COSTS AND PRICES

New Zealand Herald, Volume LXXIII, Issue 22401, 23 April 1936, Page 13

COSTS AND PRICES

"WIDENING THE GAP" EFFECTS ON INDUSTRIES MR. HAMILTON'S ANALYSIS [hy telegraph—SPEClAL reporter] WELLINGTON, Wednesday "We are going away from collective bargaining and getting back to Court decisions," said the Hon. A. Hamilton (Opposition—Wallace) when criticising the compulsory arbitration provisions of tlie Industrial Conciliation and Arbitration Amendment Bill during the second reading debate on the bill in the House of Representatives to-night. "Jt is not my opinion that we are going back to a real system of arbitration under this bill," Mr. Hamilton said. "If the bill would give us real arbitration we would certainly support it, but I believe that while the bill stipulates that the decisions of the Court should be binding, many unions will not be bound but will defy the Court." Mr. Hamilton said that the Minister's speech had been only of a general nature. Mr. Armstrong had referred only to three specific clauses in the bill. It ought to be the duty of a Minister to explain all the contents of such a measure and to explain as well all the important amendments. Forcing the 40-Hour Week "Why not allow the 40-hour week to come gradually, to lie applied as it is practicable, instead of being forced on industry?" Mr. Hamilton continued. "This bill goes very near to forcing it on industry. The members of the Opposition want good wages and conditions for workers provided they are warranted by the general price level and the economic position of industry. The Labour Party wants to put wages up irrespective of the cost. " It ought liot to be forgotten that New Zealand depends so much on exports and that anything we do to make the export trade more difficult will hamper recovery. The price level of a great deal of our goods is determined overseas and not here." Mr. Hamilton contended that the wages and conditions of workers in full time under awards in New Zealand to-day compared very favourably with those for British workers in any part of the world. The bill determined wages in accordance with the domestic neeas of the workers, but without any consideration of the value of the work they did. Many employers in New Zealand to-day were no better off than the workers and the conditions under the bill would force some of those employers out of their jobs. Increased Costs in Dominion " The first general effect of this bill will be t° increase costs in New Zealand," Mr. Hamilton said. " We have been told by experts that the bill will put the costs of building up by from 15 to 30 per cent. That will mean an increase in the cost of building homes for the workers as well as others. Expert evidence has also shown that the bill will increase manufacturing costs by from 7 to 9 per cent. " The manufacturers, of course, are asking for additional protection, but I think that they are playing with fire. Any increase in the tariff will cause a further increase in costs. The bill is going to widen the gap between internal costs and external prices. That gap is already too wide. The export industry is of importance and value to any country, and if the exporting industries are not going to be considered there will be serious consequences. The Basic Wage Rate

" The bill will increase the costs of local commodities. Everything will be strictly regimented; unionism will control individuals; there will have to bo numbers of inspectors to control its operations; it will tend to lessen rather than increase employment; it will give :i further impetus to the use of machinery. Already we have been apt to go Li'j far in the use ol machines, some of which to-day are doing work which could economically be done by manual labour."

On the specific clauses of the bill Mr. Hamilton criticised the basis adopted for tho basic wage rate and protested against the clause being made mandatory. His party had no objection to a basic wage, he said, but it was not thought the basis quoted in the bill for tho maintenance of a man, his wife and three children was sound. Surely an average based 011 population statistics was better. If it was necessary to provide more for the married man then let him be given it from another source.

LEGISLATIVE COUNCIL NO CHANGE IN PROCEDURE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday An assurance that the GorcrnmeDt had no immediate intention of making the Legislative Council an elective body was given in the House of Representatives to-day by the Prime Minister, Mr. Savage, in reply to a question from Mr. H S. S. Kyle (Opposition— Iticcarton). In asking the question, Mr. Kyle. had twitted tho Prime Minister on tho democratic principles involved and had sought information whether the Act, which already provides for the election of Legislative Councillors, would bo put into operation by Proclamation. Mr. Savage replied that at present the Government did not intend to put tho Act into force.