WAGE RISE IN AUSTRALIA

Taranaki Daily News, 9 May 1929, Page 6

WAGE RISE IN AUSTRALIA

FAR-REACHING EFFECTS DISMAY OF BRITISH SHIPPERS. SERIOUS RESULTS FORESHADOWED Sydney, May 2. Far-rcaching effects of the recent rise in the Federal basic wage, due to the quarterly readjustment of living costs by the Government Statistician, are now being realised, not only in Australia, but also by those who have any interests in trade with this Commonwealth. At firet sight it merely appeared that wages would rise and that, for instance, New South Wales employers -would have to face an increased wages bill of more than £500,000.

But it has since been pointed out that the cost of living is not likely to decrease to material extent;. rather will it increase in sympathy with the increased costs to cover the rise in wages It came as something of a shock, therefore, to see the Railway Commissioners computing their increase in costs at £500,000 alone, while other services and other employers take a similarly gloomy outlook. It is almost a certainty that unemployment —already -a grim enough spectre in Australia—will increase considerably, and the outlook for the future in industry is Anything but rosy. Business circles in Britain are reported to be surprised and alarmed at the position, and the effect of the rise of wages on shipping costs is set out in a statement issued by the Overseas Shipping Representatives Association. “Oversea, and particularly British shipowners, view with dismay the heavy direct increase in yearly costs,” it sets out. “This figure will be approximately £120,000 so far as Now South Wales is concerned. “While the direct rise in cost due to the .higher basic wage will represent approximately £lOO,OOO a year, it is impossible accurately to calculate the heavy indirect increases in connection with ships’ stores, tally clerks, dumping, etc. In the same way the estimate of £20,000 a year additional cost from the operation of the New South Wales Child Endowment Tax does not include indirect chargee. (The Endowment Tax was reimposed by the present Government in view of a certain deficit on the year’s operations of the State). “The position is peculiarly unfortunate,” the statement proceeds, “to the British cargo lines running to Australia by reason of the deferment, at the request of the Prime Minister, of intended freight increases. Those charges were held up pending the visit to Australia of representatives of British oversea shipping and their conference with Australian importers, exporters, and producers, in the hope that mutual cooperation would either minimise or render unnecessary the intended increase in freight. “At the recent joint conference in Sydney between representatives of those bodies mentioned, figures compiled by leading British accountants were submitted'showing that in the last three years a loss of £3,000,000 had been sustained by British cargo and cargo-pas-senger lines trading to Australia from the United Kingdom. The steamers involved in the loss were worth more than £10,000,000.

“Figures also compiled by the British accountants showed that the increase in freight earnings represented by the proposed higher freight charges would be only seven per cent. , “At the present moment committees of producers, importers and exporters are in process of formation in the various States for the purpose of cooperating with the shipowners’ committees already appointed. The objective is to lessen Australian burdens on oversea shipping and secure a general improvement in oversea transport which is so vital to the welfare of Australia.

But the expenses .which the committee were to endeavour to reduce have been increased by this new impost of £120,000, which -will render much more difficult the task of lessening costs, and thus avoiding an increase in freight rates.”

Australia is at present in the throes of industrial turmoil which promises to be more serious than any of those unfortunate struggles which are dotted all too frequently through her comparatively short history. Rises in costs such ag are brought about by the general increase due to the increased cost of living, throw doubt on the suggestion that this industrial tangle will be straightened out with the same ease as has characterised previous settlements.

Outlook in all industries is similarly overshadowed with the shipping position, and there are many who claim that the position reached l-w, with its infinite possibilities, is the logical conclusion to the multitudinous decisions which make up the tangle of arbitration law in Australia. It seems to point to the fact that decisions of the Arbitration Court may work out' in theory; but that they have merely reached a dangerous impasse in constant application. Economists look forward to the future with anything but confidence.