TRUCE NEEDED

Hokitika Guardian, 26 August 1926, Page 4

TRUCE NEEDED

CAPITAL AND LABOUR. STABILISATION OF AVAGES. CHRISTCHURCH, Aug. 25. An industrial truce of live years was advocated strongly by the Hon Mr Shailcr Weston, M.L.C., president of the New Zealand Employers’ Federation, who delivered an address at the annual meeting of the Canterbury Employers’ Association last evening. He congratulated the Association on its progress. It was gratifying, die said, to see the way in which the son ices of the professors and graduates of Canterbury College were being availed of by members. The popularising of economics among commercial men wouU. 1,0 of great benefit in years to come. .Members would have noticed, with reference to a recent pronouncement of the Arbitration Court, that Labour was considering secession in a body. Air A. L. Afonteith, Labour’s representative on the Court, bad said that be was very dissatisfied with its working, mid was apparently leading the movement. Employers could not compel the workers to make use of the Arbitration Court, but before they did secede, they should seriously consider the position. Afr Monteith was a man of great physique and the possessor of a powerful voice, hut did not trouble to read. If the working class was influenced by a man who did not make himself up-to-date on economies, it would soon find itself iff the position of British Labour, which was being led by Mr A. J. Cook.

“STRONG MAN OF LABOUR/’ Afr Monteith was priding himself on being the strong man of Labour in. New Zealand. The speaker had already urged an industrial truce which was also being advocated by Air Havelock Wilson. It would be achieved by the stabilisation of wages and conditions, and was a real concession by the employers. AA'e bad entered on an era of diminishing prices. An increase in the Customs tariff, a decrease in wages, or greater efficiency in production were the only ways in which the situation could be met. The first was likely LFbe disappointing, but with regard to the second, he suggested that it was one that the employers should ho debarred from vising. Rather should they rely on an industrial peace made with Labour and improved methods of production and organisation. Tlie gain would compensate for what employers would forego. In the Dominion there were a quarter of a million wage workers, and a 10 per cent, increase in their wages would mean £5.000,000 per annum. The least result of an industrial peace would be a decrease of 10 per cent, in food prices. Everybody expected the cost of living to come down—in the dairy group for instance. “STAMPEDING THE COURT.”

'The trade union leaders, instead of discussing how far they could stampede the Arbitration Court into' granting small increases in money wages, would he better employed in arranging an industrial truce for the next five years. To the thinkers on the Labour side lie appealed for consideration of the scheme he had suggested, to see whether it was not the best remedy to the present state of affairs. . THE TARIFF.

Ho was interested in secondary industries. but be did not think an increase in the Customs tariff would be of much advantage. . New Zealand was a country of primary products, and if its primary industries were affected, the whole country left it, whereas the result would not be so serious in the secondary industries. He shuddered to think what would Happen to the Dominion if there was, say, an outbreak of' foot-and-mouth disease. Our isolation in the .Southern Seas precluded our obtaining an outlet for our manufactures. and our home market was not easily accessible or closely confined. AYo enjoyed a high standard of living, anil this caused high freights and handicapped internal trade. Industry hero was exposed to tlie mass production of goods by manufacturing countries with customers numbering millions. In Australia the population was congregatebrl largely in three big cities— Sydney, Melbourne, and Brisbane—and it was comparatively easy for manufacturers to reach their customers. INDUSTRIES NOT SUITED.

What was the use of trying to meet such conditions with industries not •suited to a primary-producing country ? Industrialists conk? only get an increase in the tariff by enlisting the support of their employees, who would demand increased wages, which* action would he followed by workers all round. With the increased tariff it would he necessary to increase prices, and so the vicious circle would be drawn. An increase in the Customs tariff would not benefit them much. Half the losses in industry in New Zealand were -duo to -over-competition. Too many people wanted to live in the towns, and once a man found an opening, it rapidly became, overcrowded. The newcomers might cut their own throats, hub before they did so, they did a great deal of harm to the original concern. 11 they were able to induce a substantial increase in the Customs duty, many of those at present advocating it would he sorry for their action, because of the greatly increased competition. Particularly in the North Island, land was going out of cultivation liecause of an insufficient balance over returns. If they continued to push up wages in the secondary industries, the primary industries would be contracted. There was an abundance of work available in New Zealand, blit it was work at a price. For instance, there were hundreds of acres of scrub

which needed cutting, but at the present rate of wages it would be folly for-farmers to put the work in hand. DANGER, TO PRIMARY INDUSTRIES.

If wages were going to increase -any higher than they were at present, they were going to cripple their primary industries. In time, not only poor land, but second-class holdings would go out of cultivation. In some States of America on'v old men were farmingall of the young men had gone into the -towns. If they wished to enjoy the present standard of security and comfort, he urged them not to make the Dominion a manufacturing country at present. The secondary industries would grow in their own way. For many years to come the destiny of New Zealand was to be a great primary producing country. There was no country happier than New Zealand, and its present condition could be maintained only by an industrial truce which might later be extended. Mr Weston was accorded a vote of thanks.