INCOME ANOMALIES

Waikato Times, Volume 127, Issue 21193, 16 August 1940, Page 4

INCOME ANOMALIES

When the labour unions applied for and were granted a general order advancing award wages by 5 per cent, it immediately became apparent that attention would be drawn to certain anomalies which the Government would find difficult to explain. Could one section of the community be given the benefit of increased income which was denied others ? The only defence that is readily available is that the position of the award wage-earners alone had deteriorated by comparison with those who are not receiving an arbitrary increase in income, and that argument would be difficult to sustain. Leaders of the dairy industry had tacitly agreed that they would not ask the Government to increase the guaranteed price for butter and cheese, on the understanding that other sections of the community would be satisfied with the existing standard as far as income was concerned. There was no hard and fast undertaking in that respect, but members of the Government and others have been emphatic that the present is not the time to appeal for increase in wages or other payments. The trades unions, however, were able to show the Arbitration Court that of which everyone is fully aware—that the cost of living has advanced and a pound in wages is not now worth as much as it was before. On that evidence the court granted th» unions an increase of 5 per cent, in wages. All of the factors that contributed to the increase in living costs of the wage-earners also increased the costs of the dairy farmer. In fact he has additional costs impositions which do not reach the wageearners. The farmer cannot go to the Arbitration Court for an increase in prices. If he could his evidence would be unanswerable. He has to throw himself upon the mercy of the Minister of Marketing, who, of course, must to some extent be guided by the market price of produce and consideration for the welfare of Britain in a time of crisis. How is the anomaly to be adjusted ? Can the Government by a hit or miss method simply hold that financially the farmers are better or as well off as the wage-earners, or will it cling to the formula by which Mr Nash laid down a basis of equality as between the producers and the wage-earners ? It would be a strange chance if the advance of 5 per cent, in wages can be held to be a proper adjustment of the balance which had swung to the extent of 5 per cent, against the wage-earners.