REDUCED WAGES

Stratford Evening Post, Volume I, Issue 56, 13 February 1931, Page 5

REDUCED WAGES

THE WORKERS' CASE I .if DEPUTATION TO MR. FORBES INTEREST AND MORTGAGES WELLINGTON, Feb- 12. A strong protest against any proposal to reduce wages was made to-day by a deputation from the Wellington Trades and Labour Council to the Hon. G..W. Forbes. Introducing the deputation, Mr W. Nash, .\1.1'., said that if wages were reduced the problem would be just as groal us before. The reason for the crisis wus because production had outrun consumption. -A reduction in wages would onh further decrease con-

sumption. .Mi J- Tucker, secretary of (lie Storemen's Union, said they appreciated the task that faced the Government and were afraid that the Government might listen lo the monied and propertied class to the detriment of the worker. If the Government gave the Court power to reduce wages it would amount to a breach of contract with the workers and would be as bad if not worse than repudiation of the national debt. Any reduction in wages should be on a cost of living basis- That basis had been good enough when prices were 1 soaring and should be good enough under present conditions. Effect of Falling Wages Mr W. Maddison of the Carpenters' and Joiners' Union, said that the falling wages adversely affected the state of commerce more than any other economic phenomenon. The fanner would benefit very little from a wage reduction in secondary industries, as the reduction would be sb small that it could not be passed on. In addition, much of the farmers' jjroducts could not be exported and if wages came down he would have to face a sniallchome market. The farmers' real difficulty was due to the heavy interest charges consequent on inflated land values. The Government should see that one per cent interest over 6 per cent was placed in a pool for the purpose of relieving farmers in difficulties. There was over £30,000,000 worth of .mortgages in New Zealand and if the Government took the action suggested, land values would be deflated The condition of the country could be met by other means than wage reduction, but in the event of the Govern meat deciding to reduce wages, interest and rent should be reduced also, so that the present Standard of living could be maintained. He also asked that wheat prices be brought iuto line with world parity. The Prime Minister emphasised that Drivers' Union, said that the workers considered that any wage reduction would be most unreasonable. The workers had suffered reductions during some of the most prosperous years the country had had. Mr Forbes Replies

Replying, Mr Forbes said that a reduction in wages was undoubtedly a serious matter, but he wanted them to understand his position. Ever since he held office lie had been faced with the necessity of balancing the Budget. Some little time ago lie had made a statement that if they continued on the way they were going they would be faced with a dificit of £3,000,000, and since then there had been a further serious drop in the prices of produce. As a result the farmer was right up against it and it was very probable that many people who had invested all their savings in broad acres, which once were a safe security, would not receive their interest. Manufacturers too, were feeling the pinch. In fact he did not think there was one section of the community who were not feeling the economic pressure- It was no use thinking that the country could go on in the same old way. Some adjustment was absolutely essential. The whole matter was fraught with difficulty and he intended to accept responsibilityHe intended to maintain the finances of the country in a sound position and balance the Budget. He wanted to make it plain' that in reaching a decision he was not swayed by any section of the community. He had heard the case presented by the farmers and the employers generally, and before making aiiv pronouncement he wanted to hear the case of the workers. He now had that opportunity and would decide upon the course the Government would take. That course would be fair to all.