AUSTRALIA’S TROUBLES

Hokitika Guardian, 26 September 1930, Page 5

AUSTRALIA’S TROUBLES

HIGH PRODUCTION COSTS. Addressing shareholders ait the annual meeting of Broken Hill Pro-prietary,’.Ltd;,-.in Melbourne recently the chairman of directors (Mr H. G. Darling) referred to the effect on industry of political domination, and of artificial economic conditions. He said:— • “Australia; is in a position which makes lower costs and prices a national necessity, and any effort by the men or the employers or the politicians, to disregard this aspect can only result in the further prejudicing of this country’s wellbeing. Unemployment can only be overcome by lower costs and lower prices. Practically all our efforts to place cheaper material in the hands of the consumer have been nullified by the action of the Commonwealth Government in imposing the sales ta.x, which, in my opinion, is a most unwise venture at the . present time, and which can only result in further restriction of trade, with still : .more unemployment. Political opportunism and political domination are responsible for our troubles. There is a remedy, but this can take effect only when Governments remove their paralysing hands from all industry and commerce, . and restore to the individual and the nation a complete sense of freedom. • ,

“A determined effort by the Commonwealth and State Governments to balance their budgets is a hopeful sign, but news that burdens were. to be. lightened rather than increased would give industry more heart and incentive to plan for the future. This is the aspect which creates, employment. Since 1913 further disabilities have been placed on this industry by Governments. A groat basic industry of

vital importance to- .Australia at the present time, capable of placing thousands of men in regular employment, lies practically dormant, stifled by artificial economic conditions. The richest mine is made the standard for all. There is little wonder that mining lias decayed and unemployment increased.”

Referring .to the company’s mine, Mr Darling added that every effort was made to keep the Broken Hill mine in operation. An offer was made to men to continue working for three months provided that in the meantime metal prices did not become lower. This offer, which meant a reduction of 17) per cent in wages, was rejected. Had the reduction been accepted no man would have been working for less than the New South Wales basic wage. To-day this offer would not he renewed by the company. To get the mine into production a large reduction would have to be made,