THE Wairarapa Age MORNING DAILY. THURSDAY, FEBRUARY 4, 1909. THREATENED WITH EXTINCTION.

Wairarapa Age, Volume XXXII, Issue 3107, 4 February 1909, Page 4

THE Wairarapa Age MORNING DAILY. THURSDAY, FEBRUARY 4, 1909. THREATENED WITH EXTINCTION.

The inadvisability of Arbitration Court awards, whicn affect wages, being of a hard and fast character, is being exampliried in che case of the flax industry. The industry in question is threatened with extinction, and though oppressive royalties have had an injurious elfect to some extent, the broad position at the pros-

ent time is that it does not pay to mill flax at ruling prices, on account of the high wages that must be paid. Mr Geo. Shirtdiffe, ot Wellington, who has been connected with the industry tor a quarter of a century, has been expressing his views, and h,e certainly seems to put the position very fairly. The increased cost of production as compared with that of a few years ago is, of course, the trouble, and the chief factors of the increased cost are royalties and wages. In reference to the former | it is worth while noting that since j the market price commenced to recede in 1907, they are now based for the most part on a sliding scale calculated upon the London selling values, as quoted by the High Commissioner weekly. Royalties are, however, still too high, and should be reduced, according to Mr Shirtcliffe. Wages, on the other hand, have not only not shared in the decreased prosperity of the trade, but were actually raised by the Arbitration Court after the slump set in. It appears that the labour portion of the cost of production has increased since 1898 by aome £4 per ton. Then once more we are told —it is becoming a painfully familiar tale, with slight variations in New Zealand—that while boom prices lasted the employers were able to hear the increased impost, but now that millers' profits have reached vanishing point the position calls for a re-adjustment of wages as affecting the cost of production. But no such re-adjustment is pussible, and it is here that we have a magnificent example of the absurdity, and the resulting injury to the Dominion, of forcing up wages, and basing a standard wage, upon "boom" conditions. It is not an exaggerationit is a most absolute fact — that the flax industry, at one time an important and growing industry, is rapidly dwindling into extinction, yet flaxmillers dare not employ men except at rates of wages, which they cannot pay, and mill hands, however, anxious they may be to accept employment at wages, which would allow the mills to make a fair profit, must remain idle, and endure the miseries attendant upon a condition of unemployment. That an industry should decay, that men who are anxious "to work should not be allowed to do so except at maximum wages, based upon "boom" prices, is a monstrously injurious policy for any county to adopt, and especially a young country like New Zealand, in which most industries are as yet but •of a struggling character. The extent to which the flax industry has gone back may be gathered from the fact that in 1907, 147,000 bales were graded, while the quantity in 1908 fell to 89,000 bales, and will probably show a further decrease this jear. In September, 1907, thrrj were 130 mills at work, while m September, 1908, there were only 70 that were able to ketp going. Furthermore, it may be mentioned that in 1907 £390,000 in wages was paid, in addition to which the holders oi the flax rights spent considerable sums for labour in the improvement of their swamps. But the flaxrnilling industry is by no means the only industry hampered by labour legislation, and awards. It would be most advisable in the interests of the country if the Government were to establish a Royal Commission, comprised entirely of unbiassed members, to report upon the general conditions of our industries, and in what ways they have been effected by the operations ot' the Arbitration Court.