BURDEN OF COSTS

Dominion, Volume 30, Issue 192, 11 May 1937, Page 10

BURDEN OF COSTS

Vicious Circle Seen In Operation VIEWS OF EMPLOYERS Industry Must Have Margin For Expansion “The good 1 prices that have obtained for our primary products during the past year or two have assisted us to meet most of our increased burdens, but with the vicious circle of costs and prices increasing at such an alarming rate, we hesitate to express definite opinion on the ultimate result of the Government’s policy. The Government is evidently beginning to realise that some means must be used to stop the ever-increasing costs.” stated the report presented at the annual meeting of the Wellington Employers’ Association last night. “Recently the Minister of Industries and Commerce, when replying to a suggestion that a fortnight’s annual holiday should be given to all workers, is reported to have said: ‘We must take care not to do anything that will make it impossible for local industry to carry on.’ “Industry must have a margin for expansion if we are to progress. That margin is becoming less each day because of increasing costs, and if this state of affairs continues it may be difficult to adiust the balance. “The executive trusts that the good prices that have been obtained in the world’s markets for our products during the past four years will continue, and that the economic conditions in the Dominion will not be further impaired by unnecessarily imposing greater restrictions and difficulties upon our primary and secondary industries. Entire Change in Conditions. “Hours of employment have been reduced, wages have been increased, holidays have been made compulsory for all workers in factories, and, generally speaking, there has been an entire change in the general conditions of employment,” the report continued. “The effect of such legislation is not fully appreciated, and we must wait and see whether benefit to the mass of the people will be achieved as a result thereof, and also whether such drastic changes will improve the lot of all who are engaged in the manufacturing industries of this Dominion. “The Government, by putting into operation several large public works ventures, have been able to reduce the number of unemployed, and in addition, have brought about a greater circulation of money. The effect of this, together with the high prices that have been ruling in the world’s markets for our wool, has certainly improved trade and has been the means of overcoming some of the serious difficulties that were so apparent throughout the depression period. “The four Wellington wool sales held during the season have realised nearly £3,000,000, which is the best result obtained for over eight years. This season’s proceeds from sales are approximately £1,000,000 in excess of those for the year 1935-36. The good prices thus obtained will undoubtedly assist in stimulating local trade. “At the same time, it is expected that as from the beginning of the next export season there will be an increase in the guaranteed price for dairy produce with its consequent increases in wages. “It is believed that the increases in wages with the reduction in working hours will have a very marked effect by increasing the cost of commodities and materials produced in the Dominion. Caution With Money. “It is already apparent that people are exercising caution in putting money into buildings and other channels which have hitherto been found safe investment.” Reviewing the industrial legislation passed last session, the report commented on the Factories Act. It stated that the minimum rates of wages payable under the Factories Act had been increased by making the starting rate not less than 15/- per week with halfyearly increases of 4/- per week on the agreed rate until 40/- per week was reached. Service in any kind of factory counted for the purpose of determining the wage payable to a worker irrespective of whether there was any similarity in such work. The increased rate of payment had had a far-reaching effect upon industries and created difficulty in relation to apprenticeship orders rates of payment until the question of whether apprenticeship contracts entered into prior to the amendment of the Factories Act were subject to the altered rates was decided by the Court of Arbitration o nMarch 24, 1937.