“NEW DEAL” FOR INDUSTRY

Timaru Herald, Volume CLVIII, Issue 23318, 29 September 1945, Page 5

“NEW DEAL” FOR INDUSTRY

Growing Labour Demands Pressure on Cabinet (730 p.m.) SYDNEY. Sept. 28. Faced with growing demands from most sections of the community and especially from its own Labour supporters, the Federal Government is expected to revise its policy on wage pegging and the means test for Social Security benefits.

New South Wales is sponsoring a move for a complete recasting of the Labour platform at the Federal Australian Labour Partv Conference at Canberra in November. The aim is to secure the Australian Labour Party's endorsement for <l> the abolition of the means test. (2) a general Aus-tralia-wide 40-hour week and (3> an industrial “new deal." It also aims at the substitution of the contributory social services scheme for the present plank, which is flatly opposed to all contributions. Tl«e abolition of the means test will result in pensions for all regardless of income and is regarded as a major necessity for maintaining the Party's present grin on the middle income group. With these groups now swinging away from non-Labour parties, it is claimed that the abolition of the means test would be a practical demonstration of the fact that the Labour policy had some appreciation for views other than those held exclusively by low wage earners. The Federal Parliamentary Labour Caucus decided this week to apooint a sub-committee to Inquire into the means test. Mr J. B. Chifley (Prime Minister) said recentlv that he would abolish the means test, if financial arrangements could be made to meet the estimated cost of £35/100,000 a year. The caucus also decided to appoint a sub-committee to investigate demands for the unpegging of wages. Caucus members said there had been pressure from ail A.L.P. branches and from major unions for the repeal of the National security Regulations, which pegged wages. Fixing Basic Wage In Canberra this week-end Mr Chifley is meeting representatives of the Australian Council of Trade Unions to discuss hours and wages. Tlie question of finding a new- basis for fixing the basic wage will be discussed. The president of A.C.T.U. (Mr P. J. Clarey) has announced that he will ask Mr Chifley for an immediate introduction of the 40-hour week and an increase in the basic wage from £4'lB/- to £5/4/- a week. Other demands to be placed before Mr Chifley are a general reduction in taxation, the lifting of taxation on incomes below £3OO a vear and a referendum for increased Commonwealth powers for the control of prices, investments and materials. Political correspondents In Canberra supporters is so strong that it is say that the pressure ‘from Labour doubtful whether Cabinet can long withstand the demands, and at least some concessions are likely.