SEARCH FOR ECONOMIES.

New Zealand Herald, Volume LXVIII, Issue 20968, 3 September 1931, Page 11

SEARCH FOR ECONOMIES.

MEETING LOW PRICES.

COMMERCIAL VIEWPOINTS.

WAGES CUT SUGGESTIONS

PROBLEMS FACING COMMITTEE

[BY TELEGRAPH—SPECIAL REPORTER.] WELLINGTON, Wednesday.

The special Economy Committee of Parliament', continuing its scrutiny of the public finances of New Zealand, sat steadily taking evidence at both sessions to-day, when representatives of manufacturing, employers' and labour interests were heard.

"Business as usual," was the only announcement made by the Prime Minister, Rt. Hon. G. W. Forbes, at the conclusion of the sittings thie evening. The coni-

mittee, he said, had heard Mr. J. T. Spears, president of the New Zealand Manufacturers' Federation, and Mr. F. C. Campbell, president of the Wellington Manufacturers' Association, as well as Messrs. T. O. Bishop and A. C. Mitchell, secretary and president respectively of the Employers' Federation. Toward the end of the afternoon, Mr. F. D. Cornwell gave evidence on behalf of the Trades and Labour Council, and as his testimony is unfinished, he will return on Monday in company with Mr. J. Roberts, who will speak for the "Alliance of Labour. Wages and Protection. The evidence of witnesses from commercial and manufacturing interests has been closely questioned' 1 by Labour members of the committee, particularly those witnesses who, in urging a reduction in overhead costs throughout industry, advocated further drastic economies among wage-earners. Against this, the manufacturers pressed upon the committee the need for some attention being given to added protection for New Zealand industries of a certain description, with the object of stimulating a demand for labour and ultimately for locally-manufactured goods. Both sides of the wage-cut question were presented when Mr. Bishop, representing the employers, and Mr. Cornwell, representing wage-earners, were heard in quick succession. To-morrow, Mr. W. A. lorns, chairman of the Dairy Board, and one representative of the National Dairy Association will give the views of the dairying industry. Mr. W. G'oodfellow, managing director of the New Zealand Co-operative Dairy Company, Limited, was to have appeared, but he was unable to come, and will probably give evidence before the committee on Monday. The evidence of the dairy industry will to som? extent coincide with that given by the sheepowners, in so far as the seriousness of low prices has made it difficult for many dairy farmers to meet their mortgage obligations and carry on until prices improve. Greater Sacrifice Likely. As evidence taking will be complete next week members of the committee are turning their attention privately to some method of handling the financial situation, not only in the light of recasting the current year's Budget, but with a view to stabilising New Zealand finances for some time to come. Among the suggestions that have been made, and which are understood to he receiving some consideration. is that of a further 5 per cent, cut in rivil servants' salaries, and a further review of Arbitration Court awards, particularly as they affect certain sections of the community. These proposals, if brought before the committee to discuss, will assuredly be opposed by the Labour members, with one of two results. One is that Labour will split the committee and drive the United and Keform members into a common camp for the purpose of pressing economies through. The other is that they might sit through the whole deliberations and present a. minority report to the House. It appears certain that whatever recommendations are made must he of an economy nature, and a greater sacrifice will be asked of the people in bringing the country through the depression.