances of encouragement to secondary industries, but in the main industries, according to the resolution printed some days ago, had received no assistance whatever, and those were the industries that could assimilate. the worker quickly and effectively. It would bo safe to say that the manufacturers generally were disappointed with the tariff proposals, and unless some radical alterations were made, several of the main secondary industries would slip back. It might not happen this year, because present indications pointed to increased output and betler prices for primary products, but ho maintained that our system should bo one that, would insure prosperity in New Zealand at the lowest periods, aud not only when prices were high. In his opinion the present tariff proposals were revenue-producing proposals, and not in the best interests-of Hie secondary industries. Production —And Merc Production. “In conclusion,” said Mr. Campbell, T would like to say again that tlm prosperity of New Zealand, and the solu tion of o"ir unemployment question, is production, both primary and secon dary. Moro work, more goods; more money, more prosperity; more comfort •>nd greater security."