WILL SAVINGS BE PASSED ON?

Star (Christchurch), Volume XLIV, Issue 65, 18 March 1931, Page 5

WILL SAVINGS BE PASSED ON?

THE PRIME MINISTER EXPRESSES CONFIDENCE. (Special to the “Star.”) WELLINGTON, March 17. The Prime Minister’s explanations of the sections of the Finance Act empowering the Arbitration Court to make general orders regarding minimum wages were received by Labour members in the House to-night with a running fire of interjections. They commenced when Mr Forbes stated he had received assurances from employers who already had made reductions in line with the Government’s proposals that they were passing on the savings. Labour members laughed heartily. Mr Forbes retorted that if there was any tendency not to pass on these reductions, but simply to use them to put more money into employers’ pockets, the Government had a department which had been instructed to watch that very closely. Mr Howard: That’s a joke. Mr Forbes: I know members sitting there will discredit and disbelieve anything I say, but I think my appeal will be responded to. There is no reason < to say that because a man is in business he has no patriotic feeling at all. Men in business have responded time and time again to requests when these were in the interests of the country. ' Are Awards Contracts? The Prime Minister proceeded to deal with the Arbitration Court’s proposed powers. It was, he said, freely bandied about that the Government was breaking agreements, but it was a misuse of the term. What was an award? Employers and employees got together and agreed on certain conditions which the Court was asked to make into an award . Mr H. E. Holland: For a specific period. Mr Forbes: It does not say a man has to work for those wages. There is nothing binding in that respect, though if an employer attempts to carry on his industry for less wages he will be brought before the Court, but where a worker can put on his coat if the conditions do not suit there is no binding effect. (Labour laughter and interruption). The Prime Minister persisted that this could not be called a contract, and said he had sufficient respect for Labour members to know they realised that also. A Labour member: We have little respect for you. MR FORBES EXPECTS FURTHER REDUCTIONS. (Special to the “Star.”) WELLINGTON, March 17. “I am confident the cost of living will come down and that the wage reductions proposed will be more than met by reductions in prices of com? modifies,'* declared the Prime Minister ip the House to-night. Quoting from figures especially prepared by the Gov r eminent Statistician Mr Forbes said it was shown that in February, 1921, the food groups index was 75.1 per cent and the all groups index 85.5 per cent above July, 1914, while last month they were only 29.4 per cent and 50.3 per above July, 1914. Stated as a percentage decrease between February, 1921, and February, 1931, computed

with February, 1921, as a ba,se, the fall represented decreases of 26.1 per cent and 19 per cent respectively. Similarly the indexes for Febryarv, 1931, were 15.5 per cent food and 8.9 per cent all grpups less above the July, 1914, base than were the corresponding indexes for February, 1930. The figures, added Mr Forbes, showed that there was a material downward trend, and he felt confident that the drop would be maintained after the legislation before the House had been passed.