HIGHER COSTS

Otago Daily Times, Issue 23204, 31 May 1937, Page 10

HIGHER COSTS

NO APOLOGY OFFERED INCREASED WAGES DEFENDED STATEMENT BY MR SEMPLE (Per United Press Association) GISBORNE, May 30. "It is perfectly true that when I was here last I made reference to the riding system and said that, in my opinion, it was a system that had outlived its usefulness," said the Minister of Public Works (Mr R. Semple), in replying on Saturday to a deputation of ratepayers of the Cook County Council, which sought a measure of lelief partly through the abolition of ridings and partly through increased costs. "I would rather see the counties abolish this system voluntarily than compulsorily. Fifty out of 125 counties have abolished ridings, and this is the first protest I have heard of in the whole of New Zealand, so this must be a unique case, or there must be some fundamental cause for a different position here from that in other places." The Minister said that a good deal of propaganda had been broadcast about the disastrous effect of higher costs. It should be remembered, however, that the present Government, in common with other Governments, had been trying to give relief to farmers, including the exchange rate, which represented a saving of between "£8,000,000 and £10.000,000, and was designed for the farmers. The present Government had instituted the guaranteed price of butter and cheese. Some farmers had claimed that the price was inequitable, but the Minister reminded them that it was subject to review at the end of the year. New Zealand was the only place in the world' where this scheme had been put into practice, Mr Semple said, and the fact that it was entirely new legislation should not be lost sight of. The guaranteed price made it impossible for the farmers of this country ever to be paid a slump price again. Of course; if they were not satisfied, they had their remedy. A poll could be taken of the farmers of the country and they could if they wished discard the system of guaranteed prices and run the risk of receiving 6d a lb for their dairy products. If the prices for butter were more than the guaranteed price, the Minister continued, the farmer would receive the benefit of that in due course, so it was not quite fair to say that the Government had done something that would drive the farmer into bankruptcy. If the farmers of the country wanted to go back to the stage of gambling with their produce the Government did not mind. ' The Minister said he made no apology for the higher wages. Every man in the Dominion, whether farmer or otherwise, who rendered service was entitled to his legitimate share of the productivity of the country. He repeated that he had no apology to make for compelling an employer of labour to pay higher wages because it had a beneficial reaction on commerce and on the industrial activities of the country. Claiming that this idea was based on sound economics, Mr Semple invited anyone to " knock a hole in it." On Public Works men were being paid what they earned and wherever possible jobs had been mechanised as a means of compensating for the higher wages bills. By this means charges had been reduced from 80 per cent, to 33 1-3 per cent. The' Minister contended that the counties of the Dominion would have to follow along those lines. Some of the gear he had seen belonging to some counties belonged to the Stone Age or might have come out of Noah's ark. The counties should do their work economically by utilising the most up-to-date mechanical equipment available.