ECONOMIC INQUIRY PROCEEDS SLOWLY

Rotorua Morning Post, Volume 1, Issue 11, 4 September 1931, Page 3

ECONOMIC INQUIRY PROCEEDS SLOWLY

mass of evidence EFFECT OF WAG^3 CUT J ON RETAIL TRADE INDICATED OTHER EGONOMIES ADVOCATED *

- ("Post" Special Commissioner.)

WELLINGTON, Thurs. The views of the National Dairy Association and the Dairy Export Control Board concerning current economic problems were heard before the inter-party economic conference this morning. Mr W. Iorns, chairman, appeared on behalf of the Export Control Board and Mr A. Morton, chairman of directors of the National Dairy Association appeared for that organisation: The evidence of Mr W. Goodfellow, chairman of directors of the New Zealand Cooperative Dairy Company, Ltd., will be heard on Monday. - . This afternoon Sir Henry Buckleton, general manager of the Bank of New Zealand gave evidence and leading economists will appear to-mor-row, when evidence will be tendered by, the f ollowing specialists from each of the four centres: Professor Fisher (Otago), Professor Tocker (Canterbury), Professor Murphy (Wellington), and Professor Belshaw (Auckland) and also by Mr D. O. Williams, Lecturer in Economics at Massey .Agricultural College. The Prime Minister has been requested by his eolleagues on the committee to ask the House of Representatives to forego Friday's sitting in order to enable the committee to devote the whole day to its work. The work of the House has taken an uninteresting second place to that of the inter-party economic committee and an adjournment means a sacrifice of only three hours. Accordingly, Mr Forbes intimated in the House last night that he proposes that after to-night's sitting an adjournment shall be taken until next Tuesday evening. The committee intends to sit long hours to-morrow clearing up the balance of the evidence, thus preparing the way for its deliberations early next week. There is already an overflow\ of evidence which has to be taken on Monday. On that day Mr J. Roberts will state the case on behalf of the Alliance of Labour and the president of the Trades and Labour Councils' Federation, Mr F. Cornwell, who gave some evidence yesterday, is to submit further statements in writing. It has become an open secret that a majority of the members of the committee have become restive over the-large amount of time being spent in hearing evidence which is disclosing no particular constructive features which would help them in their task of evolving a plan for the rehabilitation of the country's finances. Steps are now being taken to shorten this phase of the proceedings and already some interests which have desired to place their views before the committee have been requested to do so in writing. Opinions Divided The committee has been faced with variations of opinion on the question of the desirability of a further reduction in wages. It is reported that when a suggestion that certain wages should be further reduced was put to representatives of the retailers, they showed no desire to support further wage reductions, stating that the 10 per cent. cut already made had been followed by a marked decrease in business. They therefore feared a further decline if the purchasing power of the community generally was again restricted. It is understood t.hat the Employers' Federation has requested an amendment of the Arbitration Act, not for the purpose of lowering wages, but with the object of removing restrictive eonditions from awards. The Federation contends that these eonditions add more to the costs than actual wage increaseS. Some employers proposed that the compulsory arbitration system be abandoned in favour of methods of conciliation. Labour members of the committee showed by their cross-examination of these witnesses that they regarded that as a proposal for the complete abandonment of arbitration methods in New Zealand. Lower Costs Needed Though the employers are understood to have strongly stressed the necessity for reduced costs, they did not specifically indicate reduced wages, but referred more directly to restrictive eonditions and high national taxation. They suggested that the country will have to face a stabilisation of prices at a permanently lower level and that profitable production will be possible in future only on a basis of lowered costs. Some suggestions from the manufacturers were regarded as definitely constructive. They urged the encouragement of small rural industries, such as pig and poultry raising and flax development, while at the same time advocating the vigorous encouragement of suitable secondary industries which are capable of absorbing a large number of men. It has become known that members of the - committee enjoyed quite a lively - interlude during the examination of witnesses from the Associated Chambers of Commerce. They liad put up a suggestion that among the proposed national economies should be a drastic reduction in the size of Parliament. Members of the committee were naturally much interested in the witnesses' ideas as to the naturb of the economical representative system they woulcl substitute for the present method. They were pressed hard to give details, particularly of costs and savings compared with the present system, but they appeared to be unprepared for so searching an examination, being unable to give the information so anxiously desired. This led, it is said, to some caustic Questioning from one particuT larly strong advocate of deinoncratic institutions which elicited from a witness the view that the Chambers of Commerce wanted an investigation. "Well, this is an investigation," was the member's retort.