The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. FRIDAY, FEBRUARY 27, 1931. QUICKNESS BEST.

Southland Times, Issue 21331, 27 February 1931, Page 6

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. FRIDAY, FEBRUARY 27, 1931. QUICKNESS BEST.

How does the Government propose to deal with the awards of the Arbitration Court? This question is causing some concern in the country, because the Prime Minister’s statement suggested a course of action which if followed will defeat itself. Mr Forbes declared that the Government would give the Court authority to review awards in the light of current economic conditions, and presumably this means cither that the Court will be able to undertake the alteration of awards without being moved to action, or will be able to take cognisance of the economic position when it is asked by a party to an award. To permit a tribunal to interfere with its own award is dangerous, but if the Government’s scheme is to invite the parties to appeal to the Court there may be such delays that relief will not be obtained in some industries until a year or so has passed. If the Court is to review awards individually, hearing evidence and argument, the process will be lengthy in each case and delays will lead to inequalities in treatment, which will cause serious dissatisfaction and tend to retard the effect of the adjustments on the cost of living figures. In announcing a cut of 10 per cent, in all salaries paid by the State, the Government asked the country to follow its lead, and it follows that in the opinion of the Government the reduction of all wages by a tenth is considered equitable. If this is so, and there is no reason for doubt on the point, the obvious course is to secure these reductions on all awards. Parties approaching the Arbitration Court for greater reductions would be acting against the spirit of the Government’s pronouncement, and those seeking less would offend equally. The quickest, surest way, then, is to reduce all award rates by 10 per cent, by some legislative action, exempting, of course, any awards which have been submitted to this squeezing process in the meantime. It would be advantageous if the House discussed this aspect of the matter, because it is the kernel of the Prime Minister’s policy, and if this method is employed the action will be quick and certain. There are some unions, outside of the Court’s jurisdiction, operating under private agreement. They could not be reached by legislation because the functions of the Parliament do not extend to interference in purely private contracts. The Court is a State tribunal which makes awards, which have the force of law, and the State assumes the responsibility of seeing that these awards are enforced. Either Parliament or the Court by a blanket order can alter these awards, but the outside unions cannot be affected any more than the employee whose salary is the subject of a private arrangement, and who is not subject to any award. In these cases the pressure of public opinion would be heavy enough to bring about the required adjustment in sympathy with the rest of the Dominion. The results of the 10 per cent, reduction will be far reaching, and they must affect the cost of living. Of course, the Government’s extra taxation is imposing additional burdens on industry and trade, but the Government will be compelled to see that the present downward movement in retail prices is continued, so that the equilibrium can be restored. There is ample investigatory power, and if the authority is not sufficiently wide, the next session of Parliament will see extensions so that those who submit to the wages reduction will be confident that the effect of these savings will be passed on to the cost of living index. If the workers are confident about this, if they feel that their sacrifice will be effective, they will join loyally in this movement, which aims not at enriching anybody, but at bringing production costs nearer 1 to the country’s income standard, and so making possible a speedier recovery. Delays will breed discontent and endanger the whole project—the action should be swift and comprehensive, and loyal co-operation will ensure the attaining of the Government’s object.