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Progress, Volume XVII, Issue 4, 1 December 1921, Page 77

Cement. The report of Mr. Justice Sim on allegations by the Member for Stratford cleared the cement companies and the Board of Trade completely from any suggestion that there had been combination to exploit the public. It was shown that cement had throughout the war been cheaper in New Zealand than in outside markets. As for the famous agreement, it was found not to be illegal or criminal, and the Commission acquitted the Board of Trade of any laxity as a protector of the public interest in any of its price fixing efforts. The survey of the financial condition of the principal companies made by the Judge in his. finding showed that they did not receive what would be regarded as a fair dividend on their capital during the period of price fixing. It is satisfactory to have thus cleared the air and reassured the general public that they have not been exploited by the general agreement which preceded the closing of the Golden Bay works. Cement is so important a raw material that the conditions under which it is produced in New Zealand have much to do with the general progress of the building industry. It has been shown that, for present demand, the cement manufacturing industry appears to be over-capitalised, and its possible output in excess of requirements. There are ample supplies of raw material, though one essential—coal— somewhat too dear. When business becomes normal, there is no reason why the cement production of the Dominion should not prove to be of the most important of the secondary industries, and not altogether unprofitable to those who have invested very large sums on which, so far, they have not received too good a return. State Housing Policy. . References in Parliament by the Prime Ministei and the Hon. G. J. Anderson, Minister of Labour, show that the Government is becoming more than half-hearted over its housing policy. Tenants, according to the official view, badger the Labour Department for houses, express the utmost thankfulness for the facilities promised until they have actually been provided, and then they commence to complain. This is getting on the nerves of the

Minister and his officers. Quite wisely, they are determined not to have any State tenantry as a permanent institution. The houses are being purchased under an easy system of time payments, the scale of interest and principal being somewhat less than the rent of a house of similar size let as a private venture. The State has not been any more superior to circumstances than the ordinary citizen in overcoming the handicaps to successful and speedy construction. After valiant efforts to get over some of the troubles of the times, the Labour Department finds itself compelled to frankly confess that probably the local builder is in a better position to do work economically than any central scheme run by the State. ;On this point we quote the annual report of the Housing Department : —" In a previous year's report the advisability of establishing workshops and of purchasing materials was mentioned in anticipation of a large number of dwellings being put in hand in the chief centres. Under such circumstances course would, no doubt, have led to economy and efficiency. The work of the Department appears to lie, however, in the direction of spreading its dwellings over many towns of the Dominion, both large and small, extending from Auckland and Wellington on the one hand to such places as Te Puke and Fairlie on the other. The erection of only, say, 500 houses in one year would, therefore, not provide for a large number in any one centre, yet it would involve the expenditure of nearly half a million of money per annum. While the establishment of workshops and the purchase of materials in the chief centres would probably result in some economy, which the Departmnt has already been able to demonstrate in regard to the importation of roofing iron and other materials, the cost of storing the materials and distributing them to the jobs all over the Dominion would largely nullify the advantages anticipated. It would be scarcely possible, therefore, for the Department to compete with the local merchants and builders who carry on business in nearly every town, have their own shops and supplies on the spot, and know the local conditions. The letting of complete contracts would thus appear to be the most satisfactory method of carrying on the Department's housing work.

The Apprentice Problem-—A Sidelight. The Labour Department, taking an impartial survey of the industrial position, submits some criticism of the Arbitration Court system in its report to Parliament which raises an old question with some fresh facts. It quotes comparative figures of tne wages awarded to unskilled or semiskilled workers, and those awarded to skilled workers who have to serve an apprenticeship of four or five years, and concludes with the opinion that these figures are sufficient in themselves to account for the shortage of apprentices in New Zealand. . It adds that the fact that the shortage is not entirely, due to the breaking down of skilled trades by the introduction of machinery and specialisation is indicated from the fact that in the United States the wages of skilled workers range from 50 to 100 per cent, higher than for unskilled. The Department surveys the whole of the awards and agreements in the Wellington industrial district which were in force in July, 192 1, and proves that the earnings per hour contrast as follows Skilled trades requiring apprenticeship ... is. io|d. to 2s. 3|-d. Unskilled and semiskilled trades ... is. 9jd. to 2S. iod. The comment of the Labour Department is that it will be. seen that the lowest-paid wharf labourer has received 2s. 3d. per hour, and truckers in mines 2s. ifd. to 2s per hour, while the award rate (including bonus) for the highest-paid skilled workers in the building trade (which is also intermittent), after five years' apprenticeship, the purchase and maintenance of an expensive kit of tools, and in some cases the passing of an examination before they can work at their trade, has been 2S. 3§d. per hour. The award rate (including bonuses) for a baker or a tailor (who must serve an apprenticeship of five years) has been is. iojd. per hour, while a wool and grain storeman (who need not serve an apprenticeship) has received 2S. id. per hour, and a first-year tram conductor is. iojd. plus uniform. The Court has recently laid down the principle that in awards the wages of skilled workers should be about 25 per cent, more than those of unskilled —viz., 2S. and is. yd. per hour respectively (plus bonuses) —and several of the awards made during 1920 are based on this principle. Timber and the Tariff. An effort to protect the New Zealand timber industry from the competition of foreign millers who can employ Chinese and Japanese labour in their mills was not well received by Parliament when the tariff schedules relating to timber import duties came under discussion. The case was well put by supporters of protection, including members of the Labour Party, who were impressed by the fact that "; the timber workers themselves saw the need for increased duties, so long as the consumer was

not prejudiced by increases in the cost of local timber. However, the opposition came from a number of farming members, and waxed so furious that nobody would have been surprised had an effort been made to divide the House on a proposal to take the duties off altogether. It was remarkable to hear the voice of the farmer in Parliament raised against an industry which alone has been singled out for price control within the country, while at the same time it has been denied the opportunity of enjoying world's parity For its product. Their singular inconsistency did not seem to occur to any of the dairying members, who have so strenuously fought for, and obtained at a cost of hundreds of thousands of pounds of taxpayers' money, the right to obtain for their product in New Zealand the free on board price for export. Nobody troubled to remind them of this change of attitude on a product which is not of the cow. One of the leading opponents ot increased duties on timber has since been prominent in urging the Government to "pay up " on its equalisation fund, the final distribution having been delayed pending complete audit of dairy factory accounts. The only consolation to be obtained from the new tariff is the protection which the Government, in case of need, can give the New Zealand timber industry if there is any attempt to dump foreign timber upon the local market.

The Outlook. Reduced shipping freights have given some encouragement to the New Zealand producer in starting the new season, and some readjustment of wages has also enabled the cost of production to be reduced. It is estimated that the freight reduction is equal to the cost of shearing the wool, and as prices appear to be improving for this.commodity, the outlook is not quite so bad as it appeared a few months ago. Butter, which greatly steadied the finances of the Dominion last season, is weakening, but the best authorities believe that the real state of the English market is not yet disclosed, and that it will not necessarily be so poor as current conditions indicate. Low prices have lessened land values, and stimulated production. The times are trying to town and country alike, but there is no feeling of despair as we face the New Year. The country has a record of production per head which scarcely any other country in the world can equal. Therefore, in times of world slump, it is on the soundest footing—even though that footing might not be so firm as we would like. We can mutually hearten each other under these circumstances with the time honoured greetings of the season— A MERRY CHRISTMAS AND PROSPERITY TO ALL IN THE COMING YEAR.