LIVING STANDARDS

Evening Post, Volume CXIV, Issue 104, 29 October 1932, Page 14

LIVING STANDARDS

BRITAIN AND N.Z.

ON DIFFERENT LEVELS

'ADJUSTMENT NECESSARY

Some straight speaking was indulged an by Mr. T. 0. Bishop, the employers' advocate, when the dispute in the engineering industry was continued before the Conciliation Commissioner, Mr. "W. Newton, this morning. Mr. Bishop said that it was impossible for New Zealand to maintain permanently a higher standard of living than obtained in Great Britain, the country New Zealand had to rely upon to buy her products.

Mr. Bishop's remarks followed a aiscussion on the reason for manufacturing costs being so much cheaper in Britain than in New Zealand. The employees wished to have inserted in the new award a clause classifying the workers into the various sections of the industry, and preventing a member of one section doing the work of another section.

Claiming that this would raise manufacturing costs in the Dominion Mr G. A. Paseoe'(Christchurch), one of the employers' assessors, said it was in the interests of all concerned to have as much work as possible done in the Dominion His firm had submitted the lowest New Zealand tender for a Government contract, but had been underOld by a British firm, and many thousands of pounds' worth of work had gone out of the Dominion. Had it not been for the wages his firm was compelled to pay it would have been able to secure the contract. REDUCING STANDING COSTS. "I am always interested to hear you people talking about bringing down standing costs," said Mr. Bishop in reply to a contention by the employees that the workers were able to accept lower wages in Britain because their cost of living was lower, and that the employers should help to reduce standing costs. ".Every time we try to do it you put a concrete wall up against us. Wages play a very big part in all standing costs, and you< always fight against wages being brought down." Referring to the high retail cost of coal as compared with the cost at the mines, Mr. Bishop mentioned the transportation and'other costs which had to be taken into consideration. In practically every instance wages were involved. "Another point you entirely overlook," continued Mr. Bishop, "is that we are not a self-supporting community, and we have no chance to become a self-supporting community. "We are the least self-supporting community in the world. We are exporting and importing a larger proportion of our goods than any other country. Our principal market is in the very country where you say wages are too low. "We cannot only-buy more cheaply there, but we have to sell our goods there. BORROWING AND LENDING. "If you were lending money to someone who was living more' expensively than you - were you would begin to wonder whetheryou were going to get your money back, and that is what this country has been doing," he. said. "We have been abl» to carry on in the past because we have borrowed to make up the .difference, but it does not seem to me practicable or possible that we can continue to maintain a higher standard than the country to which we sell our products. • If we all work together the adjustment can be brought about with less hardship than would otherwise be'the ease, but don't think it can be avoided."

Mr. A. Black (Wellington), one of the employees' assessors, said he- did not agree with Mr. Bishop's theory. If wages had not been reduced in Britain New Zealand would still be securing good prices for its products. Mi-. Bishop said he was quite prepared to admit there was something wrong with the social system which had brought about the present state of affairs, but that did not alter the domestic position in New Zealand. New Zealand was absolutely dependent upon overseas markets for.the consumption of a large proportion of its products. "If prices do not rise within the next twelve months we are done," said Mr. Bishop. "We are all hoping, as you are, that there will be a rise in prices, but unfortunately there is no reason to believe that it is coming quickly. I had been hoping that when the. new export season commenced things would improve, but apparently there is not much to be hop_ejl for this year." He pointed out that wool had fallen Id per pound as compared with this time last year, and fat lambs, wh;ch had been the only source of profit to many farmers, had dropped from 8 l-Bd\per pound to _ 4 7-8 d and 5d per pound. There were just enough bright spots on the horizon, however, to encourage the employers to cany on.