WAGES TO COSTS.

Waikato Times, Volume 108, Issue 18159, 25 October 1930, Page 5

WAGES TO COSTS.

EQUALITY OF SACRIFICE. AID TO SOLUTION OF PROBLEM. GENERAL CONFERENCE URGED. (Contributed by the N.Z. Welfare League.) The Acting Prime Minister said in answer to a recent deputation asking for a higher basic wage that it amounted to a request to fix a basic wage' for workers irrespective of the work done. Cannot these spokesmen for wageearners realise that the worker would be no better off even if his wages were doubled unless there was a corresponding increase in, the work done so as to reduce the cost of production? If wages are increased as requested by the deputation the workers would suffer in another direction, as the whole country would be much worse off, because it is less able to sell its products abroad against goods of other countries produced at lower cost. Thus nothing would be gained by a rise, in wages, while a great deal would be lost. While every avenue is being examined to reduce,the cost of production, wages based' on a false principle are supposed to be sacred, yet the value of these wages depends entirely on an all-round reduction in cost. The nominal rate of wages does not count —It is what they will purchase which is the important consideration. Levelling Down Needed. What is needed is a general levelling down; cheap money has unduly inilated the value of land; thus the farmer is paying, more interest than he ought to, because he has borrowed more money than his real land values will warrant; taxation lias gone 100 high, because the State is spending money on uneconomic railway and other constructive works and is not economising enough in its administrative expenses. This high taxation, supported by the Labour Party in Parliament, has already, in August, caused a rise in the cost of living, due to increased Customs duties, and by that rise alone this party has helped to lower the purchasing power of wages; rates have gone, up through over-borrowing and the carrying out of works on extravagant lines; this prevents rents from coming down. So much capital has been locked up in public, and local body loans that the actual wealth aavilable is scarce, and this results in keeping up interest. Wages are llxed on a false basis, and organised Labour has succeeded in imposing so many restrictions on output that costs have gone up. In short, almost everything is on an artificial and uneconomic standard, which prevents our primary producers from competing with the world’s prices. Reduction of Costs. .In the face of these faels it is difficult to understand on what principle the Government refuses to call a general conference of all sections and interests in the country, to thoroughly investigate the possibility of a simultaneous writing-down of values, prices,' interest, rates, rents, taxes, wages and other things which help to keep up our cost of, production. The advantage of a conference would be

that the difficulties of such a “writing down” would be frankly explained. For instance, financial institutions could say what prevents reduction of interest, and wholesalers and retailers could explain the problems they would have to meet. This is the only way to arrive at any result. If every- 1 one came down together all would be in the same relative position, but the effect would be such a reduction ok costs that the country could meet its competitors in open market to the benefit of everyone, and unemployment would be relieved. Mr Fenton, Acting Prime Minister in Australia, recently said: “It can clearly be seen that we are dependent to-day for employment of the people by private enterprise. We must all play our part. A Government can legislate, regulate and do many things which would assist in increasing employment; but private enterprise is the real solution of the problem.” And we venture to think that one of the “many things” the Government “can do” in this country is to convene such a conference so as to assis.t private enterprise to effect tlia necessary reduction of costs.