Trades Council Sees “Red Light" In Prices

Greymouth Evening Star, 28 April 1949, Page 10

Trades Council Sees “Red Light" In Prices

(P.A.) WELLINGTON, April 27. “The trend must be for the prices of primary products to recede,” said the president of the Wellington Trades Council (Mr F. P. Walsh) and the secretary (Mr F. A. Warner) in the report presented on behalf of the management committee of the council at the annual meeting this evening. ■ After referring to a ’ decline in wheat and wool prices, the report said there was further evidence that in one of New Zealand’s principal primary industries the country’s receipts were falling considerably short of the amount to be paid to the producer.' “This is.the red light and the signal to which we must give serious heed,” added the report. If New Zealand were to meet falling prices for its primary products 'stabilisation would become of greater and not of less importance, said the report. It continued to be the key to the maintenance of New Zealand standards. . , . The effects of the war in producing inflationary pressures through shortages of goods and services and increases in purchasing power were becoming less apparent with each year, but until New Zealand’s economy and the economy of the world as a whole had returned to normal stability, then New Zealand standards would have to be assured through some measure of control. „ “Stabilisation Major Success “The country and the worker benefited enormously from stabilisa firn since its inception to a degree not approached in any other country, said the report. “The policy has been a major success and continuance wi* he strongly supported by thinkm o workers, at least until economic conditions become more normal. “We must remember, however, that much cf our present prosperity is due to the misfortunes of peoples in other countries, who, because of the ravages of war upon their own productive economies, were forced to pay pnmaryproducing countries prices which, m relation to those ruling in 1938-39, can in many cases be described as fabulous. “It must not be thought that these countries can or will for ever go on paying these prices. Already there are indications that their own productive resources are rallying in many cases back to pre-war levels and the trend must be for prices of primary products to recede. There has already been a sharp decline in wheat prices and recent wool sales in this country have shown price declines ranging up to 25 per cent, compared with those ruling at earlier sales. “Stabilisation has so far been more effective in practice here than in any other country in the world. Workers along with all sections of our community must give serious thought to the problems our stabilisation policy must face in the coming year.” “M'ust Produce More”

Later in the report, Mr Walsh said that any hopes of advances in, indeed of maintaining, New Zealand’s present, standards were dependent upon one single factor, the productivity of labour applied to resources. An increase in the productivity of the labour force could bring an increase in standards. “Without increased productivity our (standards cannot advance; indeed they may fail,’.’ said the report. “While improvements in the productivity of labour we apply are dependent to some txtent upon employers as well as workers, it is upon workers that improvements ultimately depend. It is therefore of the utmost importance in the coming year, with signs on the horizon of a reduction in the prices we can hope to receive for pur primary products, that our workers should squarely face their responsibilities and give of their utmost to see that their labour is applied without stint in the production of the maximum wealth which this country is capable of producing. “Only by producing more can workers ensure that their share , will be larger. This is the primary fact we must face in the coming year.”