WAGE REDUCTIONS

Rotorua Morning Post, 28 August 1931, Page 6

WAGE REDUCTIONS

RAMSAY MacDONALD'S - ATTITUDE. CHRISTCHURCH MAYOR SAYS HE AGREES WITH POLICY " Just wnat I expected," was the comment made by the Mayor of Christchurch (Mr D. G. Sullivan, M.P.) oh the announcement that has been made by Mr Ramsay MacDonald, Prime Minisler of Great, Britain, that his Government is not contemplating a policy of wage-reduction. Mr Sullivan , conlended that the reduction of wages in England wou'd have the effect of materially weakening- New Zealand's most valuable overseas market. " Mr MacDonald's announcement should he parlicularly good news for the farmers of New Zealand, and, indeed, for the whole of the people in New Zealand, hocause it must be clear to the dullest or most. prejudieed tliat a reduction in wages, and consequently in purchasing power, to the British workers must have a very fiad effect on New Zeaiand and all other countries, who find a market for 'their produce in the Old Country," said Mr Sullivan. "This should reveal the - fundamental error of the wage-reduction policy. We are told that wages and costs must be reduced in order to-en-able our country to compete successfully with other countries, and in other countries the people are told that wages and costs must be reduced to enable them to compete with countries like our own. And so we go round and round the misery bush, getLing deeper and deeper into trouble. Folly of Wage Reduction. " Apparently the British Labour Government recognises the folly of the wage-reduction argument that has been so often used ■ in this country. During the past year or two British industrialists have become more and more suspicious of the alleged advantages to be obtained from wage-re-duction,' anrl even those who liave advocated wage-reductions in the columns of British trade' newspapers have done so fimidly and in anything but a dogmatic manner — quite the reverse of the attitude of t'he wage-reduetionists in this country. % " 1 have no doubt that if the British Labour Government were set out on a wage-reduction policy the workers in other countries would be immediately told by the governing authorities that they must su'bmit to wage reductions in order to compete more effectively with the British producers. " I would just repeat in conclusion that the people of New Zealand, whoare dependent' so largely upon the English workers and the English market have "reason to be grateful that there is a Labour Government in power in the Old Country that will not lend itself to weakening that market by pursuinga policy of wage-reduction."