Wages and Cost of Living

Manawatu Times, Volume 62, Issue 20, 25 January 1937, Page 6

Wages and Cost of Living

Workers Have Benefited, Declares Minister REPLY TO PRESS CRITICISM Per Press Association. CHRISTCHURCH, Last Night. “Figures furnished to me by the Government Statisticiam (Mr. Butcher) prove definitely that the workers have benefited by the Government’s policy of increased wages,” said Hon. D. G. Sullivan in a statement to-day. ‘‘lt is necessary,” continued Mr. Sullivan, ‘‘that I should give the truth of this matter in order to correct the very misleading statements made by the editors of a large number of daily newspapers to the effect that notwithstanding the increased wages the workers’ position had not improved but was rather worse as the result of the increased cost of living arising from the Government’s action in regard to wages and hours. “I repeat that the Government Statistician’s statement to mo proved that the editors I refer to have in their news columns furnished misleading informarion to the public and on the basis of that incorrect information have expressed equally misleading opinions in their editorials. “In the first place,” proceeded the Minister, “it is necessary to say' that the all groups index of retail prices was only 3.3 per cent, higher in November, 193(5, than m November, 1935. The Statistician informs me, in reply to my inquiry, that the weekly wage rates in practically all industries have increased by 10 per cent, or more during the same period so that there is still a big gap to bridge before wageearners fiud it ‘ very difficult to buy with their increased wages the additional goods which they were led to believe they could buy,' as one leading newspaper had it. “The price increases in New Zealand date back to a period considerably anteccding the assumption of office by the Labour Government, namely to November, 1933, as is shown in the following statement which gives the percentage (all groups) over July, 1914:

1 ‘ Rising prices are symptomatic of improving economic conditions and the rise in New Zealand prices have moved in fairly close conformity with the general improvement in conditions. The Government may well claim that ill policy legisiation lias been in the direction of ensuring that all sections of the community share iu me improvement and that the increased rates of wages are a definite and desirable step iu the furtherance of this aim. It would be idle to deny that part of the increase in retail prices is duo to higher wages in Now Zealand, but it may bo stressed that the provision of higher purchasing power has enabled price increases to bt kept within reasonable boundis so that both workers and business people, ana indeed all sections of the community arc obtaining real benefit from the higher level of wage rates. “New Zealand is not alone in record ing higher prices, nor are tike increased wage rates confined to this Dominion. Part of the increase in New Zealand prices is due to the higher prices ruling overseas, New Zealand butter, cheese and wool being among tho commodities fetching higher prices iu the United Kingdom. ’ ’ Mr. Sullivan quotes figures to show that both prices aud wages have risen iu tho United Kingdom and Australia but that the purchasing power of the wage-earner has improved during the 12 months to a much greater extent .n New Zealand than in either of the other two countries. Tho following comparisons between November (or the eleven months ended November) 1935 and 1930 might be quoted as illustrative of the improved economic position of tho country and, as suggested above, it may be claimed by the Government that its policy has resulted in this improvement being shared in by all sections of the community. The following figures are for the periods November 1935 and November 1936: Exports (11 months) 1935, £42,610,239; 1936, £52,430,452. Imports (11 months) 1935, £33,103,563; 1936, £39,841,597. Bank debits month (weekly average) 1935, £13,144,518; 1936, £15,574,12. Net note circulation month (weekly average) 1935, 6,529,787; 1936, £8,123,023. Mortgages registered (11 months) 1935, £14,618,476; 1936, £17,941,697. Mortgages discharged (11 months) 1935, £15,737,694; 1936, £17,542,121. Land transfers registered ( 11 months) 1935 £13,208,705; 1936, £l6, 806, 753. Building permits (11 months) 1935 £4,095,890; 1936, £5,163,789. Sales tax collected (11 months) 1935 £2,165,969; 1936, £2, 613,997. Cargo tonnage coastal (11 months) 1935, 2,963,082; 1936, 3,350,425. Overseas (11 months) 1935, 2,589,791; 1936, 3,027,067. Railways ton miles approximately: November 1935, 256,628,000; 1936, 293,087,000. Passenger journey approximately: November 1935, 256,628,000; 1936, 293,087,000. Unemployed males: 1935, 57,243; 1936, 42,341. ‘“I take it,” concluded Mr. Sullivan, “that both the Press and public will welcome this authentic information regarding the improvement iu the condition of the country and particularly of tho workers of the country, and that supplied as they are by the Census and Statistics Office the facts 1 have given will not be questioned.”

1933. 1934. 1935. 1936 February .. 26.9 23.0 31.5 33.6 May .. 26.8 29.3 33.0 36.1 August 26.8 28.5 33.1 38.4 November . 27.4 29.1 35.8 40.3