WAGES AND PRODUCTION

Otago Daily Times, Issue 27450, 25 July 1950, Page 6

WAGES AND PRODUCTION

Sir, —“ Rattar ’* considers that I havs missed the point of his argument, so ht restates it in practically the same terms/ The argument rests on the claim that 20 per cent, of the .people receive 50 per cent, of the national income. I dispute this and challenge “ Rattar ” to produce official statistics to prove his claim. It is obvious that there must be variation* in income. It would seem that “RattarI’’ 1 ’’ has drawn a line somewhere, and concludes that all above that line ,are in th® luxury class and all below it in th® poverty class. New . Zealand’s standard of living depends on the export of farm produce, for that is the only item of exchange with which we can obtain goods from overseas. Present indications are that there will b® no increase in export prices for farm produce this year, and the future is likely to see a decline. Costs have risen substantially against the farmers, mainly through wage increases. If costs are not held now the farmers’ efforts to increase production will be frustrated, and all in New Zealand will ultimately be the worse off. ■

The Federation of Labour looks- after the interests of its members, and no doubt considers it is doing the right thing in pressing for a general wage increase. Farmers, other sections of the people, and the Government must resist such a move as being against their interests and against the interests of the country.—l am, etc., Yeoman.