IN FINAL ANALYSIS

Chronicle (Levin), 16 July 1947, Page 5

IN FINAL ANALYSIS

-Press AssociatiGn

T : Wages Rates Bependent On Primary Production

By Telegraph

WELLINGTON, July 16. A general wage increase unaccompanied by a corresponomg mcrease in production couid be oi iiubie or no vaiuevto the worker, oecause it was canceiied oue by mgncr prices, said Mr. W. E. xxncierson, resuming his address c'o che Courr of Aroitration on behaii oi the empioyers. The purpose oi che . present inquiry was the "correcnon of anomones" in wage rates caused by the "granting oi sectionai increases in cercain aiaustries," continued Mr. Anderson. It did not appear to have occurred to either the Federation of Labour or the Government thaihe disparity might be corrected by lorbiacung mcreases "agreed upon oe.ween empioyers and employees,'which had apparently been Jntrouuced in spice of the stabilisation regulations. New Zealand hau oecome doubly dependant upon the state of overseas markets 10. ohe disposal of its surplus primary produce and for the acquisicion oi materials essential for its secondary industries. rn ihe final analysis the Dominion's requirements in raw materiaL and manufactures must be paid foi by the sale of surplus primary produce, said Mr. Anderson, so thai wage rates must not only be kept in proper relation among themselves but the general wage structure must be kept in equilibrium with prices for primary produce If wage rates were raised too high the cost of New Zealand-madc goods and the costs added to .mports and charges for services would be beyond the means of chose engaeed in primary production. Impelled by the lowering of their standard of living they would seek urban employment. There would be a decline in the volume of exports and a shrinkage of the funds available to pay for imports. with consequent reactions upon secondary industries.