WELLINGTON NEWS

Hokitika Guardian, 19 January 1928, Page 4

WELLINGTON NEWS

UNEMPLOYMENT.

(Special to “ Guardian

WELLINGTON, Jan. 16

The Research Committee of the Economic Society of Australia and New Zealand has issued a brochure in which unemployment in New Zealand is examined at some length. The causes of unemployment are sketched as being the trade cycle transmitted to New Zealand from abroad and acting mainly through lower prices lor our stable exports. The present depression is therefore mainly due to diminished purchasing power on the fiart, of the population, of Croat Britain which is again largely, but not entirely due to 'the reduced purchasing power of the countries to which Britain ordinarily exports her piodnets. The depression in New Zealand depends to an appreciable extent upon the time lag k’tween exports and imports. No doubt this lag can in time he overcome as it- is at the present time, hut it is due mainly to the check applied to over importation I, v the hanks. A second cause of unemployment is said" to he due to uie decline of certain industries, ns tor instance the kauri gum industry and the timber industry, the latter suffering from the importation of foreign timber. A further cause is the introduction of machinery and improved methods of some industries. The heavy burden of taxation. The seasonal character of many of our industries is a sixth cause. The Arbitration Court is referred to in the seventh count and is not held to he a cause of unemployment to any marked extent, and this view while it coincides with the views expressed by it young economist from tbe Auckland district before the Labour Bills Committee is at variance with the views of seasoned economists in Wellington and Christchurch. It is contended by the northern section that from the point of view of its effect on unemployment the relevant fact is not so much the movement of real wages as the change in the ratio between labour costs and wholesale prices. A reduction of wages of less than G per cent would equate the rise ill prices and in wages, and this reduction it is said would involve a sacrifice on tin' worker of part at least of the rise in his standard of living between 1900 and 1911. An examination of the figures for different industries shows that the rise in prices and wages has not been uniform, but lias been greatest in the “sheltered industries,” It is in reference to those industries that the chief complaint as to artificially high, wages arises. It lias been rightly pointed out in some, quarters that the most disquieting features of the.• present economic position of New Zealand is the disparity between wages and prices in the sheltered industries, and in our basic industries whose prices are determined by conditions on the London market. It is held by many that tire Arbitration Court is responsible for this disparity, but the Research Committee is of opinion that, tbe influence ot the Arbitration Court in raising labour costs lias been greatly exaggerated, but this is a cheap statement. "While this Committee admits that a more elastic rate might have alleviated the position, but bolds over capitalisation of industry as being more responsible. The Committee appears to hold a special brief for the Arbitration Court, lor it says that it is uiireasonahTe to enneeiitrate on an attack oil wages, whilst neglecting conditions which are economically more important in their consequence. The special pleading on behalf ot the Arbitration Court is not convincing. Compulsory Arbitration as we know it is condemned by all other countries except Australia which is the only country holding that opinion. No one is anxious to see wages reduced, but it seem anomalous that those sbettciiug behind the Arbitration Court and it is a very small proportion of the workers, enjoy extraordinary privileges. The trouble at the Tawa Flat Deviation will bring before tbe public many cogent reasons why there should be some drastic amendments of the Industrial Conciliation and Arbitration Act. As to Tawa Flat a trout) Itwas manufactured for tbe workers, and it looks very much like an effort at Job control. No set of workers should lie permitted to intimidate workers. AVe want freedom and Fair play in .this.