INDUSTRY’S HANDICAP

Hokitika Guardian, 27 April 1922, Page 1

INDUSTRY’S HANDICAP

DEAR COMMUNICATIONS

EM PI .0 Y EPS’ CO MPLAINTS

WELLINGTON, April 21

The Prime Minister’s announcement that a change of railway policy is under consideration will he very welcome to industry in New Zealand (says the “Industrial Bulletin’). If Mr 'Massey had added that the Government’s conscience in iho matter of postal, telegraphic, and ielepliotiie com nmnicat ions had been iinilurly stirred, much active and latent in tat ion would have been soothed. In r, previous article wo pointed out that, in the event of the Arbitration Court revising the- wages .scales m ihe hgnl oi the lull in the cost of living, it would be the clear duty of employers to reduce the prices of their products with the leart possible delay. A similar obligation rests upon the Government, which recently carried into effect retrenchment proposals involving reductions of salniies and sail's. These economies have not been accompanied by any eoiie.'ponding reductions in freights and communications which are excessive to a degree which is a positive burden and embarrassment to industry. This result of course, reacts upon the community, and in its effects upon the business life of the country is a material obstacle to a return to normal conditions. Ii ESTOP ING BUSINESS.

The “New Zealand Herald,'’ in a recent article 011 the subject, emphasised the principle that low rates and prices was the first essential to rostoiing a steady flow of business. Ihe “Herald” stressed the point that business instincts, concentrated oil the task of transferring the Railway Depaument’s losses to the profit side, would 'immediately suggest cheaper, and hence 'more attractive services. The same applies to the Post and Telegraphic Department. It is strange, that this very obvious principle of training should have been neglected by the Government’s advisers —a neglect prolonged to a point at which public opinion has been finally compelled to raise its voice in protest, regardless of party. Some time ago the Christchurch “Sun” published a forecast of the -Post and Telegraph Department’s proposals for higher telephone rates. The statement, which was repudiated by the Government as being premature and an exaggeration of the facts, was greeted by a unanimous howl of protest I ruin all quarters.

RAILWAY POLICY. The Government’s present railway policy (says the “Bulletin”) has had the effect of diverting to the highways of Ihe country, per motor truck, much of the legitimate carrying business of the railways, and although it. would not he fair to say that all of that has been due to the department s methods .—there is much to he said for the development of door-to-door transport a.s contrasted with the multiplication of goods handling involved 111 railway transport it is certainly true that high railway freights and reduced transport facilities by rail have alienated to a considerable extent the sympathy of the business community. What is wanted, if the old animation is to ho restored to the business life of the country, is not only cheaper freights and increased transport facilities, hut a more business-like attitude on the part of the postal authorities in the matter of letter postage, telegraph rates, and telephone charges. As the result of a similar policy in Britain, business houses in the Old Country have been sending circulars to Belgium in hulk, reposting them to English addresses and saving money in the process! Could anything be more ridiculous ?

The Government, of course, lias had a very anxious time, and is rightly entitled to the sympathy and indulgence of the public during its time of stress (the “Bulletin” continues); hut there comes a point w hen the public’s capacity for sympathy and indulgence breaks down under the strain, and that point now seems to have been reached. The employers of this country are willing to face the urgent need of cutting their prices cutting their losses, in fact in a unanimous effort to animate the circulation of the business blood of the community, and very naturally expect that the Government trading departments will iecognise their obligations in a similar spirit.