ECONOMIC POSITION

Rotorua Morning Post, Issue 3, 26 August 1931, Page 4

ECONOMIC POSITION

labour viewpoint 1KR P. FRASER EXPLAIN3. an interesting address. Any possibility of the formation of a National Government, as far as the Labour Party is concerned, was dispelled by Mr P. Fraser, M.P. for Wellington Gentral, in a\vigorous address ! to a crowded audience Fn the Winter Show Concert Hall at Hamilton. Mr H. Beebe, who presided, briefly introduced the speaker.

Taking for his subjeot, "The Pre3,rn'i .Brisis and the Goming General Election," ilr Fraser. explained at length the circumstances leading up to the preserit economic position of the rountry. The question of the suggested fusion of the parties was referred to as impracticahle. In order hat his audience might appreciate his, the speaker explained. it was esseniial that they understand the issues Involved.

Mr Fraser stated that the Labour Part-y did not wisli to win elections on raleh eries or enthusiasm engendered by some silly scheme, hut it wished to put all ils cards on the table. LahI our s p. oposals were so far-reaching [ 'n their henefits to the community. so

tundamenlal, that they could only he put into operation hy the majority vote of the people. In 1925, ihe Reform Party' s cry was "Coales and Confidence," and they went in with an overwhelming majority. By 1928 the enthusiasm had faded and Reform fel. right away to a minority. Tlie United Party then came to light with the cry of £70,000,000 — :an utteriy impossihlr and ridieulous amount of credit for the country to ahsorh at ihe time. Ile | believed that the late Sir Joseph W'ard meant that Ihe proposed £70,000,00!" ioan wQuId he spread over a period of years, hut the United Party and its organisers and candidates unhlushingly promised the £'70,000,000 righi away as a solution of all flriancial and economic problcnis. A cerlain result from such a policy would have been the stiding of manufaeturing industries in the Dommion. v

Tribute to Sir Joseph Ward. The speaker paid a trihule to Sir .i'Oseph W'ard's ability and fairness, and st-ated that, if he -.wero at the heud oi affairs now, the Governnient's present policy wouid not have ]>een put inio operation. The forcing of starvation wages on the workers was a heavy hlow and had produced frequen, iiisiances of severe hardsliip. Reiorm had wished to reduee wages, bu! ihrough llie efJ'orts of Ihe Labour Party this step had "been postponed and Reform was displaced by the United Pariy. Labour supported the uitler party not because they wished to keep .Mr Forhes' in, hut because they desired to keep Reform out. As a net result of Labour's activities, uage reductions liad been poslponed for twelve montlis. At the next general election the party which went in on the jingle of £70,000,000 would go out with a bundle of pavyn tickets. The speakei iiriefly dealt with relief work condilions under the Reform regime. By countenancing the United Party, Labcur had takou Ihe choice of Ihe lesser evil.

i The system of halancing the Budge: at Ihe expen.se of the poorer classe.1of the community was dealt with }>y Ihe speaker. Opportunities for calling a conference for consideration of economic trouhles had been passed over, and it was now, only after the damage had been done, that a conference was heing considered. Increased incorne tax was a solution of their present problems. People, the speaker considered, were fortuna'le in heing asked to pay income tax. Inequitableness of 10% Reduction. The inequitableness of a general 10 per cent reduction was discussed hy Ali'vFraser. Tliis reduction on those enjojing a large salary, he pointed out, (Jid not entail the sacrllice even of Iuxury, let alone tlie bare necessities oi life as was the case. with the worker on ihe basic wage.

The Hat rate of levy of the unemployment tax was criticised by the speaker. In addition to that levy a speclal tax on wages had been introduced. The Government had decided, however, that those in receipt of a private income up to £250 would not be al'fecled. Where was ihe equality of sacrilice when women and even newspaper hoys were heing taxed on wages ?

It had been held that a reduction in wages would eventually benefit the farming community and that the cosl of living would come down. Such was quite erroneous. It was not possihle for the manufaeturer to pass tliis wage reduction on. The speaker went on to quote Ilgures relating to different activities. In manufaeturing, wages cost was 15 per cent, equivalen-t to 3 Jd in the £, therefore dll that could he passcd on for an article costing Is would he tlie 20th part of 3Jd-

Position Rendered Worse. In rcgard to butter, brought down to terms of the £, it would mean a saving of ld, lience all that could be saved would be the twentieth part of ld. On cheese the saving would he only ijd in the £. Bacon and ham last season was worth £989,000 to Ihe counlry and the wages bill was £ 90,439, hence the saving was only 2Jd in the £ and all the seller could pass on was the tenth of that per lb. On hoots tlie saving would he only 8d in the £, not much when perhaps only one pair of hoots was hought each ycar. The saving on clothing and hosiery would be only 9d and 5d in llie £ respectively. Beer to the value of £1,900,000 was brewed in New Zealand last year and the wages 'totalled £250,000, therefore all the saving would he 3jd in the £. Newsnapei's and allied industries produced "goods to the value of £4,700,000 last year and the wages amounted to £1,S00,000, equivalent to a saving of 9Jd in the £. The only saving in tlie cost of each newspaper would he three-tenths of -M.

While the wage reduction of pub- . lic servanjts went into the public exchequer, that of the general public went into the pockets of the employers. Wage reductiqns, he said, gave' no corresponding beneflt to anyone. By reducing the wages of the working class less money went in the purchase of the necessities and luxuries of life, and the ranks of the -unemployed were swelled. The position had not been alleviated hut rendered infinitely worse. At the conclusion of his address a' vote of thanks to the speaker was earried l>y acclamation. »