FURTHER WAGE CUT

Evening Post, Volume CXVI, Issue 33, 8 August 1933, Page 6

FURTHER WAGE CUT

COUNCIL DECLINES

NOT SOUND ECONOMICALLY

(By Tdegriph.) (Special to the "Evtntnf Post.") NEW PLYMOUTH, August 7. "Havo tho wages cuts achieved all that it was intended they should achieve?" asked Councillor P. E. Stainton tonight when tho New Plymouth Borough Council discussed and rejected a proposal to' impose a further 10 per cent, (flit on the borough staff. "I am being forced to the conclusion,'' proceeded Mr. Stainton, f' tliat the -wages cuts are having a boonlerang' effect, and "that furthor reductions will have an effefct1 opposite to that intended. Probably the one statement that was repeated by all the delegates at the World Conference was that prices must be raised. The tendency seems to be to leave the adjusting of our troubles to the Government, the World_ Conference, or anyone rige, but we ourselves, individually an-. ->Uectively, certainly have our part perform in the process of readjustment. What have we as a council yet done as representatives of the people to, help towards treadjustment? If it is accepted that prices must be raised before recovery will take place, is that consistent with reducing wages? Prices are governed by supply and demand, and with' reduced pur-1 chasing power there must be reduced demand or reduced prices. It is significant that various local bodies in New. Zealand are already restoring cuts. We have to try to lift ourselves out of the depression by eliminating j waste,' profiting; by our experience, and encouraging a' return of confidence in place of ; the."'depression shoc # k' that exists at present. The ratepayer owning houses suffers from wages cuts through reduction or loss of rent. Ask the tradespeople how reduced j wages havo affected them. The tramway department 's revenue indicates that the effect of wages reductions is an intmedi-. ate falling off following the cuts. .Considering the; very healthy state of the borough finances, would ii be fair to the ratepayers or the employees,' or otherwise justifiable, to impose further wages cuts?" asked Mr. Stainton. The council's answer was to reject the proposal by six votes to three, only the committee of three which prepared; the proposals voting,'for reduction.