A MINIMUM WAGE.

New Zealand Herald, Volume LXIV, Issue 19730, 1 September 1927, Page 11

A MINIMUM WAGE.

LABOUR MEMBER'S SCHEME. WEEKLY RATE OF FIVE POUNDS. BILL REJECTED BY HOUSE. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Wednesday. The second reading of the Minimum Wage Bill was moved by Mr. J. McCombs (Lyttelton) in the House this evening. Mr. McCombs said the measure proposed a minimum below which the Arbitration Court could not fix wages. The minimum proposed was £1 daily for the casual adult unskilled worker or £5 weekly. The principle of fixing a minimum wage was not new, as under tho Liberal Government in Britain it was J applied in the case of apprentices and employees in shops and offices. The Conservative Party of that time strongly opposed the measure, but so successful bad it proved in operation that in 1922 the Minister of Labour in the Conservative Government re-enacted its provisions. Mr. McCombs contended the great need was for greater purchasing power through a higher stabilised wage. Thus a demand for goods would be created and production would necessarily bo increased as a result. Ho quoted American political writers in support of his contentions, which, ho said, simply meant that the stream of trade would be permitted to flow freely. The idea was not socialistic; it simply pointed the road to prosperity to business men and industrialists. Money received in wages was spent more readily than money received in dividends, and so was at .once applied to increasing production. "Theory Founded on Books." The Minister of Labour, Hon. G. J. Anderson, said the bill was evidence of the futility of a theory founded on books. This theory had not been put in practice, so far as he knew, so far as agricultural production was concerned. In New Zealand it was impossible to' apply the proposed minimum. He did not think it would be possible to pay it and sell New Zealand's products at a profit in the world markets. Henry Ford had been quoted, but Mr. McCombs did not mention that Ford required full value for the wages he paid. The Minister said every man was entitled to full value for his labour. The Leader of the Opposition, Mr. H. E. Holland, said the last statement was extremely socialistic in sentiment and was surprising, coming from such a source. Mr. Holland asked if any man couid maintain a wife and family on less than £5 a week in anything like decency. Mr. Holland said he could not agree with the Minister's contention that New Zealand wages could not be increased while she had to compete with countries whose primary industries were carried on by low-paid labour. The International Labour Office of the League of Nations was established to help to improve the wages in backward countries, but New Zealand declined to be represented and assist in this task. Effect on Producers. The Minister of Lands, Hon. A. D. McLeod, asked," if it were true that high wages brought about all-round prosperity wbv should they stop at £1 a day? Farmers in America had to pay lugh wages to their workers as a result of the higli wages in the cities, brought about by fictitious conditions. In the case of New Zealand products such as wool, we should have to increase our internal consumption by 200 to 300 per cent, to produce any real benefit. The Minister quoted figures given by American economists showing how increased wages had reduced farmers' returns by well on to 50 per cent. - Mr. W. E. Parry (Auckland Central) said the Arbitration Court should not bo abolished but developed. He combated the idea that the present depression was caused by workers not producing enough. His experience was that New Zealand workers were just as efficient and industrious as workers in any part of the world, and he resented statements to the contrary. On a division the second reading was defeated by 47 votes to 8. HIGHER HOUSE RENTALS. POSITION IN WELLINGTON. [BS TELEGRAPH. —SPECIAL REPORTER. ] WELLINGTON, Wednesday. The question of exorbitant rents was raised in the House to-day by Mr. It. McKeen (Wellingt6n South), who drew the attention of the Minister of Labour, Hon. G. J. Anderson, to statements on the subject made at the last meeting of the Social Welfare Committee of the Wellington Hospital Board. The member asked what action the Minister proposed to take to prevent the charging of excessive rentals. Mr. Anderson replied that, as the member knew, the House had passed the Rent Restriction Continuance Bill and had sent it on to the Legislative Council, but nothing had been heard 6f it since. "Whatever is done," he added, "will have to be done by that Chamber. Under the law as it still exists tenants who feel aggrieved with the rentals charged can go to the Labour Department and proceedings, if tho circumstances justify them, will be taken. Of course, the law expires at the end of the year. COMPENSATION CLAIM. RESIDENT OF AUCKLAND. [BY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Wednesday John James Meikle. of Auckland, again petitioned Parliament for compensation for alleged wrongful imprisonment, and the committee to which the petition was referred recommended that it be referred to the Government for favourable consideration. When the report was presented in the House to-day several members spoke in favour of the petition, stating petitioner was over 80 years of age. It was also stated Meiklo had already received £2500 from the Government, but one member remarked that a good deal of this had been spent by petitioner in endeavouring to prove his innocence. The report was adopted. LOSSES BY FIRE. STATISTICS TO BE OBTAINED. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Wednesday. The great loss to the Dominion caused bv fire was referred to in the House today. Replying to a question the Minister in charge of the State Fire Insurance Department, Hon. W. Nosworthy, said the seriousness of the waste by fire in the Dominion was recognised. Particulars regarding the origins and causes of all fires in the Dominion for the past three years had been supplied by the State Fire and other fire insurance offices to the Government Statistician, who would have them analysed and scheduled. The information would be published when available.