N.Z. STANDARD OF LIVING

Press, Volume XC, Issue 27397, 9 July 1954, Page 5

N.Z. STANDARD OF LIVING

MR HOLLAND DENIES RECESSION REPLY TO MR WALSH (New Zealand Press Association) WELLINGTON, July 7. “Mr Walsh is, of course, entitled to buttonhole any audience he can find with his story of wages, but he ought not to paint a picture of wage-earners doing without the necessities of life while others are living in increased luxury—that is simply not true of New Zealand, where all standards have advanced over the last few years,” said the Prime Minister (Mr Holland) today, in reply to a statement by the president of the Federation of Labour (Mr F. P. Walsh). “Nothing that Mr Walsh says can disprove the fact that workers are earning more, are saving more and have got more. These are good times for workers and their wives,” said Mr Holland. “It should be remembered that Mr Walsh recently announced that he planned to go to the Arbitration Court to ask for a general increase in wages,” Mr Holland said. “As a practised advocate, he will, of course, lose no opportunity of bolstering up his case. We ought to keep that in mind whenever we read what he has to say. “He does real harm, however, when he refers to privileged groups, and tries to whip up feeling against other sections of the community, when no such feeling exists,” Mr Holland concluded.

COMMENT BY MR WALSH MISQUOTATION ALLEGED (New Zealand Press Association) WELLINGTON, July 8. Mr F. P. Walsh, president of the Federation of Labour, said today that he had been misquoted yesterday by the Prime Minister (Mr Holland). Mr Walsh said he had spoken of wageearners having to do with less of the necessaries of life, but Mr Holland had quoted him as saying that wageearners were doing without the necessaries of life.

Mr Walsh said that, though wage earners were receiving more Reserve Bank notes, the purchasing power of money was constantly being reduced. The Government’s own published figures showed that the effective weekly wage had fallen by 4.7 per cent, since September, 1953. Since December, 1949, the £ had depreciated in value by 37.5 per cent. The Government was inflating money in circulation by spending on its programmes the £20,000,000 received from the sale of State houses, said Mr Walsh. This money should be used to reduce the Government’s indebtedness.

Rises in the consumers’ price index showed that in foul* years and a half of National Party administration, the cost of living had increased to within four points of the increase during 14 years of Labour administration, although the latter period included six costly war years, said Mr Walsh. The official figures also showed that the increase in wages in the last four years and a half was far short of that obtained by the workers under the previous Government.

Mr Walsh contested Mr Holland’s statement that the workers were saving more now than formerly. Mr Walsh said: “The Government’s policy of deliberate inflation and lifting the lid on costs and prices leaves the wage and salary-earners no option but to seek compensation to restore their standards of living. The Federation of Labour is under an obligation to apply to the Court of Arbitration in an attempt to obtain economic justice for them. “Mr Holland expressed concern at the intention of the Federation of Labour to apply to the Court for a further general order, with the object of

seeking a wage that will give to the wage and salary-earners a fair and equitable share of our country’s alltime record income. The right to do so is established by the law of our land,Mr Walsh concluded..