PRODUCERS' FEARS

Poverty Bay Herald, Volume LXIII, Issue 19137, 5 October 1936, Page 11

PRODUCERS' FEARS

SHORTER WORKING WEEK OPINION IN AUSTRALIA EFFECT ON EXPORTS SYDNEY, Sept. 16. The general secretary of the Graziers' Association, Mr, J. W. Allen, stated last night that there was very general fear among primary producers as to the effects which the introduction of a. 40-honr week would have upon Australia's export industries. "Employment of more men to do the same work in a. shorter time will increase the. cost of production," he stated. "It has been said that production costs will not be increased, but that is contrary to experience. The Tariff Board in various reports which it has made in the past has shown how the introduction of shorter hours has led to requests for higher tariff protection, on the ground that costs of production are increased by shorter working hours. '"Reports of the Railway Commissioner also show that his department was burdened with heavy extra costs as a result' of tlio reduction of working hours from 48 to 44, and it is a. fact that, shortly after the reduction, railway freights were substantially increased. As with railway services, so with all goods and services, the extra cost of production is passed on to the consumer. '•Now it is a fundamental fact that Australian .industries and Australian workmen cannot be prosperous if there is a- wide disparity between the price levels at which the Australian exporters must sell their products overseas, and the. price levels at which the same exporters are required to purchase their goods and services in Australia. PRICES AND COSTS "If the. Australian exporter, selling his commodity at world parity, receives a price, for his commodity which is inadequate to enable him to buy goods and services in Australia, simply because, for one reason or another, the prices of those goods, and services are out of harmony with the price which the exporter is receiving, the exporter must, of necessity, cease to purchase goods and services to a very great extent.

"Everything that adds to the cost of production in Australia tends, to make, a disparity between internal costs and oversea price levels more likely; and when that disparity does come about the purchasing power of exporters of Australian markets is lost.

"That is exactly what happened during the recent depression. The disparity in tho price levels was very great. Primary producers refrained as far as they possibly could from purchasing goods and services so as to make ends meet, and the lost purchasing power meant that. 114.CC0 Australian factory workers lost their employment. No form of protection can remedy a position of that kind once it arises. The depression amply proved' that. For whilst these thousands of Australian workmen were losing their jobs, Australian manufacturers were protected by the highest tariff in the, history of this country.

"When considering the proposal of a 40-hour week, it is the duly of all Australians to bear these facts in mind, and to realise, that there, are economic limits which cannot be transgressed by the. aid of legislation.

"There is a level above which our internal costs cannot go without, throwing tho very men wo wish to help into unemployment. That level is not easily determined, as it. is variable, but one thing is quite clear, it is conditioned upon the prices which tho world pays for Australian exports."