LOWER WAGES

Waipa Post, Volume 42, Issue 3305, 4 June 1931, Page 4

LOWER WAGES

REFLECTED IN LOWER RETAIL PRICES. Commenting on the Arbitration Court award which reduced wages bj 10 per cent, the Wanganui Chronicle says:— The instrument which for years has registered increases in minimum rates of pay under awards is not to be regained as a partisan institution. It is possible, however, since it has decided that the reduction of 10 per cent of minimum awax-d wages is necessary, that the Arbitration Court will be presented as an instrument of the Government. The Government could, and did, make it possible for the Court to review the whole wages question by a general order, but it could not influence the Court in its decision it it wanted to do so.

It was found by this impartial tribunal that wages are at an uneconomically high level, and on this subject Mr Justice Frazer’s decision is interesting. It is as follows:

“ The maintenance of an uneconomically high standard of money wages in such a case (as the present) means a reduced output and a reduced aggregate purchasing power, while a reduction of money wages to an economically justifiable standard stimulates consumption and, in its turn, production, and provides a greater purchasing power for the community in general. The reduction in award rates of wages in New Zealand.necessitated by the depression of 1921-22 were followed within two years by an increase of 7345 in the number of workers employed in manufacturing industries, and an increase of £896,0; in the amount of wages paid.”

This touches the crux of the matter: lower wages result in lower prices; lower prices stimulate consumption, thereby increasing the national wages bill, and thereby reduces unemployment. It is hoped that the wage reduction will soon be reflected in lower retail prices, and that the expected stimulus to employment will not be long delayed.

The Main Highways Board, at its last meeting, approved a tentative financial allocation to the various highway districts throughout New Zealand to meet the cost of the construction and maintenance for the.financial year 1931-32, and district highways councils have been asked to submit recommendations to enable the board to compile the annual estimates. In accordance with the requirements of the Main Highways Act, 1922, district highways councils are also being invited by the board to make the annual review of main highways. While this is being done in accordance with the requirements of the Act the board is not in a position to declare any substantial length of highways, but will merely consider special cases where altered conditions justify assistance from the board’s funds.