ECONOMIC COMMITTEE

Otago Daily Times, Issue 21430, 3 September 1931, Page 10

ECONOMIC COMMITTEE

* FURTHER EVIDENCE HEARD STEADY PROGRESS MADE FURTHER WAGE CUT SUGGESTED (From Our Parliamentary Reporter.) WELLINGTON, September 2. The special Economic Committee of Parliament is steadily continuing its scrutiny of the public finances of New Zealand sat, taking evidence at both sessions to-day, when representatives of the manufacturing employers and labouring interests were heard. “ Business as usual ” was the only announcement made by the Prime Minister (Mr 6. W. Forbes) at the conclusion of the sittings this evening. The committee, he said, had heard, Mr J. T. Spears, president of the New Zealand Manufacturers’ Association, Mr F. C. Campbell, president of the Wellington Manufacturers’ Association, as well as Mr T. O. Bishop and Mr A. C. Mitchell, secretary and president respectively of the Employers’ Federation. Towards 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. The evidence of witnesses from the commercial and manufacturing interests have been closely questioned by the Labour members of the committee, particularly those who, in urging a reduction in overhead costs throughout, industry, advocated further drastic economies among the 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 the 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, as the emissary of the wage earners, were heard in quick succession. To-morrow Mr W. A. Irons, chairman of the Dairy Board, and one representative of the National Dairy Association, will give their views of the dairying industry. Mr W. Goodfellow was to have appeared to-morrow, but he is unable to do so, and will probably be brought before the committee on Monday. The evidence of the dairy industry will to some extent coincide with that given by the sheepowners in so far as the seriousness of the low prices has made it difficult for many dairy farmers to meet their mortgage obligations and carry on until prices improve. As the 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 be receiving some consideration is that of a further 5 per cent, cut in the civil servants’ salaries, and a further review of the Arbitration Awards, particularly as they affect certain sections of the community. Pressure is being brought from many quarters for the suspension of awards as affecting the producers. These proposals, if brought before the committee to discuss will assuredly be opposed by the Labour members with one of two results, either Labour will split the committee and drive the United and Reform members into a common camp for the purpose of pressing the economies through, or Mr Holland and his colleagues will sit through the whole deliberations and present a minority report to the House. It appears' certain that whatever recommendations are made must be of an economy nature, and a greater sacrifice will be asked of the people in bringing the country through the depression. In order that ( the work of the committee might be facilitated Mr Forbes intends to ask that the House will adjourn to-morrow' evening until Tuesday evening, eliminating altogether, the Friday sitting, To-morrow evening the Auckland Harbour bridge will be brought up for discussion, but the Radio Bill, which was expected this week, will not now appear until next week because of alterations and redrafting. It will probably be introduced on Tuesday evening.