WELLINGTON NEWS

Hokitika Guardian, 10 February 1928, Page 4

WELLINGTON NEWS

an important inquiry

(Special to “ Guardian WELLINGTON. Feb. 8. The Liberal Party ill Britain lias made an iiupiiry into industrial problems and lias issued an exhaustive volume of odd panes which covers the h hole economic position. The book has not been written by mere politicians. hut hv business men and trade unionists in the Liberal ranks, in collaboration with .Mr Llovd George. The report therefore may lie taken as authoritative and of special vaalue. not alone for Britain hut for the whole Umpire. The most interesting feature of this report is that it condemns the Dominion system of preference to unionists. Such a system it is contended would make the Empire burdensome to the poor classes in Britain and prevent her doing what she can do now for Imperial development. The. system would lie mutual only as regarded the Dominions and not being applicable to India, and not enforcable in the Crown Colonies and Protectorates for which it was impracticable and likely to be more harmful than beneficial. 'lbis is a strong indictment ol the Australian ami New Zealand system of compulsory arbitration and ol prelerence to unionists and remember that the condemnation ol the system does not rest wholly with business men, hut it is also the considered opinion of trade unionists. '1 here is really nothing to recommend our compulsory system except that it has conferred certain rights upon certain individuals who regard these rights in the light of vested interests. Preference to unionists is wrong in principle, lor m> man should have preference by law in his work. The efleet of this clause is to raise up aristocrats of labour and give them the right to victimise their lei low workmon. It is the inalieionnhle right of everv man to work as best he can and as strenuously as he can and the State has no right to give anyone preference. The Liberal report opposes direct State trading, which is the curse ol New Zealand and Australia. It is recognised that some work must he done by the State, and the Liberal programme lavotirs the development o, public hoards to control utilities. It advocate* large scale semi-monopolistic private concerns. This is in accordance with the trend of affairs throughout Europe and America. It is now a time of big inmpnnies with massed production and low costs. 01 course vtu h •concerns require to he stringently in-pceted. and the ordinary shares ol these large concerns are now regarded n, sound investments lor the lit mis ol life insurance (ompanies, and this is heartily supported by .Mr Maynard Keynes, the eminent economist. In New Zealand as a general rule we have lon many companies of small calibre engaged in heavy competition with one another, and thus there is unnecessary duplication of overhead and other charges, resulting in heavy costs oi production. We would he better oil with fewer and larger companies would he stronger financially, possess better facilities for marketing, have lower costs of production and he able to sell their products at a lower rate, thus giving the consumer the benefit ol the saving elfeeletl. lint again we say the report is more condemnatory ol the New Zealand and Australian system ol compulsory arbitration, and the authors definitely declare that they cannot recommend it to England. It would have been recommended to other countries long, lung ago il it had been any good, fur it has been v. illt us lor over thirty years and lms failed to altrael any other nation except Australia.

I’rnfcssnr "locker, who has been addressing business men in Sydney last week, made it appear that the I’ederal Prime Minister. Mr S. Bruce, is calling

a conference of employers and employees. somewhat on the lines as has been done in New Zealand, and il is obvious from this that both countries question the value of arbilration. Bo‘!i sides require large organisations to fight their battles and this is very costly to the consumers, hut the Arbitration Court fosters that. '1 here are two ideals before the community. One is the utmost freedom of industry with both sides concentrating on production and the elimination of waste in development. with the greatest possible liberty and with responsibility thrown on individuals and voluntary groups.. This system was working exceedingly well in the United States and to some extent in England and on the Continent. However the system is voluntary and with no State interference. The other ideal, according to l’rolessor Tucker, is tlie perpetuation of State control, with an attempt to protect toe worker, hut actually to restrict and hamper industry, without granting workers any real benefit and without the ( ourt performing any really necessary service though by its own system of centralisation magnifying the problems it attempted to solve. The more closely the arbitration system which lias prevailed in Australia and New Zealand is examined, the more dangerous and useless it appears to be. freedom of action of the individual is very important.