RESTORATION OF CUTS

Evening Post, Volume CXXIV, Issue 69, 18 September 1937, Page 11

RESTORATION OF CUTS

GOVERNMENT'S CLAIM

COMMENT BY MR. C. A. L.

TREADWELL

In the course of an address at Rongotai last night on behalf of the National Party, Mr. C. A. L. Tread well pointed out that the Government was continually claiming credit for having restored wage cuts, pension cuts, etc. No one, he said, denied that the Government had done these things, and it was entitled to credit for having made the restorations. There was nothing very marvellous about that. It would be recognised that it had been possible to do this solely because of the increase in the prices .^received for our primary produce overseas, and the prosperity brought about as a result. It would be remembered, too, that the National Party, in its election manifesto of 1935, promised to restore the cuts, and had already made a start in that direction. Another contributing cause was the buoyant state in which the former Finance Minister (the Rt. Hon. J. G. Coates) had left the country's finances when he relinquished office.

But. said Mr. Treadwell, any benefits that might have resulted from the restoration of the cuts had been cancelled out or minimised by increasing costs due entirely to the Govrehment's own action. ■ It was the height of folly to increase wages and reduce the hours of work simultaneously. The introduction of the 40-hour weekshould have been held over for a short time till the country wag able to settle down to the new conditions.

It had been frequently alleged by Labour speakers, for propaganda purposes, that the National Party, if returned to power, would endeavour to reduce costs by cutting wages. That was untrue, for costs could be reduced without that. All that need be done would be to remove from industry the harassing restrictions placed on it by the Government's continuous surrender to the trade union bosses. Government expenditure, too, should be reduced with regard to the enormous amount of uneconomic works now in hand. THE VICIOUS CIKCLE. As further restrictions were placed on industry the costs naturally rose, these being followed by demands from the unions for. still higher wages. As the union secretary was nothing if not thorough, these demands were accompanied by further requests for more restrictions; for example, the trado union bosses were now to be heard talking about a 38-hour week. Naturally the farmers who had no means of passing on costs, and under the guaranteed price were not receiving an adequate return for their produce, demanded relief by way of a compensated price. When this request was first put forward Mr. Savage announced his inability to understand what was meant. There was no need I for Mr. Savage's wonder or ignorance What was intended was merely this: the farmer, finding costs rising against him, demanded to be treated in the same way as the trade unionist and other sections of the community He asked either that his costs should be reduced, or that the price he should receive for his produce should be increased to cover those costs. Could anyone say that this demand was not just and inequitable?