HIGH WAGES DOCTRINE.

Otago Witness, Issue 3885, 28 August 1928, Page 38

HIGH WAGES DOCTRINE.

LABOUR MEMBER CRITICISED. WELLINGTON, August 22. That the Labour Party's advocacy of American industrial methods consists only of taking the high wages doctrine was a point made by the Minster of Finance (Mr W. Downie Stewart) in replying to the debate on the Budget in the House of Representatives to-day. Any suggestion to embrace the entire American system, the Minister contended, would mean the death of the party. The Minister remarked that the criticism of the Budget had been of so mild a nature that he began almost to feel uneasy as to whether he had not produced a Labour Budget.— (Laughter.) As an instance of that he had only to remind Labour members of their persistent demand to allow the wealthy people to use the workers’ and the small traders’ bank for their own convenience, and to the great inconvenience of the bank itself and the Government. A Labour member: You cannot get away with that. The Minister: I sha l ! come back to that subject later. I am merely quoting it to show the Labour Party’s new policy of protecting the rich. In his advocacy for the introduction of high wages in New Zealand, the Labour member for Lyttelton (Mr J. M'Combs) had worshipped at the shrine of Henry Ford. If Mr M'Combs would persuade his colleagues to apply the methods of the great capitalists in A,merica to New Zealand before the coming election, not one Labour member would be returned to Parliament. The Leader of the Opposition (Mr H. E. Holland). You are wholly misrepresenting the position. Mr Speaker: The honourable Leader of the Opposition must withdraw that remark. Mr Holland: I withdraw it. The Minister repeated that if the Labour Party embraced not only the high wages policy, but the other concomitant elements, no one of its representatives would sit in the House next session. The Minister asked Mr M’Combs whether, in his claim that high wages offered the solu l tion to the present difficulties, he would adopt the American policy of abolition of unionism, the open shop, and the abolition of the Arbitration Court, and what was known as in many parte of America as the “ yellow dog ” ticket, which was to be signed as art undertaking not to join a union. Mr M'Combs: I never suggested that. The Minister:, Do you want to take out one integral part?

Mr H. T. Armstrong (Christchurch East) : Is that in the Budget? The Minister contended that if the Labour Party wanted to extract and •advocate one point from the doctrine of the American capitalists it must combine with it the other elements of the industrial system if it was to get results. Mr M'Combs: That is your assumpti-'n. The Minister. And it is borne out by results. A further interjection drew fn,m Mr Speaker a reminder to Mr M'Combs that he had already made his speech. Proceeding, the Minister emphasised that the remuneration of those interested in industry must come out of the output of industry. No artificial increase in wages could be sustained unless the increased productivity fed the reservo-r from which the resources were derived. The American Federation of Labour, it was reported, had agreed that increased productivity was the only basis for increased wages and shorter hours. There must be reference to the output of the udjistry when a wage increase was considered. The view of Mr M'Combs was lopsided and one-eyed. If the American system of high wages were to be introduced here, with it must be brought all the concomitant circumstances. If Mr M'Combs attempted to do that he would not find a seat in the House next session.