WAGES IN AUSTRALIA.

New Zealand Herald, Volume LXVII, Issue 20462, 14 January 1930, Page 10

WAGES IN AUSTRALIA.

REDUCTION INEVITABLE. LEGISLATOR'S OPINION. The high costs of production have been almost solely responsible for the present condition of depression in Australian industry, according to Mr. E. L. Sanders, Nationalist member for Willoughby in the New South Wales Legislative Assembly, who arrived at Auckland by the Aorangi yesterday on a short holiday visit. Mr. Sanders said that the coal' strike naturally continued to exert a crippling influence on Ne\V South Wales trade. The situation was extremely difficult and the prospects of an early settlement were not bright.

" The strike was a direct outcome of an attempt to enforce' lower wages on the miners." Mr. Sanders said. "However, the matter really goes further than that. It is practically a test case for the reduction of wages throughout New South Wales. The workers know that if the miners' wages are reduced there will be a reduction all round and therefore they are contributing large sums for the relief of the strikers.

"My own opinion is that the working man realises that wages must come down. The cost of production in practically eveiy industry is far too high for them to be maintained at the present level. However, the working man cannot be given any guarantee that, with a reduction in wages, there will be an accompany, ing reduction in the cost of living. This is practically the root of the trouble. •

" It is difficult to know exactly to what extent the high protective tariff has been a contributing factor. I have no doubt that it has increased the cost of some lines, but then again' it is an unfortunate fact that some of the local manufacturers make no attempt to cut overhead expenses and reduce the prices of their own goods." Mr. Sanders, who. is accompanied by his wife, will make a short tour of the North Island before his return to Sydney on January 27. His wife''will visit her sister, Mrs. A. Barrett Jameson, of Papatoctoe.