SALARIES AND WAGES.

Waikato Times, Volume 110, Issue 18395, 31 July 1931, Page 8

SALARIES AND WAGES.

THE 10 PER CENT. CUT, COST OF LIVING DECLINE. FINANCE MINISTER’S STATEMENT (By Telegraph—Special to Times.) WELLINGTON, Thursday. ■ The Minister of Finance, in presenting his statement in .the House tonight, said:— The Finance Act, 1931, made provision for an all-round 10 per cent reduction in the salaries and wages of the Public Service. The Arbitration Court, after hearing all sides of the question, came to the conclusion that a 10 per cent reduction in award rates was necessary to enable trade and industry to carry on and provide employment for the workers. It further reached the conclusion that the reduction ordered could be made without impairing the standard of living. This is borne out by the index figures of the Government Statistician, which show that between May. 1929, and May, 1931, the “all groups” index declined from 60.9 per cent to 48 per cent above July, 1914—a fall of about 8 per cent. In the same period the food group index fell from 47.5 per cent to 24.8 per cent above July, 1914—a fall during the period of over 15 per cent. In general, the effect of the world-wide fall in prices was that the purchasing power of money was increased. A reduction in money wages is not only essential for the economic recovery of the country, but is in the real interests of the workers as a whole. It is not the money wages, but the purchasingpower received by the workers, that is the important factor. The latest cost of living figures quoted are for May, whereas the reductions in award rates were effective from the beginning of June only. The consequent savings in working-costs will enable prices to be still further reduced. The Government has all the necessary authority to ensure that the savings are passed on In one form or another, and, if necessary, the Government will not hesitate to use its powers.

In regard to bread, an undertaking has been given by the Government that no alteration will be made In the duties on wheat and flour until the crop harvested this year has been marketed, but It is. intended as from early next year to make substantial reductions in the duty on both wheat and flour. These reductions will enable substantial reductions to be made in the retail price of flour and bread.