THE BASIC WAGE

Nelson Evening Mail, Volume LXIV, 15 January 1931, Page 7

THE BASIC WAGE

THE AUSTRALIAN POSITION

In the last twelve months there has been a substantial reduction in the cost of livintr in Australia, and the basic wage has been lowered in every State, but the same relative decline in real wages as fixed by the Arbitration Court has not been shown, states the monthly review of H. Byron Moore, Day, and Journeaux. Business leaders, particularly in the pastoral industry, nave, made some adjustments tending towards lower production costs, hut in many instances it has been to the ultimate detriment of the industry by reason of the altered conditions involved in scrapping many of the essential processes which have brought the inchn try to the present high standard of efficiency. With the high price of wool during recent years, labour represented a comparatively small percentage of actual cost, but with the severe decline in price which has taken place over the last fifteen months it is now an important factor, and one which must be substantially reduced if tho industry is to continue on. a margin of profit basis. The wheat grower, although in a desperate plight, is perhaps not so seriously affected by labour costs. With favourable seasons and increased acreage under crop, he is .able to an extent to reduce or maintain the same percentage of labour charges by increased production. Nevertheless-! every encouragement must be offered to the grower, whilst low prices prevail, particularly those who have not the facilities for increasing output, as our national resources would be. seriously affected by any compulsory curtailment in output .