WAGE BILL BURDEN

Evening Post, Volume CXXIII, Issue 134, 8 June 1937, Page 5

WAGE BILL BURDEN

STRAIN ON COUNTRY INADEQUACY OF RETURN (By I'elograph—l'M'fii Assncmtinn.' DUNEDIN, June 7. Declaring that the country was unable to stand the strain of its present wage bill considering the amount of work done by men who seemed to regard life,as "one long smoko," Mr. R. J. E. Smith, president ot the Otago Provincial Council ot the Farmers' Union, in the course of an address to the annual conference tonight, said that New Zealand would eventually have to face a very serious position which would react very unfavourably on the primary industry and the man on the land. "Some months go," said Mr. Smith, "an Empire conference was held in New Zealand, and one of the delegates, a prominent visitor from Great Britain, is reported to have made the following remark: 'New Zealand is a young country. Your national and local body indebtedness is just about the highest in the world. If 1 ever got into deb» I think I would take my coat off and work hard in an endeavour to put things right. How do you expect in a young country like yours that you are ever going to get out of the position you are in when you pay your unemployed 16s a day and introduce a 40----hour week?' "I cannot let this occasion pass without expressing grave concern at the tremendous amount of unproductive expenditure which is going on in this country," Mr. Smith continued. "I know that a lot of expenditure will ultimately lead to improvement in main highways, etc., but 1 question if this country can at this stage stand the strain of its present wage bill for the very small amount of work, which is being accomplished in return. As a motorist I am glad to see certain bad corners eliminated, but as a New Zealander 1 feel concerned when I see thousands of pounds being spent straightening a perfectly safe portion of a main road when there is so much developmental work stil)-to be done in this country. "On many jobs it is the exception to see men exerting themselves. With some life is one long 'smoko.' Surely it is not beyond the intelligence o! our Government to devise some scheme whereby men would have to accomplish a definite amount of work before receiving a day's pay. "You may well say, 'What would happen with those who are not fit for hard work?' Obviously such uneraployables would have to be weeded out.- I say candidly that if something is. not done soon, then the majority of men working on unemployment camps in this country will have to face a serious position." So far as he could see there were only three ways of raising moneyfirst, by taxation; second, by borrowing; and third, by inflation. All three courses seriously reacted upon the man on the land, and when ajl was said and done the land was the only asset which counted in this country. The land was the asset which was most likely to suffer if increased taxation, borrowing, or inflation were re- : sorted to. Anything which further raised farming costs' must inevitably ' lead to a falling off in production.