WAGES AND COSTS

New Zealand Herald, Volume LXXVII, Issue 23773, 28 September 1940, Page 8

WAGES AND COSTS

EFFECT ON PRODUCTION HAMPERING REGULATIONS NEED TO CALL A HALT Criticism of what lie described as the vicious spiral of wages and costs, which, if persisted in, would inevitably result in decreased production, was expressed by Mr. H. F. Worsp, chairman of directors of the Auckland Farmers' Freezin<£ Company, Limited, at the annual meeting yesterday. "The immediate future, as far as prices for primary products are concerned. is fairly clear, for with fixed prices for most form products, and the likelihood of these continuing for the duration of the war, the farmer is provided with a margin of profit, so long as costs and taxation do not soar said Mr. Worsp. "Although no one wishes to, or is likely to, make any extra profits owing to war conditions, farmers who have been producing at a loss or on a bare living margin ought not to have any 'increase in income, which has been brought about by improved seasonal conditions, or war effort, classed as excess profits, and so be left without means to enable them to increase production and meet their obligations, Need of Stability

"The time has arrived for a guaranteed all-round stability. It is not fair to ask that farmers, salaried men and people with fixed incomes. shoHild eon•tinue to accept what they received before the war, while higher wages are being given, leading to higher costs and prices. One section should not be permitted to build uj) its income on a price raising basis at the expense of others. "The war entails sacrifice, but there should be some equality, and no one section of the community should be allowed to offset war taxation by demands for higher wages without any corresponding productive effort. There is plenty of room for cost reduction at present. The legal limit of the 40-hour week is one example. Cause of High Costs "Industry, trade and transport are to-day more hampered by regulations than has ever been the case in this country. The time, effort and money wasted by industry in conforming with regulations which interfere with enterprise and production, and the maintenance of ptfblic servants who are responsible for maintaining regulations and inspection, is very substantial, and one would think must far outweigh any gains. "Fanning costs at present are high and this is one of the factors that is hampering primary production, some part of which has recently declined. These costs aro largely the result of prices charged for their services by regulated and sheltered ;industries. "Transport is one example, but onlv one of manv. A reduction in the costs of the sheltered industries would increase New Zealand's export production. "What is of paramount importance in this country to-day is that a halt should bo called in continually recurring regulations and inspections."