FIGHTING SPEECH

Evening Post, Volume CXI, Issue 68, 21 March 1931, Page 10

FIGHTING SPEECH

REPLY TO ATTACKS

LOT Ob 1 THE WORKER

LABOUR MINISTER IN FORM

AWARDS NOT CONTRACTS

A feature of ihc second reading speeches on the Finance Bill in the House of Representatives last night was a spirited reply by the Minister of Labour (llic Hon ; S. G. Smith) to critics of ihe Government's proposals to overcome the present economic difficulties of the country. Speaking as a man who had been on low wages for the greater part of his life, Mr. Smith vigorously defended the Government's action in reducing wages, and said he was confident that it would ultimately prove to the benefit or the country as a whole. He made special point of the fact that an award of the Arbitration Court was not a contract beween employer and employee. The Minister denied that tho Government was trying to reduce tho standnrd of living of the workers. He tool, Iris full responsibility as a member ot the Government for tho proposals which had been brought down. Ho had Jived the life of tho lower-paid Civil servant for twenty years, and for that reason it was hard or for him. to agree to the proposals than any other member of Cabinet. So far as the Arbitration Court was concerned, the present Act merely gave tho Court power to reduce by general order the wages paid under awards, and every union had the right to go before the Court and ask for exclusion from the general order. No apprentice working under present awards would be affected under the proposed legislation. ""We have been told that these proposals amount to a breach of contract," saia the Minister. Mr. P. Fraser (Labour, Wellington Central): "Hear, hear." Mr. Smith: "The hon. gentleman will not be so glad to say 'Hear, hear shortly. We have been told that there •will be a repudiation of contracts.' Mr. Eraser: "Hear, hear. Mr. Smith: "And a'breach of agreottMr. Eraser: "Hear, hear." Mr. Smith: "And a breach of faith. A member: "And a breach of promlMr Smith: "Why, in 1918, the hon. gentleman supported this very legislation." n . , Mr. W. E. Parry (Labour, Auckland Central): "Now, be careful." LEGISLATION OF 1918. Mr. Smith: "Tinder tho War Legislation Act of 1918, power was given the Court to review awards and increase or decrease the rates of; pay in New Zealand. 'Hansard' will disclose that the hon. member for Wellington Central, then, like myself, a new member, tho hon. member for Buller, and the hon. member for Lyttelton did not oppose this legislation." The Leader of tho Labour Party '(Mr. H. E. Holland): "That was legislation .to increase wages." (Reform laughter.) The Minister: "Yes, exactly, and it •was good legislation. The Court exercised its right, too. Nobody then suggested that it was a repudiation of agreement. .Nobody said it was a breach of faith. Now, when New Zealand is facing one of the greatest financial crises it has ever faced, and the Government of the Day is charged with the responsibility of bringing forward legislation, tho same members who approved the principle are to-day calling dut 'Repudiation.' " Mr. Parry: "Hear, hear." ■ Mr. Frascr: "Will the Minister admit that I said then that the Court had power without any additional legislation?" Mr." Smith: "I say the hon. gentleman did not oppose the principle of this legislation that gave the Court power to to view awards." Mr. J. T. Hogan (IndependentUnited, Kangitikci): "And reduce if necessary.'' Mr. W. L. Martin (Labour, Eaglai/: "Who forced the Government to bring the present legislation down?" The Minister: "No one forced the Government, except tho stress of financial circumstances." .Mr. W. E. Barnard (Labour, Napier): "Sir Otto Nicmeyer." Mr. Smith said that if there was to be a reduction in salaries and wages in New Zealand all should participate. Mr. J. S. Fletcher (Independent, Grey Lynn): "The wages on capital, too?" SYMPATHY FOR LABOUR. The Minister said he did not envy the position of the Labour Party, and 3ie sympathised with its members. Ho knew the man inside tlio Public Service looked at the high rate of remuneration that was being paid to men outside the Service. The Minister said that before the passing of the War Legislation Act, 1918, the Court did not have power to amend awards. Mr. Fraser: "That is not correct. May I aak the Minister if he knows about the 1914 legislation:" Mr. Smith: "I suggest that tlio hon. gentleman has not yet spoken, and will have the opportunity of putting his side of the case later on." Further interjections led 1o Mr. Speaker issuing a general warning that speakers must bn allowed to proceed without what wore commonly called heckling interjections, which were highly disorderly. Mr. Smith detailed the various increases which had been made under the 1918 legislation, and said that when the cost of living began to fall again the Court on at least two occasions refrained from making any wages reductions. "My point," said Mr. Smith, "is that there was no talk of repudiation at the time of the 1918 legislation. In a tiino of crisis so grave as the present every member of this House should forget party and not attempt to take party advantage of the Govomment by charging it with repudiation of contracts. (G-overn-ment applause.) An arbitration ' award is not a contract as between employer and employee. Mr. J. E. Hamilton (Reform, Wallace): "Hear, hear." Mr. H. E. Holland: "Is not an agreement made registered as an award?" , NOT A CONTRACT. Mr. Smith: "Whatever point of view tho hon. gentleman takes, an Arbitration Court award is not a contract between employer and employee. The law ol freedom of contracts is still left to both parties. There is nothing to prevent any employer or worker agreeing to work at any old figure above tho minimum rale. The agreement the hon. gentleman talks about fixos tho minimum rates which must bo paid. I have it on tho highest, authority in Now Zealand lhat an Arbitration Court award is not a contract between employer and employee. Most of the wages are fixed in normal times, but. when conditions become abnormal, the Slate

is justified in taking action to enable wages to be brought into line with current economic conditions." Mr. Smith referred to the action of Labour Governments in Australia iv giving tho Arbitration Court power to vary awards, and ho instanced several cuts which had been mado in various States in consonance with tho fall in tho coat of living. The proposed legislation had been introduced for tho purpose of giving the Court power to do what Labour Governments had always given the Court power to do in Australia. Reference had been mado during the debate to tho question of unemployment, and ho wanted to say that if the proposals in the Bill were not placed on the Statute Book it would mean that many hundreds more would join Iho ranks of the unemployed. That would bo inevitable. There had been some criticism of the work the unemployed were doing, but he wanted to mako it plain that the selection of work was a matter for local bodies, tho Unemployment Board merely providing tho money. NOT FROM INCOME. A suggestion had been made that the deficit could be made up from income tax, but who knew to-day what the assessable income would be for this year? He had been in conversation with a friend who had just paid £400 in income tax, and he told him that in all probability he would pay little or no income tax next year. Who therefore would know what the assessable incomo would be next year? Mr. W. D. Lysnar (Independent, Gisborne): "Ask the trusts, they will tell you." Tho Minister said that the other night the member for Lyttelton had quoted from leading American economists, but ho overlooked the fact that America itself had an army of over 7,000,000 unemployed. I" England, under a Labout- Government, there wero 3,000,000 unemployed. Mr. R. Somple (Labour, Wellington East): "A Government in office, but not in power." Mr. Smith: "Well, they are there." Mr. Semple: "Hanging on like you are." Mr. Speaker: "Order! Order!" Mr. Smith said the Government was making an earnest attempt to meet the present situation, and he knew that tho proposals were most unpopular. He did not care about that. He believed that what was being done now, though distasteful and unpopular, would eventually be for the good of New Zealand. If it were otherwise, said the Minister, and if it could be shown to me that what I am doing to-day is going to inflict unnecessary hardship on the workers of New Zealand, I would have no hesitation in walking away from this side of the House. A Labour member: "Come over here." A HARD WORKER. "I am honest in my belief," continued Mr. Smith. "There is no man sitting in this House who has worked harder helping to deal with the extraordinary position that has arisen than myself. During tho recess other members were able to spend many weeks in their own homes, but 1 have had only six weekends at home since last session. I have sat for hours, and I have studied out this position, as a member of the working class of New Zealand, and if there is anybody who can show me that there is some other method than that proposed of putting the finances of New Zealand on a sound footing and facing up to the position, I will have no hesitation in leaving my Chief. I believe he is courageous and honest; I have studied the proposals, and I stand by my Chief. I believe wo havo nothing to fear." Mr. Semple: "You go to the country." Mr. Smith: "I am not afraid to go to the country. I am not afraid to ■do my duty, distasteful though some people say it is. I do stand by my Chief." The Minister sat down to the accompaniment of a round of applauso from the Government benches.