WAGE REDUCTION

Evening Post, Volume CXII, Issue 33, 7 August 1931, Page 4

WAGE REDUCTION

ACCOUNTANTS' DEBATE

"Whether a^ reduction' in ' wages < will materially assist the .re-establishment' of the economic position .of the Dominion, was the question debated 'by.'the "Wellington Accountant i Students' , Society, last evening. There were three speakers'in the affirmative,, and three in the negative. The adjudicator, M. F. C. ;Spratt, gave his. decision'in favour of the affirmative (Side. It was a trial debate in practice for the annual contest with the Chri&tchurch Society for the Best Shield. Mr. A. P.'.O.;Shea, leading for*the affirmative, said that New Zealand's prosperity depended upon being able to export its primary produce. New Zealand's income was fixed m London, and the Country must cut its coat accoiding to its cloth. "To enable farmers to find their feet financially, costs must be reduced, and the quickest way to effect' that was" by a reductiou of wages. He attributed the fictitious values in New Zealand to tho tariffs and the Arbitration Court. The country was mortgaged up to the hilt, in support of which, he-quoted figures showing* that in the last decade imports had exceeded exports by 62 millions. The people of the Dominion could not expect to maintain the same standard of living and spend at the rate they had done in the past. The reduction of the farmers' spending power had reacted , on" other industries, and so the general depression had come about. A reduction of wages would do much to b™B about a i-estoration of prosperity, - Mr. H. L. Cooper, leader for the negative, referred to -1026/ when' so many motor-cars were imported, and said that most people could afford radio sets and even tur coats He submitted that the country would soon emerge from its present .economic position and enter on a period of prosperity such' as was experienced in 1926. -At present one-third of the income was devoted to shelter, and insurance, and only the balance could be regarded as purchawng power. Wages had little proportion to the cost of primary production. Reductions in wages hit the pnmaiy producer and the manufacturer, and did not contribute to the lestoration tX f, con°mic Position of the Dominion. Mr. K. T. Wright, supporting the affirmative, said wages could not be maintamed at the piesent high level. *,?-^ L- .v- 'Phillips, contended that a , reduction in wages wns quite the wrong course, to. take to restore the ccouomi? position. The small, saving effected could not-be passed on to the. consumer. The I effect on the worker was to reduce his stondard'Of living and efficiency, and tended to create "unrest. Air T?V4> S afiis?" ™* Hs" „ ■ Hl- Dj,Hnll .(negative) also spoke, some ,- friendly criticism was made by Mr. Spratt, who said that the affirmative nad the better of the argument .The a\id°OThe° nt t9 Messrs' Wri Bht. Phillips,