LOWER WAGES OPPOSED

Hawera Star, Volume L, 13 February 1931, Page 5

LOWER WAGES OPPOSED

VIEWS OF LABOUR COUNCIL FIGHTING THE DEPRESSION A REMEDY SUGGESTED. , liy jvi^jjraph —i'reßß AusuoiaUou..) WiaLLINGTON, Feb. 12. A strong protest against tiny proposal to reduce wages was made to-day by a deputation from the Wellington Trades and .Labour Council to the lit. Hon. O. \V. Forbes, in introducing the deputation Mr W. .Nash, M.P., said it wages w ere reduced the problem would be just- as great as before. The chief reason for the crisis was because production had outrun consumption. Deduction of wages would only further decrease consumption.

Mr J. Tucker, secretary of the Storemen’s Union, said they appreciated the task that faced the Government and were afraid the Government might listen to the monied and propertied class to the detriment of the workers. If the Government gave the Arbitration Court power to reduce wages it would amount to a breach of contract with the workers and would bo as bad, if not worse, than repudiation of tho national debt. Any reduction of wages should be on the cost of living basis. That basis had been good enough when prices were soaring and should be good enough under present conditions. Mr W. Maddison, of the Carpenters and Joiners’ said falling wages adversely affected the state of commerce more than any other economic phenomenon. The farmer -would benefit very little from wage reduction in the secondary industries as the reduction would be so small it would, not be passed on. In addition much of the farmers’ products could not be exported, and if wages came down lie would have to face a., smaller home market. The fanner’s real difficulty was due to heavy interest charges consequent on inflated land values. The Government should see that 1 per cent, of interest over 6 per cent, was placed in a pool for the purpose of relieving farmers in difficulties. There was over £30,000,000 worth of mortgages in New Zealand, and if the Government took the action suggested land values would be deflated. The condition of the country could be met by other means than wage reduction, but in the event of the Government deciding to reduce wages interest and rent should, be reduced also so that the present standard of living could be maintained. They also asked that wheat prices be brought into line with the world parity.

Mr A. Parlane, secretary of .the Drivers’ Union, said the workers considered any wage reductions would be most unreasonable. Workers had) suffered reductions during some of th.e most prosperous yeans the country hasd had. The Prime Minister said reduction of wages was undoubtedly a serious matter, but he wanted them to understand his position. Ever since he took office he had been faced with the necessity of balancing the Budget. Some little time ago he made a statement that il they continued on the way they were going they would be faced with a deficit of £3,000,000 and since then there had l>een a further serious drop in the prices of produce. As a result the farmer was right up against it, and it was very probable many people who had invested all their savings in broad acres, once a very safe security, would not receive their interest. Manufacturers, too, were feeling the pinch ; in fact, he did not think there was one section of the community that was not feeling the economic pressure. It was no use saying the country could go on in the same old way; some adjustment was absolutely essential.

The Avhole matter Avas fraught Avith difficulty, and he Avas calling Parliament together to thrash it out and endeavour to reach a solution. While he AA'as Prime Minister he recognised it Avas liis responsibility to suggest means of OA-ereoming the difficulty, and he intended to accept the responsibility. He intended to maintain the finances of the country in a sound position and to balance the Budget. He wanted to make it plain that in reaching this decision he AA’as not swayed by any section ofl the community. He had heard the case presented by the farmers and the employers generally, and before mating any pronouncement lie wanted ±o hear the case of the AvorJeers. He had noAV had the opportunity and AA’ould decide upon a course. The Government would take that course which Avould bo fair to all.