WELLINGTON NEWS

Hokitika Guardian, 23 February 1927, Page 4

WELLINGTON NEWS

OUR ECONOMIC CONDITIONS

(Special to “ Guardian.”)

WELLINGTON. February 21

llis .Majesty's Trade Commissioner in New Zealand (Mr B. L. Ileaie) cannot be accused of any bias in dealing with trade matters. Ho is here to make a continuous study of our economic position and to report to the Hoard of Trade. In his last report, details of which were cabled to the New Zealand papers, Mr Beale pointed out that the Dominion would have to face keen competition, keener than hitherto, and lie suggested that " it will require a vigorous application of energy, an increased production per man, per acre and per animal to maintain the high standard of life common throughout the Dominion, which" has been somewhat easily secured in tile past.” In this the British Trade Commissioner tells us that the high prices of the war years, and the years immediately following the close of the war are gone. The tendency now is for prices to decline under steadily increasing competition. Since we cannot lever up prices we must depress costs, or as Mr Beale says: “An increased volume of production coupled with a reduction in the costs of living and production arc the essential factors needed to enable New Zealand to maintain its standard of living in the face of the lower world prices prevailing for the great hulk ot the products.” The competition js now beginning to be felt and the figures for last year show the result. The wool clip of the 1924-25 season realised £17,738,738. while the clip of the following season yielded only C 11.830.188, a loss of £<5,908.550. not-

withstanding that 34,9-18 hales more were exported in 1926 than in the pro-, vious year. Dairy produce in 1925 yielded £10,010,940. and in 1926 the return was £14,634,550, a deficit of £1,406,384. Frozen meat last year brought in £8,227,558, while the return in 1925 was £10,875.524, and here we have a loss of 02,647,696. Thus in respect to wool, dairy produce and frozen meat our main exports, and the primary products that have to face outside competition, the returns of last year fell short of those, of 1925 by the 'substantial sum of £9,962,900. With a shrinkage in the income of nearly ten millions sterling we cannot go on pitying the same old wages or indulge in the same old extravagances, hut there seems to be a great number of people wlio think we can. As Mr Beale observes our high standard of life “lias been somewhat easily secured in the past,” and now we must fight to maintain that standard. The costs of living and production must lie reduced, that is imperative and inevitable, and if we take the problem in an orderly nun sane way. all sections co-operating, the transition from high costs to low costs will be effected without undue hardship, hut if the reductions are opposed by various groups seeking their own selfish ends then there will ho much distress and hardship, and this is tho opinion of men capable of judging. Reduction in the cost of living and in the cost of production must go together. Commodity prices must fall, or what is the same thing they must lie marketed at cheaper rates and with] goods and services also, according to j the economists the cost of living will ] lie reduced and wages will fall eorres- ] pondingly, and this drop will not affect; the “standard” of living for the re-] dueed wages with cheaper commodities will maintain the standard. How to cut the costs of production is a problem that presents some difficulties. Tu all industries, sheltered and unsheltercel, constitute tlic larger proportion of tlje costs of production. The sheltered industries pass on the costs to the consumers, but the unsheltered industries cannot do so. In tho opinion of many sound business men, and it is the opinion of economists also, readjustment of working costs in our industries, and reconstruction of the industries is impossible so long as the Arbitration Court with its dictatorial powers exists. No industry can make any move whirl) will in the slightest manner affect tho wages and conditions. Appealing to the Court for a review of these matters is cumbersome and unsatisfactory, and can it be wondered that there is a demand on tin l part of certain industries for more protection. An authority who claims to have given tho matter close consideration asserts that until the Arbitration Court is abolished there can he no adjustment of costs of production, nor will there he any increase irt production. The Court shelters the slack worker and prevents the best worker giving of his host. Antagonism to tho Arbitration Court has increased very greatly recently and now it is stated that a conference is to he held in Wellington shortly of producers and employers to consider the advisability of repealing the industrial Conciliation and Arbitration Act.