INCREASED INCOMES

Otago Daily Times, Issue 23556, 20 July 1938, Page 7

INCREASED INCOMES

AHEAD OF HIGHER COSTS CLAIM BY MINISTER CENSUS OFFICE FIGURES QUOTED (Per United Press Association) CHRISTCHURCH, July 19. The claim that the incomes of the workers and the small dairy farmers were ahead of increases in the cost of living was made by the Minister of Industries and Commerce (Mr D. G. Sullivan) at Rangiora last night. He quoted figures supplied by the Census and Statistics Office-—“a department that knows no politics”— in support of his contention. The Census and Statistics Office had supplied him with the figures, which showed that the all-groups index of retail prices for April, 1938, was 13 per cent, above the average index for 1935, and that the wagesrates index for adult males at March 31, 1938, was 23.9 per cent, above the average for 1935. Therefore at March 31 the workers were nearly 11 pei cent, ahead of the increased cost of living. “As to farmers, the small dairy farmers had received a greater increase in income than the ordinary workers, and they, too, were much ahead of the increase in costs,” said the Minister. “ This is the first time in history that the time lag has been in favour of wages as against costs.” The aggregate amount of wages and salaries paid for the year ended March 31 last was £98,600,000, equivalent to an increase of 50.1 per cent, over the amount for 1935.

More significant was the increase in the volume of production of goods, Mr Sullivan said. As between 1935 and 1937 the increase in factory production, outside of the agricultural, pastoral, and dairying industries, amounted to 18.6 per cent. Those additional goods could not have been purchased by people if the increased cost of living cancelled out, as was alleged, the increased wages and income, and they were not thrown into the sea.