MANUFACTURER SAYS WAGES TOO HIGH.

Star (Christchurch), Issue 18339, 16 December 1927, Page 11

MANUFACTURER SAYS WAGES TOO HIGH.

“ JUST AS WELL OFF FIFTEEN YEARS AGO.” The view that the standard of wages for all classes in New Zealand was too high, and that the solution of the Dominion’s economic problems was to be found in an all-round reduction, was expressed by a manufacturer at the annual meeting of the Canterbury Manufacturers’ Association last night. In proposing the toast of “ Town and Country,” Mr F. L. Hutchinson said that for too long they had looked upon the functions of the agriculturists, the manufacturer and the labourer as antagonistic, but a better spirit was now prevailing. The spirit of reconciliation, of getting together and understanding each other’s difficulties was the spirit in which they should strive.

The crucial point in the whole problem of finding a solution of the difficulties that confronted them, said Mr Hutchinson, was the question of wages. By this he did not mean the standard of living, which should be kept up, and he did not refer to the working wage-earners only. It applied to all classes, the clerical, the employers, and the professional. Wages had got too high all round, and the cost of living was proportionately high. They were just as well off fifteen years ago on smaller wages and salaries because living cost less and the value of wages was relative to what they would purchase' .. OUT op GEAR.” The high rate of wages threw New Zealand out of gear with the rest of the world and made it impossible for manufacturers to compete with ove: seas products, and it made it very difficult for the farmer to sell his products in the open markets of the world. That was not the solution of the whole problem, ,but it was a serious factor, lie had noticed that Australia was realising that she had gone too far with the raising of wages and that it had involved her in great difficulties. Australia was a great country, and was an example and a warning to New Zealand. They must work out and develop an economic system which suited the particular needs of the Dominion. They had been presented by their professors with the old theories, and a commonscnse and practical view showed them that theories would not help them. They had a splendid young country, “ a land flowing with milk and honey,” producing enough and to spare for everyone, and yet they were in a ghastly tangle. There was a way through, and it was to be found in getting together and facing the problem. (Applause.) DEBATABLE POINTS. The Mayor said that he was very interested in the speech made by Mr Hutchison, as it simply bristled with debatable points. However, he quite agreed with Mr Hutchison in his main contention that the primary need of the present time was unity—unity between town and country and unity between capital and labour. Speaking as a Labour man, he thought that there was a good deal of misunderstanding about the matter. Those who took the Labour point of view were not, so mad as to believe that the world could do without capital and without capitalists. What they wanted was to increase the number of capitalists. (Applause.) Money was not capital, however. They were never going to have permanent freedom from industrial trouble until every labourer became & capitalist. The great problem was th« ownership of capital, the control of capital and the division of capital. His own impression was that many people got more than they deserved, and others got a lot less than they deserved. Mr Hutchison had suggested a reduction in wages, but he considered that if there was to be any reduction they must begin at the top and not at the bottom. (Applause.) He was glad they recognised that. There was, of course, a certain amount of income that was absolutely necessary. His theory of life was that there must be a recognition that a standard of living must be provided for everyone before anyone should have an excess of income. The chairman (Mr A. W. Beaven): Provided they work for it. The Mayor: I quite agree with that, but there are many people who are getting big wages and do not earn a quar ter of them. A voice: Who is the judge of that? The Mayor: At the present time I’m the judge of it. lie added that his alternative was that a man must either work for his living or starve to death. But they must assume that a certain standard of living was necessary, and it was only when that was provided that they should consider what should become of the surplus. They should look after their own family first and others afterwards. The interests of town and country and the interests of capital and labour were absolutelj' identical.

Mr E>J. Howard, M.P., said that the thought that to reduce wages was the secret of the solution of their difficulties was running 'through New Zealand at the present time. Cheap labour and the lowering of wages was not the solution. lie believed that high wages would help to solve their difficulties /Hear, hear.)