WELLINGTON NEWS

Hokitika Guardian, 23 July 1930, Page 2

WELLINGTON NEWS

, m. : ; i/X 5*•:"• •" ' 'REDUCTIONS INEVITABLE. (Special Correspondent.) ■a, ' / A - . r ‘ WELLINGTON, July 20. iThe situation in ; Australia is bad and the situation in New Zealand is by comparison* : really J good, but that• does not mbaiisi (that* we. will!' escape, the world^i'i^leAdecline in ; j community prices. The hard facts of the situation no longer; , admit of, (self* deception, WHat lias befallen Australia must affect ■ trt“i'Fof'Ta long time' in the, Commonwealth strenuous efforts' have been ;made to bring about reductions in costs of production and 'manufacture,'. ibuib such efforts 'have been as strenuously resisted, because in .costs . of. production or manufacture wages and salaries amount to about 80 per cent of the total. The resistance of the Labour Unions has been futile, for it was inevitable that? there. should be a reduction in" wages. They fell of their own - ; inflated. All advices from Australia show that practically in every branch of trade and industry wages have been redi^etJ,Arbitration, Courts on the other'side have shown a little courage and some appreciation of the position and have actually ordered reductions in wages as in the case of the shearers and pastoral workers. Of course the workers hay©!not accepted the situation ’calmly,’’J apd strikes are certam--to : ,’be numerous. The shearers have apparently accepted the facts, apd . all others must do so. The . miners of New South Wales after a prolonged struggle were forced to agree' wage reduction, and they are proß'ahly now all the liappier for being at work and earning their daily bread instead of living on the -charity of 'their, fallows. In the Australian States, where the power of taxation is ’limited other steps have been iorced upon the Governments, that that: they have been obligedi'tp tpvertrto economy, and so wef'fihcljexpenses being reduced in. al|j * 't% ' \ < In New Sputh ' Wales salaries of members of Parliament have been re-. • duced, and in' .Tasmania ay < «imi)ar j gesture is* intended by the. Government of the day, The dolej I is proposed in New ! Z©aland iitfe bepiv! tried especially in Britain: rand lias 1 failed. On the face of it it seems reasonable and to some extent logical that those in work should contribute to those out of work through no fault of their own, but when the matter is seriously considered it is an unsafe proposition. There is" the real danger that the dole tax once imposed will remain, and if hot required for its present, purpose will he devoted to some other purpose, under the title of social leg? islation. Then again the amount of the dole is bound to be increased, and at the next election the Labour Party is , bound to suggest that the dole should (be increased by. .100 per cent or at least 50 per cent. Relief wages started at 12s apd 9s and now they are about 145.-,.‘afid ..12s and if Labour-secured theycontrol of the Treasury Benches the ' wages would soon be on the “standard'’ basis. These are the dangers. The main requirement in the present strained ''economic. conditions, according to a, business man, Wlio voiced the above-sentiments, is reduction of costs of,- production and intense economy .in „public and private life, and that should give a lead in Jt is contended that ra#||'alisat;jOn|slipuld be . extended to aif; ! y .Gpveriuiient departments. In reximit:■’years''■■the tendency has been to muTfitily the departments and to realise th'|s> ; one has . merely to compare of departments now with teiV--yeai-s’-ago. - Amalgamation of related departments would save a good deal of expense. This business man was of opinion that the Government should give a lead in salary; reduction. Ministers’ . salaries could-; be reduced at least 20 per cent without injustice. Salaries of Members of Parliament should be lowered to £3OO a year instead -of £450 now paid, and they should; be called upon to refund the “lump sum” of £IOO that they voted themselves last session, It was afso contended that the Arbitration Court should be wiped out, or at least preference to unionists should be abolished. When told that his ideas were revolutionary and noi likely, to receive support, he replied that wages have fallen in Australia notwithstanding that a Labour Government is in power there.