WAGE CUTS

Hokitika Guardian, 1 December 1931, Page 5

WAGE CUTS

INCREASE UNDER LABOUR GOVERNMENT? Air Downie Stewart is known throughout New Zealand as Renig cautious and moderate in all his statements. But Mr Stewart himself has declared “If the policy put before the _ public by the Labour Party were given effect to, New Zealand .would be faced with National default, repudiation, and insolvency.” There is no doubt that the Labour Party, with its talk of repudiation, and organising of credits, would freeze a)l capital in the Dominion. In addition their general . policy, particularly the .Socialistic programme, would so dislocate business and discourage enterprise that trade would quickly be brought to a standstill. Insolvency would stare the majority of business houses in the face, and a general tightening up would he the order of the day. With. such a position obtaining m New Zealand should the Labour Patty gain the Treasury Benches further wage cuts would become inevitable, and wholesale dismissals would take place with tlie tightening up of capital and its effect on trade, Compulsion would undoubtedly create chaos, and the boast of the Labour Parti' that it would restore the wage-cuts may in fact become just the opposite. In tliese circumstances it is quite clear that the warning issued by the Minister for Finance is no light one, and must be seriously considered when estimating the effect of a- change of Government on the future. L.ll.