PARLIAMENT

Manawatu Standard, Volume LVI, Issue 121, 23 April 1936, Page 4

PARLIAMENT

A SPIRITED DEBATE

ARBITRATION LAW CHANGES ,

The House of Representatives, Yesterday afternoon, was engaged principally ill receiving Ministerial replies to a number of questions on a variety of' subjects. In the evening a keen debate took place on the Arbitration Act Amendment Bill, when the principal speakers included the Minister of Employment (Hon. H. T. Armstrong) and the fdrmer Minister,- Mr A. Hamilton.

THE ARBITRATION ACT

DIRECTIONS TO THE COURT,

CENTRALISED POWER.

SHORTER WORKING WEEK

Per Press Association

WELLINGTON, April 22.

In tlie House of Representatives tonight, when Hon. 11. T. Armstrong moved the committal of the Industrial Conciliation and Arbitration Amendment Bill, he said the Bill was one of the measures calculated to restore prosperity to the country. It was an honest attempt to institute a real system of conciliation and arbitration iti place of the mockery they had had during the last few years. Other countries than New Zealand would he interested in the legislation, . because it introduced a new principle. The Court would understand from the Bill the intention of the Legislature, and unless an employer could show that what was intended was impracticable the Court would abide by the Act. The Bill was calculated to give - working people a larger share than they had had in the past of that which their labour produced. New Zealand produced more wealth per head of the population perhaps than any other country in the world. Whatever degradation and poverty there was in other parts of the world there was no need for it in New Zealand. He claimed that the distress in recent years in New Zealand was largely man-made and the result of the” actions of the past Government. Many thousands of people to-day were without any protection at all, and it was a. state of affairs that should not be allowed to exist for another five minutes. ~ , The Bill, the Minister added, gave a direction to the Arbitration Court, after taking into consideration the condition of industry, to fix the basic wage on the basis of a man. his v lie and three children and, having decided that, the Court must not impose a lower wage on any man or woman of the community. The Court was asked to fix a 40-hour week as far as possible, not only in future, but m ex isting awards, and there was to be yo reduction in the earnings of the people. In most industries it could, and should, he applied and the onus would be on the employers to show in tlieii particu'ar business that the principle would not be' practicable. A FIVE-DAY WEEK.

EX-MINISTER ATTACKED.

...The Government wanted to see established as soon as possible a five-day week for as many people as possible, the Minister proceeded. When the employers had adopted the live-day week they never regretted it and lost nothing by it. Sil* Armstrong instanced the hours worked in other countries such as the United States and Britain. He quoted figures to show that not only could they work a 40-hour week in New Zealand, but they could work a 30-liour week in many industries and do it more cheaply than they could in U2U with a 44-hour week. Certainly that was done by machinery, but they should make every use'of machinery to reduce the hours of the workers. He said the value of production in factories for tlie year ended March, 1935, was £79,342,000 and wages were £13,244, 000, The total expenses incurred in running manufacturing concerns was £74,321,000, which meant that wages were only 18 per cent, of the value of the goods produced and only 17 per cent, of the cast of production. So it seemed to him perfectly clear that an increase in wages could not possibly increase the cost of production by more than 1.8 per cent. He reviewed the events leading up to the introduction of conciliation and arbitration of New Zealand in 1894 and the repeal of the compulsory clauses of the Act in 1932, since when workers- had had no protection under the arbitration law, and as a result there were tens of thousands of people, to-day who were working under conditions which should not he tolerated, and there was no reason why it should he allowed to continue. They were going back to a state of collective bargaining and giving either side a chance to refer disputes to the Arbitration Court. To-day there was more poverty in New Zealand than he could remember, simply because the then Government went'the wrong way about'tilings, the Minister added. The Bill not only restored arbitration as it existed a few years blit it laid down a system superior to anything they had before. There was nothing to fear in the Bill, and industry could stand up to the conditions it imposed. Most of the awards had lapsed, but they would.be automatically revived by the passing of the Bill'and nobody that desired an award would be refused it by the Court.

“PRINCIPLES OF COMMUNISM.”

“NOT REAL ARBITRATION.” Mr A. Hamilton, a former Minister of Labour, said it was not correct to 'say most awards had lapsed. More than 90 per cent of the awards which existed in 1932 were still in existence. Mr Armstrong : But they are of no use to the workers. Mr Hamilton said they were not returning to a' system of collective bargaining, but to Court decisions. They were not going back to real arbitration, which the Opposition would support, but he was of opinion that beiore long some of the unions would be defying the Court. Why should industries be compelled to work 40 hours a week when it was not suitable? Many industries were now working a 40-hour week, and that should be allowed to extend and not be forced on industries. High wages were to be forced on industries whether they could stand it or not. Mr Hamilton claimed that the conditions and wages of those working full time in New Zealand today compared favourably with similar workers anywhere in the British Empire. There were many employers in no better position than the workers, and the Bill would increase their burden. Costs in New Zealand were already too high, and the Bill would increase them. In the building industry the increase in costs would be Id to* 30 per cent. That would aftect rent and the people would have to pay more for homes. Manufacturers costs would be increased by from 7 to 9 per cent. Higher wages were often lost in increased costs, and it was just as well to keep costs down to a level with their competitors. The Bill would widen the gap between internal costs and external prices. The Bill would put industries more in a strait-jacket than they were to-day, which might

KING'S BIRTHDAY HOLIDAY,

NO CHANGE TO MONDAY

bo what Labour desired, but tbo Opposition thought it was riot' desirable.

Mr Hamilton considered New Zealand to-day was enjoying as good a standard of living as most countries. He contended that the basic wage should be fixed on an hourly as well as a weekly basis. The Bill did not say which it was to be. The Bill provided for Dominion unions, winch was hall'-way to the old scare of “one big union," and the Bill opened the way to centralising the unions’ power in Wellington, it would be a mighty power and might have serious consequences. He doubted if all the unions wanted compulsory arbitration. He thought voluntary arbitration should have been tried a little longer. He contended there should be a penalty provided in case a union did not obey an award. He criticised the compulsory preference to unionists, and said workers throughout New Zealand should note that, as it was .a very objectionable clause in the Bill and intruded too much on the personal lights and personal freedom of the workers. He claimed that there should be some exemption for managers and apprentices. Coming to the 40-hour week, Mr Hamilton asked the Minister to define the word “impracticable.” He said tlie provision might not be impracticable, but it would be very costly. The Bill gave the right to union officials to enter private homes, and that, he thought, was going too far. That right should be restricted to Labour Department inspectors. Mr Hamilton criticised the abolition of the limit on union entrance dues and entrance fees. The Bill showed the intentions of the Labour Government, and it would increase unemployment. Tin. Government was careless to the effects it would have on industry. It would draw labour from farms into towns, and it might yet rebound against the workers.

Mr R. McKeen said the attitude of Mr Hamilton was one of irresponsibility and gross misrepresentation. Mr McKeen said optional arbitration ’ was working so smoothly that within two years a hundred awards were smashed and workers were working under intolerable conditions and the number of apprentices had very greatly declined. There had been more breaches of awards in the last four or five years than at any time in the history of the country, and it was during that time Mr Hamilton was Minister of Labour. There was a time when New Zealand was regarded as progressive, but in recent years New Zealand had probably lagged behind other countries and tlie Government was endeavouring to improve the conditions of the workers; He said the average hours of factory workers to-day were 43 per week, and by a reduction to 40 hours employment would be found for 7019 workers. He referred to the increase of the exchange and the imposition of the sales tax, and said the \iresent Government had to clear up the muddling and maladministration of the past Government. Mr McKeen said that as a result of the Bill he was satisfied there would be greater harmony between the workers and employers, that there would be an improved standard of living in New Zealand and that the people would have more leisure. He would like to see the Bill go further, but was satisfied that later it would have to be consolidated.

Mr 4V. J. Poison said the Bill went further and deeper than the Minister and Mr McKeen had indicated in their speeches that night. He asked where the Government was; heading to with a measure of that kind. The Bill embodied principles of straight-out Communism. The Government in future would have all the powers of the Russian Comintern. The Bill was compulsory on one side—the employers. He said neither the employers nor the bulk of the people in New Zealand wanted the legislation, but they were going to have it forced upon them and it would he another shackle upon industry. The Bill would mean higher prices to the farming community, which would have ail adverse effect on it and would mean greater unemployment because the Government was ignoring the law of supply and demand. He said the basic wage was to be fixed on the average of' a man, his wife and three children, an average that did not exist. He thought when the Bill became law and the people realised what it meant it would be the end of the Labour Party.

DANGER OF RISING PRICES. Mr R. A. Wright said lie had alwayssupported compulsory arbitration and lie agreed with the shortening of hours. He feared that in practice tlie Court, would not use very much discretion when, considering whether a 40-hour week yva-s practicable unless it could be shown that industry would be almost ruined by its application. He said tlie adoption of the 40-hour week in the Cpvernhient service alone would mean an addition of_£300,00() per year and would mean an increase in railway fares, freights and other things, so tlie cost of living would be increased unless there- wits some way of raising money, about which he knew nothing. He was afraid the Rill would mean rising prices, which would be followed by an increase in wages and that in turn would mean still higher prices, so they would have the old circle again.

The debate was adjourned and the House rose at 10.30.

Mr J. Eobei'tson asked the Minister of Internal Affairs (Hon. W. E. Parry) in the House to-day whether, as tlie birthday of the King this year falls on Tuesday, June 23, the Government will give consideration to celebrating the event by declaring Monday, June 22, a Dominion holiday as such a change would enable more people to enjoy the holiday. Mr Parry replied that it had always been the practice in New Zealand, except, when the birthday fell on a Sunday, to observe the Sovereign’s birthday on the actual date, and it was not, considered desirable at the present time to make a change.

;;VARIETY_::.OF TOPICS.

REPLIES TO QUESTIONS. CONTROL OF FLOODED RIVERS. The House to-day discussed written Ministerial answers to members’ questions. Replying to a question by Mr T. D. Burnett regarding the control of rivers to control flooding, Hon. R. Semple, Minister of Public Works, said the Government were fully alive to the necessity of better river control and protection from floods throughout the country and intended to take steps to investigate this subject in future. Tlie collecting of proper data concerning rainfall precipitation within river drainage areas, flood flow of rivers and the effect upon lands adjacent to rivers had not received the consideration it should have had. and much work must now be done to see that this most important investigation was properly carried out. ENTRANCE TO PUBLIC SERVICE. Dr. 81.B 1 . G. McMillan had asked the Prime Minister whether he would consider raising the maximum age of entry to various departments of the Public Service for a limited period as was done after the Great War.

Mr Savage replied that in the departments under the control of the Public Service Commissioner the age limit for appointment to a cadetship was in 1932 extended from 19 to 21 years in the'case of candidates who had passed the University entrance examination, and it was not considered practicable to extend the a.ge in the case of cadets beyond 21. It was the practice where suitable opportunities arose to appoint candidates with full degree qualifications at higher ages. The age limit of cadets for entrance to the railway service had been raised and cadets were now engaged up to the age of 19. Apprentices’ ages had bccii increased to it maximum of 17 years of ago. It was considered what had already been done reasonably met the altered conditions arising out of the depression and that to further extend the age limits would have the effect-of imposing hardship on applicants for employment in Government departments who were already qualified under the existing age schedule. POULTRY PRICE GUARANTEE. Mr A. C. A. Sexton had asked the Prime Minister, whether, in view of the very large increase in the cost of poultry food, the Government would institute a payable guaranteed price for poultry farmers’ products. Mr Savage replied that investigations for the purpose of determining tlie basis of guaranteed prices for primary products were proceeding, and as soon as the necessary information was available negotiations would be initiated with a view to the introduction of procedure to ensure it reasonable price lor commercial poultry raisers. ELECTIVE UPPER HOUSE.

Mr H. S. S. Kyle had asked the Prime Minister whether he intended to put into operation the Act _ at present on the Statute Book which provided for the election of members of the Legislative Council. Mr .Savage replied that it was not the intention of the Government at the present time to put into operation the provisions of the Act referred to. OVERSEAS SALES OE PRODUCE.

Replying to a question by Mr W. P. Endean, who had asked whether the Government lias sold or agreed' to sell butter to the Co-operative Wholesale Society of England or any cooperative society there, Hon. W. Lae Martin, Minister of Agriculture, said negotiations were proceeding in London for the purpose of determining the best method to be followed in connection with the marketing policy associated with guaranteed prices for the dairy industry. Negotiations had not yet been finalised. The Government had met representatives of the Co-operative Wholesale Society and hoped to extend the sales to the society through the usual channels. CONTROL OF RIPARIAN RIGHTS.

Replying to Mr W. J. Lyon, Hon. P. Eraser said the Government viewed with grave concern the exercise in certain directions of the riparian rights of some owners of land adjacent to lakes, rivers and beaches whereby 'the public interest was deirimentally affected. It proposed to take the whole question into consideration with the intention, where practicable, of vesting in or bringing under the control ol the State such riparian rights as would make it possible to make accessible to the people of the Dominion all places of scenic beauty arid recreational value from which they were at present excluded with, of course, necessary safeguards for tlie protection of forest and other areas which might in certain circumstances be endangered. Before anything effective could be done throughout “the Dominion there would have to be an extensive survey of the position in respect to existing rights and the area affected by them. THE SPECIAL POLICE I'ORCE. Mr Lyon had asked the Minister in charge of the Police Department whether the special police force had ben disbanded; if not, whether it was his intention that this force shad be disbanded. ■ ■ .. Mr Eraser replied that the police force reserve had not been disbanded, but recruiting for it had been suspended and the question oi retaining the services oi the present members of the reserve was under consideratMlNlSTEß AND COAL IMPORTS. Mr AV. J- Poison had asked the Prime Minister whether, having regard to the policy disclosed by the Government as to members of official boards who had outside business interests, he would apply the same tape measure to Cabinet and particularly to the Mines Department, the Minister in charge of which was largely interested m the sale of New Zealand coal. He added that the Minister in question had recently announced that the importation of Australian coal would be prohibited and presumably this would increase the business of the New Zealand coal agents. Mr Savage replied that Ministers of the Crown had been appointed because of their experience and knowledge of the problems with which they would be called upon to deal. The Minister of Mines was especially qualified in that respect and could be depended upon to carry out faithfully the policy of the Government. It was not the intention of the Government to destroy the constitutional right that had been extended to Ministers since the inception of self-govornrilent in New Zealand. justices oFThe peace.

NEW LIST TO BE'ISSUED. An. announcement that a new list of Justices of the Peace is to be issued almost immediately was made by the Minister of Justice (Hon. H. G. It. Mason) in reply to a question asked by Mr It. A. Wright in the House of Representatives yesterday. The Minister said it had been customary to issue a list of appointments to the Commission of the Peace once a year. A list containing 380 names was issued last May. The commission now comprised approximately 6000 names. It was at present being revised, and a supplementa.ry list had been compiled of persons, mainly in remote localities, whoso appointment had been urged on the ground of public convenience, and this would be issued almost immediately.