Wages Of N.Z. Workers

Northern Advocate, 20 July 1949, Page 7

Wages Of N.Z. Workers

WELLINGTON, Wed fP.A.>—lmprovement in the workers' relative posit ion was shown by figures quoted by the Minister of Industries and Commerce (Mr Norchneyer) in his speech in the Address-in-Reply debate in the House of Representatives last night. Mr Nordmeyer said it had been alleged last year in certain quarters that the workers’ share of the national income had fallen to an inequitable level, justifying heavy wage increases. Official statistics to be published soon—he hoped before the Budget appeared—would show that wrong inferences had been drawn last year and that the workers' relative position had improved last year. Account must be taken of social security payments, for many receiving benefits would still be wage earners if. as in earlier years, no benefits were available to them. In the year ended March 31 las l ., continued the Minister, wage and salary earners received £226,000.000. compared with £210.600.000 in 1047-40. Pay and allowances for the armed services were £4,000,000, compared with £6,400,000 the previous year. Other figures were: Social security benefits, £39,500.000 (£37,600.000); rental value of owner-occupied houses. £10,000.000 (£9.500.000); personal income, £132.500,000 (£127.000,000); companv income before distribution, £50,000,000 (£53,700.000).

When these figures were converted into residual personal incomes after direct taxation had been charged, the change during the last year was stiU more striking. Wage and salary earners paid £27,100,000 in direct taxation, leaving £198,900,000, compared with £186,600.000 in 1947-48. Other figures were: Armed services, pay and allowances, £3.500,000 (£6,100,000); social security (not taxed), £39,500,000 (£37,600.000). ■ Thus the total income of wages and salary earners, members of the armed services, and social security beneficiaries for the year ended March 31 was £241.900.000 (£229.800.000).

Other personal income showed little change at £107,400,000 (£107,300,000), but company income after tax was deducted declined to £21.600.000 (£32.500,000). PERCENTAGES. Expressed in percentage's, wage and salary earners received in the year ended March 31 last 53.6 per cent of (he net total private disposable income, compared with 50.4 per cent the previous year. ■ • Other percentages were: Members of the armed forces, 0.9 per cent (1.6 per cent); social security beneficiaries, 10.7 (10.2).

These groups together received 65.2 per cent of the total private income, compared with 62.6 per cent the previous yea)'.

It must not be forgotten that the recent wage increases would increase both the aggregate and percentage incomes of these groups during the present year.

Mr Nordmeyer said it must be fully conceded that production figures had not kept pace with the money increase. .

PRODUCTION FIGURES This year showed an upward tendency in the value and volume of pro-, duction. In 1938-39 the value of farm production was £81.900,000, and last year it was £155,000,000. or, expressed as index percentages, was 89 per cent more in value and 13 per cent in volume. Factory production, which was £30.500,000 in 1933-39, rose to £70.000,000 in 1948-49. an increase of 130 per cent, in value and 50 per cent in volume.

The overall production figures were £136.000.000 in 1938-39 and £265.000,000 last year, or an increase of 95 per cent in value and 20 per cent in volume.

"The gap between spending power on the one hand and the volume and value of production on the other is narrowing,” said the Minister, who added that highly dangerous as the inflationary position was two years ago. it had since waned.