DEPRESSION IN AUSTRALIA.

Otago Witness, Issue 3996, 14 October 1930, Page 71

DEPRESSION IN AUSTRALIA.

LESSONS FOR NEW ZEALAND.

URGENT NEED FOR ECONOMY. AUCKLAND, October 7.

The hope that New Zealand politicians would put aside all partisanship and examine earnestly the causes which in Australia have contributed to a period of acute hardship among practically all classes was expressed by Mr A. I. Johns, general manager of the New Zealand Insurance Company, who returned to Auckland by the Marama after a month in Australia on a business trip. “ Those causes are operating here today,” Mr Johns said. “ The politicians are greatly to blame, but it must be remembered that we get the Government we deserve.” There was a marked change in the appearance of Sydney. The streets had lost their old atmosphere of cheerfulness, and “ to let ” notices were numer ous throughout the city and suburbs. Rents had fallen appreciably and values were difficult to assess, as sales were taking place at figures much below the standard of recent years. Owners of flats indulged in various schemes to at-, tract tenants, even going so far as f o pay removal costs, electric light bills, and gas bills. The shopkeepers were feeling the pinch, and stocks were marked down to figures which would make re-stocking most difficult. In the country the farmers were still faced with low prices for wool, and wheat was at a disastrous figure. Generally, the season had been good, but in certain districts rain was urgently needed. New South Wales and Victoria with their large industrial populations were suffering more than Queensland, which had more diverse primary interests Its Government, too, had put corrective measures into operation earlier than the other States. “The main cause of Australia’s troubles, and to a lesser degree our own. is the false standard of living,” Mr Johns said. “ The standard of living must be based on the average annual wealth produced by a country. A man earning £4OO a year can set himself a £5OO standard, but he is very soon called on to come back to a £3OO standard while he recovers solvency. Australia to-daj’ is on a standard below the true average, and will remain there for some time. Strenuous efforts are being made to maintain awards which have already disappeared in all but name. In most business places work is rationed, and the staff misses one week in four or five. In one leading hotel in Sydney the waiters work alternate weeks.: Thus, although awards inay make provision for their payment at £6 a .week, they are really getting only £3. “ I have mentioned awards,” proceeded Mr Johns, “ because they are the great factor in the cost of living. At least two Arbitration Court judges in Australia have enunciated the principle that they arc not concerned with what an industry can afford to pay. During the last five years increases in awards have enlarged the annual wages bill by £20,000,000. That amount, together with some extra profit, is added to the cost of living. In the same period the hours of work have been materially reduced. “ The country will certainly overcome its present hardships,” added Mr Johns, “but the process will require a Government prepared to place country before party and combine patience, hard work, and economy. At the moment most of the State Governments are showing hesitation in facing the inevitable drastic cuts in expenditure and are placing burdens of taxation on industry. Unless production and industry are on a sound and profitable foundation the outlook for any country is hopeless.”