Labour and Wages

Dominion, Volume 25, Issue 168, 12 April 1932, Page 11

Labour and Wages

Sir, —In the daily papers of March 4 Mr. H. E. Holland, Labour lender, a reported as saying that New Zealand products during 1929-30 amounted to approximately £119,172,560, of exports £4b,“33,507, and local consumption £72,949.503, and states that this shows that til per cent, of the products of the country was consumed locally, indicating that the principal market for products was here in New Zealand. Mr. Holland ignores entirely the fact that the 61 per cent, consumed locally, with the exception of wheat and a few small lines of primary products that are used up locally, was the product of secondary industries, and earned no external wealth with which to pay interest on external loans borrowed by the Government and, public bodies. Further, he ignores the fact that practically all these industries, ineluding wheat, are protected by heavy import duties amounting from 15 per cent, to 55 per cent, import duties. The £46,223,597 of export, with the exception, of about 44 per cent., was all primary products, and had to compete against the world's markets under the same lines, and under the labour conditions obtaining for same in the different countries. He thus cut the ground from under his own feet, as it is plain that without protection the secondary industries could not stand, up a day against outside competition in their various lines, and it is only the high tariff duties that force this 61 per cent, of products into local consumption; this also applies to the primary product, wheat. The butterfat producers, the meat and wool producers, etc., of the £46,223,507 that goes to create wealth, wherewith to pay interest on the borrowed millions, have thus to contend against a high barrier when buying local secondary manufactures The arbitration awards, both of wages and working conditions, plus certain Labour unions, have continually bunt themselves up in regard to increased wages, etc., under the shelter of the tariff duties, and in many instances owing to wages costs, etc., have built up the price to the consumer so high that the proprietors and shareholders of the different concerns have been ruined, or nearly so. and their lines of manufacture forced off the market, or nearly so, to the detriment of both the employer and employee and general consumer. It is quite evident that the farmers, ever since 1925-1926 have been buying against an adverse exchange in the local market, and the world conditions, beginning in 1929-30, added speed to these adverse conditions, until to-day, allowing for the general 10 per cent, cut, the purchasing power of the farmers, £1 or 20 shillings, of 1928-1929, has decreased oy an adverse exchange to an average oi Reform Government of 1928 practically lost its rule to Sir Joseph Ward and the United Government, owing to Mr. Coates’s stand to reduce wages, etc., on relief and public works, to modify to a degree this adverse exchange, and if the Ward Government had been able to keep up their pledges re the £70,000,000, etc., for the above and the ever-increasing burdens imposed by the Arbitration Court’s awards, we would have been m our present condition even if the British market had stayed at the 1925-19-J level Air. W. J. Polson, in a recent speech in the House, drew attention to one link outstanding in this chain, when he referred to the bobby calf industry and the strangle-hold the arbitration award rates of pay had put on this industry; also the conditions these awards more or less had brought two big trading concerns to. Evidently Air. Polson has the courage of his convictions, and is putting country before certain classes <n voters whose voles he may lose; but not so certain other members of the House, both in the Coalition Party aud the Independent forces.-! am, AUST i N .

R™—ln regard to certain Labour members’ comments on statements made bv the Dunedin Chamber of Commerce re the Arbitration Act, the farmers cannot forget the fact that business men throughout New Zealand calmly suoinitted to increases in wages; easier conditions, of hours, etc., while millions weie being borrowed and put into circulation, to help on their business and pay inleased wages. There was «<> producers’ representative on the boar.. but the farmers had to foot the Dill.