"Cost of Labour Must Come Down”

Sun (Auckland), Volume III, Issue 804, 26 October 1929, Page 1

"Cost of Labour Must Come Down”

AUSTRALIA’S PROBLEM EXPORT MARKET LIMITED “The cost of labour in Australia must come down.” This is the emphatic opinion of Mr. E. H. Stiefvater, general manager of Merchants, Ltd., Sydney, who arrived by the Moeraki this morning and left later by the Marama. In giving his reasons for the above statement. Mr. Stiefvater said that the cost of living in Australia was so high that the export business was impossible. Australia had only three lines which she could export—wool, wheat and butter. All manufactured products cost so much to produce that there was no hope of competition on outside markets. Mr. Stiefvater gave an instance of how a duty of BJd was put on each tin of pineapple imported into Australia. Retailers immediately raised the price of the locally produced fruit. The Country had reached such a state that wages must come down. On some of the coastal steamers seamen, with the money paid for overtime, etc., earned more than the masters of the vessels.

Mr. McCormick, former Premier of Queensland, had made a very true statement in London when he said. “We have been living on a period of inflation: we must now have a period of deflation.” Mr. Stiefvater considered that the tone of public life in Sydney was not particularly high, as there were few good men at the head of affairs. He paid a tribute to Mr. Bavin, who was considered a clean-living man out to do his best for the country, but he was scarcely strong enough to do it. Merchants, Ltd., of which Mr. Stiefvater is general manager, consists of an association of large country storekeepers who have established and now control their own importing and distributing houses. The organisation was started 18 years ago, and has been an unqualified success. Last year the turnover amounted to £1,250,000.

Merchants, Ltd., imports its own groceries, hardware and drapery, and naturally, when the organisation started, there was a bitter fight with the other importers. The Sydney house* imports and sells to its own shareholders though any other storekeeper who wishes can also buy there. The biggest storekeepers throughout New South Wales all belong to the organisation and all pay cash for their goods.