VALUE OF LABOUR

Otago Daily Times, Issue 26776, 20 May 1948, Page 4

VALUE OF LABOUR

FORTHRIGHT COMMENT

INCREASED BUILDING COSTS

P.A. INVERCARGILL, May 19. Forthright comment on the value of labour in New Zealand to-day and suggestions to combat what could well be “one of the biggest slumps New Zealand has ever had,’’ featured the remarks made by the president of the Southland Building Society, Mr H. Ritchie, on building costs, labour and wages. “After a close observation of workers in many different classes of erttployment, I have become perfectly convinced that should the price of our exports-—meat, wool, butter and cheese —fall aopreciably, we in New Zealand, with high wages and the 40-hour week, will experience one of the biggest slumps New Zealand has ever had,’ he said. “Just where is the limit on building costs going to end?" he asked. Houses which cost £IOOO about 10 or 12 years ago would cos! £2OOO to £2200 to build to-day. “This increase is not in raw materials,- but in wages,” Mr Ritchie said “ Wages can certainly not have increased by £IOOO a house during this period, and one can only come to the conclusion that we are not getting a return from labour commensurate with the increase in wages or the increased use of mechanical aid. We are so richly endowed in this country that I honestly believe wage-earners could work a 40-hour week and employers still nnv <?niV) wages, but must show a profit on his-labour. It is totallv imnos c ibi° for ms i-qrry or as at present. “Fortunately, there are still many good employees who are born workers and give, of their best in all circumstances,”'he added, “but they arcgrowing fewer, as they receive no more monetary reward than the ‘ clock-watcher.’ ” -