WELLINGTON NEWS

Hokitika Guardian, 18 February 1931, Page 7

WELLINGTON NEWS

THK STANDARD OF LIVING. (Special Correspondent.) WELLINGTON, Feb. 16. This time-worn and more or less meaningless phrase again cropped up when a deputation representing a section ol the workers waited upon the Prime Minister to protest against any reduction of wages. It would be profit, able to submit the statement of the speakers to the acid test, but first of all let us see who the speakers were. The deputation was introduced by Mr Nash, M.P., who may be termed one of the aristorats of the Labour Party.

The first speaker was Mr J. Tucker, secretary of the Storemen’s Union; he was followed by Mr W. Maddison, of the Carpenters and Joiner’s Union, and the third speaker was Mr A. Parlape, secretary of tiie Drivers’ Union. These men, or at least two of them, draw their wages and salaries from their respective unions, and it must be obvious that if the earnings of the members of the unions contract the payments to the secretaries must shrink also, so that those advocates of the workers were objecting partly on behalf of the workers but mostly on their own account. The phychologjca] effect of a reduction in wages would he detrimental to the officials 0 f the unions,

Mr Nash, in introducing the deputation, said that the chief reason for te crisis was because production had outrun consumption, and a reduction in wages would only further decrease consumption. Mr Nash poses as one of the chief economists of the Labour Party, but he is no economist, but a battler for self-interest. If production was in excess of consumption then obviously it would lie unwise to reduce wages, and Mr Nash seeks to apply this to New Zealand, and in doing so underrates the intelligence of the people. Production in New Zealand lias always exceeded consumption, and it is to he hoped that it always will be so. But let us make this plain. We produce, butter and cheese, wool, beef, mutton and lamb, to speak of no others. We are unable to consume all that we produce of these articles, therefore it is correct to say, so far as the Dominion is concerned, that the production of the articles mentioned is in excess of the local demand, and everyone is urging the farmers to go on and increase production.

It is the excess production, that is the balance over what we need for our consumption is the source from which we draw the income which enables us to pay for the things we want that other people produce in other countries' This surplus production has to be sold outside the Dominion, that is to say in the world's markets, and our producers are obliged to accept the prices offered by the buyers. Before the pro* duct's reach the terminal market the producer has to pay award wages to those in New Zealand who handle his products and help to get them away to the markets. In satisfying his own daily wants he has to pay for goods handled by workers receiving award wages, or for imported goods handled by workers receiving award wages.

When the producer was receiving a good price for his products—lßss per cwt for his butter, 108 s for cheese and 14d for wool—he did not worry about the local costs because the prices were high enough to leave him with a reasonable, if not a good profit. Mow the prices are down, and it is unreasonable to expect the producer to beggar himself so as to continue paying award wages. He demands that those who handle his goods and thus help him to send them to the market should stand in with him in the fall in prices and accept reduced wages. This has nothing to do with local consumption, as Mr Nash would have the workers believe, and furthermore it is safe to say that Mr Nash knows this to be the case. It is not a question of over production or of under consumption in New Zealand; the question involved is the cost of handling surplus product of the Dominion that must be sold in the open markets of the world. Those costs are too high, that is they absorb too large a percentage of the amount received by the producers from buyers and the producers are therefore left with insufficient funds to meet their obligations. In replying to the deputation, the Prime Minister hit the nail on the 'bend when he remarked: “It was no use saying .that the country could go on in the same old way; some adjustment was absolutely essential.” Those who have dug into the labour movement and have vested interests naturally do not wish to be disturbed with adjustments.