WELLINGTON NEWS

Hokitika Guardian, 12 April 1929, Page 5

WELLINGTON NEWS

ROOT CAUSES OF UNEMPLOYAIENT

(Special Correspondent.)

AVELIiINGTON, April 10. AV. J. Poison, ALP., Dominion I lesident of the N.Z. Farmers’ Union, has contributed to tho “ Evening Post,” AVellington, two lengthy', but fairly interesting if discursive articles which purport to deal with the root causes of unemployment. The articles are in effect a reply to Mr T. O. Bishop whose panacea for unemployment is for the people to buy more New Zealand goods. This is on the lines of the slogan recently adopted by the Afeat Producers’ Board, people it did seem fell for the patriotic stunt and did eat more beef, with the result that up went the price ol beef. The sentimental appeal to “ buy more New Zealand goods” will not cure the unemployment that exists, and Air Poison contends that the three problems of immigration, land settlement, and unemployment must he considered together. In the opinion of others the unemployment problem will lead to the solution of the other two automatically. Air Poison rightly observes that “ high costs are one of the chief factors of unemployment.”

To find work for our unemployed while a duty of the State, which must be undertaken, is in no sense a remedy for the evil. It goes much further than that. It is the result of high

costs and can only he a reduction i

costs.” Having stated this fact he asks what powers we possess in New Zealand for dealing with the important question, and he admits we have none, at least we do not know for we have not made an investigation and for that reason lie thinks that the Industrial Conference which was held last year and proved abortive, should be reconstituted. A good many people can see no advantage, and no possible benefit to the community in again calling an Industrial Conference, for it will again prove abortive.

It is generally agreed that in costs of production 80 per cent goes in wages and present wages which have been fixed by the Arbitration Court, are spoken of as standard wages, and in the view of labour leaders and labour agitators to attack the standard of wages is to attack the standard of living. This, of course, is utterly absurd and as the labour members of the Industrial Conference are not likely to agree to any revision or adjustment downward, another conference of employers and labour would he valueless.

Air Poison very rightly contends that “there is little prospect of real recovery and permanent expansion in local business until costs are adjusted to prices which the local market can afford to pay,” and Air Poison must know that to reduce cost it will be impera-

tive to reduce wages. There is no hope of labour agreeing voluntarily to reduce wages—the wages which have been awarded them by a tribunal set up by the State. If wages are to be adjusted it must be by the Arbitration Court. Our unemployment troubles have been made for us by the Arbitra-

tion Court. One British economist who has closely studied the wages problem states that no just and reas'onable settlement is possible by an arbitral or other body which confines its inquiry to the conditions of the particular business or trade where the dispute has arisen, and that is what our arbitration system has always done. The intricate unity of the industrial system requires that direct and indirect reactions of an industrial award applicable to a single business or trade shall be taken into account. The Court could reduce wages but if it attempted to do so there would be industrial upheaval. We see what is happening in Australia in connection with the timber workers. Mr Justice Lukin revised the working hours ol the timber workers, by raising it from 44 to 48 hours per week, and thousands upon thousands have been lost by workers and

employers. The cost of living has varied by little more than 1 per cent since 1924 and is at present slightly above that level. For 1928 it was 62 per cent above the

1914 level, while export prices were 52 per cent, wholesale prices 41 per cent, and import prices 36 per cent above that level. Imports are relatively

cheap and that is why imported goods get a preference over locally made goods. We are no nearer the solution of the unemployment problem than we were a year ago or two years ago, and probably it will he the same twelve months hence unless the problem is at-

tacked from the right point. The gen-

eral wage index is nearly 78 per cent higher than the 1914 level, and when it-'comes down to 34 unemployment will vanish.