AUSTRALIANS WAKING UP

Chronicle (Levin), 18 December 1946, Page 5

AUSTRALIANS WAKING UP

Press Assji.-

Race Between Prices and Wages

UNIONISTS DISAPPOINTED

By Telegraph

-Copyright

Received Tuesdav, 7.0 p.m. SYDNEY, Dec. 17. It is now obvious tliat ihe annoimcements oi 7/- increase in ihe basic wage and oi ihe relaxation oi wage-pegging* regulations are not going to have ihe inmiediate elfect oi' smoothing out ihe industrial situation. The unionists are disappointed at the sniallness oi / the increase as compared with the h £1 a week whieh they hoped to gain. They are not easily paciiied by the refiection thai ihe judgmeni oi ihe Conri was an interim oue and ihat the way has beon paved foi' a i'urilier increment when ihe Conrt eoncludes iis henring. For some inonihs ihe niore inipaiient among ihe unionists have denionsirated ilieir dissaiisi'aetion with ifke Conrt henring whieh a])peared to the cuiumoii man to meander on i'or uionths without making appreeiahle progress. The modification oi the wagepegging regulaiions will enahle wage margins to he increased by aboui 25 per eeut wldeh has been assessed by llr. L. Withall, Director oi the Assoeiated Chanibers oi -Manufacturers, as abont equal to the rise in ihe eost of living since 1939. I >nt the 25 per eent increase will be assessed only 011 margins above Ihe basic wage and not on the lull salarv oi the worker. Aeeording to the sanie authority, whose tignres are backed by tliose oi the (donnnoinvealth Kconomic Adviser (Pi-olessor (!iblin), the wage increase niust result in a rise in the general price level oi about 3 per eent. Tt is this lactor whieh has halted any possible jnbilation. The "worker is realising that the easing oi wage-pegging niight not necessarily niean a rise in all wage niargins. Cases will be dealt with individually by the Arbitration Conrt with delays whieh, tliough nnavoidable, are still irritating The worker does not even reccive his seven shillings tax Iree. A man reeeiving t'5 weekly and with two dependents, i'or exaniple. will eontribute oue shilling and tlireepence oi his seven shillings in direet taxation. The eitizen is seeing the position developing as a raee between prices and wages with wages always a lap behind. His view is apparently continned by the. diselosure that wage adjustnients will add neai'ly 150.000, 000 to the present wages bill oi £350,000,000 - — an amount whieh industry obvionsly cannot absorb without sonie adjustnient oi the price level. The eost oi living. aeeording to Statisticians, has risen 24 per eent since 1939 and a lurther increase niust occur whether the Covernnient authorises the raising oi' prices or removes the nioney from the citizen's pocket in anotlier way by subsidising industry against increased costs.

uie problem oi taxation is beeoniing an ev.er niore prossing . oue. The Labour Covernnient was re-eleetcd on a platlorni whieh proniised nothing while the Opposition canipaign liamrnered on the ihenie that the only way to increase roa] wages and promote industry was to decrease taxation. Ji the Opposition lid nothing else it drove this thenie honie. Now the slogan has been taken np strongly by unionists and even by some Labour nieinbers who aeeuse AI r. Hhifley oi stubbornness and bigotry in relusing to adopt a course oi aetion nierely because it bears the taint oi a recomniendation by the Opposition. This could lead to a situation where industrial labour eould initiate a movenient loreing a reduction of taxes as a first neeessity oi ]ieaee in industry.