LABOUB COSTS IN INDUSTRY.

Hawke's Bay Herald-Tribune, Issue 73, 13 April 1937, Page 4

LABOUB COSTS IN INDUSTRY.

The report of a speech made to the conference of the New Zealand Labour Party iu Wellington by the Minister for Industries and Commerce abput the dangers of increasing costs of production indicates that the Minister (who was presumably speaking for the Government) is at last beginning to feel a little uneasy about the outcome of Labour's industrial legislation. In the spacious days before the Governpient came into power Labour politicians were fond of promising largely and freely in terrns of higher wages and improved conditions. And when it was pointed out, whon the Goyernroent did get its industrial legislation moving, that higher wages and shorter hqurs meanfc increased costs and that too greatly increased costs meant an undue burden on industry, Mr. Savuge and his Ministers afi'ected to unpei'turbed and even introduced antiprpfiteering legislation designed to prevent the translation of an undue proportion of the increased costs into increased prices to the consumers. Certain industries, however, the products of which are in competituon with goods produeed overse,a&, have indicated to the Minister their difficulty in carrying on under their heavier burden of costs and it was this unwelcome nJws that led to the Minister 's warning to the party conference. > Certainly Mr. Sullivan told the conference that his ' ' investigations had not yet proceeded to the point where it can be said that the claims can be sustained," and added, with cheery optimism, that he had fno doubt that the Government will find a way of solving any difficulty that may be proved. " If the solution involves assistance that will make a further call on taxpayers already heavily burdened to meet the Government's commitments it will scarcely be welcome to them. On the other hand, if it means that employees will have to call a halt iu their demands for increased wages and improved conditions, they will not be overjoyed. The Government may now bo commenciug to see where its caurse is leading aud it is a healthy sign that at least oue Minister is begioning to realise that the time has eome to apply the braltes. It is significant, however, that in spite of Mr. Sullivan 's warning the conference p,assed a resolution recommeuding a further concession to employees.