THE WAGE BILL

Evening Post, Volume CXIII, Issue 118, 20 May 1932, Page 6

THE WAGE BILL

EFFECT QE THE 'CUTS

DO FARMERS BENEFIT?

(By Telegraph.) (Special to "The Evening Post.") CHBISTCHURCH, This Day.'• "Did the recent reductions in workers' wages help the farmer?JMwas a.question asked at the annual conference of the North Canterbury branch of the New Zealand farmers' Union. The general view -was there had.been little, if any, material benefit to and F , the following remit was., passed and^ forwarded to-'the Dominion Conference for discussion:—"That,, as no material reduction, -in tho cost of production on farms has resulted from the reduction in, award; wages and Civil • Service salaries, 1i careful investigation should be instituted to ascertain where it is that economies, are being held up." In.an address Dr. I. Weston, the Farm Economist at Lincoln College, emphasised the .point that it -was -the fixed debt and* not' wages which was- the principal charge in the costing system. "SMALL PKOPOBTION." Mr. J. D. Sal! asked whether it could not be expected that production should benefit by a 10 per cent, or more cut made in the wages of the workers in the Civil Service and under awards. .Would that not bo so, even if alow in: action? Dr. Weston: "Perhaps, but as I pointed out, wages arc but a small proportion of the costing system." Mr. Hall: "Then, does it not appear that the- reductions were useless harassments to tho workers'?" Dr. Woston: "That is deflation. Costs do not drop, because taxation increases. There are remedies, but for tho present farmers should concentrate on getting costs down.". ■ ■