THE New Zealand Herald AND DAILY SOUTHERN CROSS THURSDAY, JANUARY 16, 1936 CO-OPTING EXPERIENCE

New Zealand Herald, Volume LXXIII, Issue 22318, 16 January 1936, Page 8

THE New Zealand Herald AND DAILY SOUTHERN CROSS THURSDAY, JANUARY 16, 1936 CO-OPTING EXPERIENCE

Before taking policy decisions, the new Government is showing a laudable disposition to talk over particular problems with those most closely in touch with them. Thus the Dairy Board has been called into consultation on markets. In the near future employers' and workers' representatives aro to meet Mr. Armstrong to discuss labour questions, with particular reference to working hours and the arbitration system. Similarly Mr. Semple intends to call together representatives of all transport interests in order to obtain a thorough discussion of their problems in advance of possible legislative reforms. This inclination to get into touch with those possessing practical working knowledge is in the right direction. It is in harmony with one of Mr. Savage's first undertakings after the general election, that his Government would not be doctrinaire, but would keep in touch with realities. From the beginning, also, Mr. Savage has emphasised that the Government could not succeed without public co-operation. These conferences should be useful in securing it. No plan, however perfect it may appear on paper, but is the better of the scrutiny and suggestions of those who must conform to it and who can. generally contribute something of value out of their everyday experience. After all. everyone would welcome an improved social and economic order: the difficulty is to discover methods making for unbroken and real progress. The best way to achieve so desirable a result is by pooling the common fund of experience, and, in special cases, to call in or co-opt those who know the business in hand.

To take an instance, Mr. Armstrong personally favours the institution of a 40-hour week. If the Government concurred, it would be possible to enact the shorter working week by legislation, regardless of the consequences. The Minister has wisely decided, however, to obtain the views of employers and Workers at a joint conference. There can be no doubt that such prior consideration is necessary and should prove helpful in bringing out the many implications of Mr. Armstrong's proposal. The fact is that, not only employers and workers, but everyone will be affected by the increased labour costs involved in the adoption of shorter hours. The increase must be added to consumers' goods and production costs. Producers will be especially affected because, as they must still sell the bulk of their output in world markets under keen competition, they will not be able to shift this new charge. Employers will be required to work out new problems of organisation and will often find that it will pay to replace men with machines. Hence a change that holds a superficial promise of increasing employment may before long intensify unemployment. That aspect cannot be overlooked by the workers themselves. Their labour is hired because it pays to do so, and they will naturally examine very carefully a proposal that may place their services at a discount. Those who are engaged in manufactures or businesses that at present are barely withstanding competition may well be chary of any addition to the costs of the concerns employing them. Coal, for instance, ie already fighting a losing battle against oil and hydro-electricity. Labour costs, in mining and transport, are the principal factors in its price, and their increase would be a further blow to a declining trade. In any case, if there were a choice, workers might prefer higher wages to shorter hours. Mr. Armstrong should be better informed on the sharp points—only a few have been touched on—raised by his proposal after conferring with those directly affected.

The same applies to transport. Attempts are being made at coordination of the various forms, but, as more than one licensing authority has pointed out, effective regulation applies only to road traffic. New Zealand has spent large sums on railways and harbours as well as roads, and even now is building up an elaborate ground organisation for air services. How can these four transport agencies, by land, sea and air, be best organised to serve national requirements with efficiency and economy? Mr. Semple is taking the most promising way of finding the answer by calling a conference of all transport interests. The deliberations will be the more complete if public works policy, which includes road, railway and aerodrome construction, is considered in relation to modern transport trends. A great deal of the Government's policy will depend, of course, on finance. In this crucial department, therefore, it would seem especially desirable to call in those skilled in the handling of currency and credit. Beforo the election Mr. Savage stated more than once that he would look to the experts, the bankers, to carry out his monetary measures. That would certainly seem to be the natural and sensible thing to do, and it would be just as natural to call them into consultation on the formulation of the policy they will be expected to put into operation. The decision and the responsibility would still necessarily rest with the Government. But it will be reassuring to the public if, with money as with other things, the Government calls on experience to discuss and perhaps work upon its ideas.