THE WAGE STANDARD

Evening Post, Volume CX, Issue 86, 8 October 1930, Page 12

THE WAGE STANDARD

Tho Leader of the Labour Party (Mr. H. E. Holland) introduced the deputation, and said it was representative of the ■ whole of the Labour Movement. They asked that there should be no attack on the wage standard. New Zealand ••was not in the serious position that many people would like the country to believe. "OVERPRODUCTION." ■ '"A fortnight ago to-morrow' a, deputation representative of the' commercial and employer interests waited upon you. and urged you to introduce legislation this session to legalise the repudiation of all awards and agreements at present operating in industry," said Mr. W. Bromley, president of-the Wellington Trades and Labour Council. "At the same time the deputation affirmed their belief in the principle of compulsory conciliation .and arbitration. It is an open secret that; in • 1928 these saino people were epposing the arbitration system and, failing to destroy the system then, they now make suggestions which, if acted upon, would effect that which they failed to effect in 1928. . No more sure ' method of destroying the workers' confidence in the Court could be conceived than that suggested by the employers •when they met you recently. The basis of their ease was- the drop in •world's.prices for our primary products and the consequent difficulties occasioned for industry generally and the small, farmer in particular. If the repudiation of the awards as suggested by the employers would fcring back the high prices ruling a few years ago for our marketable products or offer any solution of the trade depression which is afflicting this country in common with other countries it might be worth considering, ..We are convinced, however, that ■ such a procedure, contrary to "bringing relief, would intensify and aggravate the present difficult situation. "It is agreed" by many _ experts, among the number being Sir Otto Nieineyev, that tho principal factor responsible for the present world-wide trade 'depression is over-production. Over-production is only the converse way of saying under-eonsumption. For many years the world's best brains navo been engaged on the problem oil increasing production, and inventing machines to displace human labour. It is about time to set the best brains to work on the no .less interesting, difficult, and intricate task of increasing consumption. ECONOMISTS' FINDING. "An Industrial Conference was called to consider the whole position. The delegates to.the Conference from both the employers and the employees wre chosen for their special knowledge of'the. questions affecting industry.. In addition, the best economists from our universities were also invited to attend to' advise on questions of political economy. In- certain details_ these - economists were . somewhat divided in opinion, but on one matter they were unanimous—that over-capitalisation of industry is the greatest factor in our industrial troubles at the present time. If it is by and through legislation that ■we-, are to get relief, that legislation mußt aim at reducing the wages paid to capital, more particularly to that capital which is idle or in excess of requirements, and simultaneously increasing, not reducing, the wages paid to labour. In short, the serious overcapitalisation in industry, the maldistribution of the national income, the low standard of living of the workers which has not been allowed to advance" in .sympathy with our capacity to produce, and the serious underconsumption which has resulted are the phases of our' national life which call for immediate attention. It is the greatest condemnation ■of the present system ' governing our society that after all the wonderful success achieved in the field of production; after all the advances made in the application of science to industry, we still talk about a 191-1 standard of living in terms which can only convey the impression that the standard of living enjoyed in 1914 represents the summit of human social development. THE 1914 STANDARD. "I would again remind you that the ' workers have never reached the standard'of 1914 since the war in reality," continued Mr. Bromley. "That the standard of 1914 4s a satisfactory standard is not the viewpoint of the people we represent. We claim that our productive ■ capacity has reached a stage at which a higher standard of living is both possible and justified, and yet we dp not consider that" we have nearly reached our full capacity .to produce. Apart from the SOOO to 10,000 of our able-bodied men who are not allowed to produce anything at'the present time, it r is well known that tho management of many of'our secondary industries is far, from- scientific. It is perhaps unusual to base an-- argument for increasing the standard of living on a trade depression, but in no other way can we- create the increased capacity to consume what we produce, which is the need of the moment. "When the Governmcut cumc into office a promise was made to a deputation representing the industrial movement that a Commission would be set up to bring down a report on the requirements of an 'average family to maintain a reasonablo standard of living. We still urge tho Government to honour that promise made by its late leader, and set up such a Commission. In addition, you should conduct an inquiry into the questiou of overcapitalisation and high interest charges, with a view to ascertaining to what extent these two factors are overburdening our industries. This maldistribution of the national income is the most potent cause in the present difficulty in connection with unemployment. Increased production has certainly taken place, but increased production, only becomes an advantage if it is reflected in a raised standard of living, which means a corresponding expanded market for the goods produced. Instead of the increase in the wealth production of the inoro prosperous years during and following.the war being absorbed in that manner, it was largely- used up in capital expenditures wMeh wera not justified, and sinvul-