WAGES AND PRICES.

Hawke's Bay Herald-Tribune, Issue 146, 8 July 1937, Page 4

WAGES AND PRICES.

In the course of a letter published yesterday a correspondent had something* to say -vvith respect to the scant regard vvhich recent legislation has'shown for the ultimate consumer of industrial products and to his utter lack of opportunity fco lay hjs case before the tribunals set up to administer our industrial laws. Seemg that it is, in the end, from the eventual • eonsumers in the mass that the whole costs of production and distribution, including wages, are drawn, it can scarcely be denied that they should at least have some hearing when factors contributing to these costs are under consideration. So far, however, they have beeii completely denied representation of any kind before either the Conciliation Council or the Arbitration Court. Thus all fchey can do, as law-abiding citizens, is to grin and pav up, no matter how the prices of thc commodities they require in the daily lives of themselves and their households soar np as tlie result of the Court's findinga; In this connection it may be worth while noting that a bill recently brought before the United States Congress, the Black-Connery Lahour Standards Bill, takes at least some cognisance of the rights of the "forgotten man," the ultimate consumer. Under this Bill it is proposed that a Labour Standards Board of f ive persons, nominated by the President, with the approval of the Senate, should be set up, with functions which, broadly speaking, run much on the same lines as fchose of our own Arbitration Court. This Board is, however, authorised and expected to appoint advisory committees in certain industries and regions. On these committees not only smployers and employees but also the consuming public are to be orepresented. After hearing these committees the Boafd would then proceed to establish minimum wage and maximum hour standards classified according to industries, occupations, localities, size of communities and other considerations, with power to have special regard to small businesses and to seasonal or emergency overtime work at special rates. The main point about this proposed legislation, however, is that for the first time the consuming public, the eventual payers of all costs of production and distribution, and their capacity to pay, are granted some measure of recognition. Simultaneously with the submission of this Bill to Congress the Public Affairs Committee of the Senate bas issued a pamphlet report dealing with the question of retail prices, which, there as here, have been forced sharply up as the result of industrial legislation. It is held that the basic problem fco be solved is to maintain and, if possible, to increase ihe "spread" between wages and prices, that is, to keep prices down so that the benefit of improved wages shall not be virtually lost to the wage-earners. "Increasing the spread between wages and priqes" says the rexDort, "is the only way; in the long run, by which living standards can be permanently raised and the economic system developed to its full usef alness. " It is at once recognised that, if wages are to be kept up and their purchasing power maintained by* keeping prices down, the only means to this end are to be found in increased efficiency in production, mainly by improving mechanical plant and equipment, which had greutly deteriorated during the years of the depression. To this- end, of course, fresh capital must be provided, but it is realised that such will be forthcoming only if there is something like stability in the volume of other outgoings and in the conditions of employment. Though only in a minor degree the same contention applies here. But what sort of encouragement has our Goyernment given for capital to embark itself either in setting up new industries or Cxpanding those already in existence ? For the restoration of wages all were prepared, for that was a generally accepted plank in the platforms of all political parties. But the quite uncalled f or introduction of the 40-hour week, with all its disturbing, disorganising and disruptive effects, at once provided an effective check on industrial enterprise. Then followed increases in taxation collections that were altogether at variance with the pre-election promises given. On top of this we have all sorts of restrictive legislation, which has the effect of placing all industrial and commercial activities completely a.t the tender mercy of a single Minister. Finally, we have Cabinet Ministers, from the Prime Minister downwards, telling us, in rather boastful vein, that Sbey are not yet half done with their schemes for regulating everything according to their own ideas. In the face of all this, what possible hope is there of restoring and extending our industries and bringing the unemployed back into profitable employment, while at the same time keeping commodity prices down?