I move:—
That the Emergency Powers (No. 83) Order, 1941, tabled on May 8th, 1941, be and is hereby annulled.
The object of this motion is to convince the House that it was unwise economics and bad national policy for the Government to make this Emergency Powers Order. At the outset, it may be desirable to correct a prevailing misconception as to the purpose of the order. It has been referred to by Ministers and by the Press as a standstill order but, of course, it has none of the characteristics of a standstill order. For instance, it does not prevent a reduction of wages, it does not prevent large sections of workers being put on half-time, it does not guarantee that workers will hold the jobs which they had on 7th May, 1941. It does none of these things; it merely keeps wage's low, and keeps low wages below the subsistence level.
It may be thought, reference to the wages paid to certain classes of workers in employment, that we generally have a high wage-level in this country, but an examination of industrial classifications will disprove any such erroneous contention. For instance, if we take as an example the engineering industry and examine its wages bill we find that in 1939 the average wage for male workers in that industry was 54/1 per week. If we take the linen, cotton and jute industry as another example—and these are average samples of wage scales industries—the average wage in 1939 was 45/7 per week. If we go to industries which are monopolised in a large measure by women and ascertain their wage levels, we find that, spread over the year. these industries are rarely capable of providing an average wage of 30/- a week to the operatives engaged therein. If we take the Census of Production—produced officially—and examine the wage scales of industrial workers, we find that the proportion earning more than 60/- per week over a year or over a period of years is negligible, compared with the large number of workers, male and female, who are earning on an average substantially less than that figure.
This order takes no cognisance whatever of the wage scales in any particular industry. If it finds workers sweated in an industry then it says, by implication, that the sweating is to continue. If it finds workers in an industry where wages are higher but still unsatisfactory, it preserves that condition of affairs.
In respect of a large number of occupations covered by the order, in no case does it provide for any increase whatever over the scale of wages paid on 7th May, 1941. For instance, in any particular town or in any particular section of industry, if there should happen to be a single employer who is regarded generally by other employers as paying a low rate of wages and who on that account is taking an unfair advantage of his own colleagues in that industry, this order described as a stabilisation order piovides that that bad employer, notwithstanding objections by his own colleagues, notwithstanding the efforts of trade unions to raise the wages, can still continue to pay the low rate of wages and it is made an offence for him to increase them even if he now desires to do so.
In other words, if in a particular town there are two factories, one paying a recognised trade union rate of wages and the other paying less than that, and if the unions want the nonunion factory to pay rates comparable to the union factory, and if the employers in the union factory desire that their competitors also should be required to pay wages equal to those in the union factory, this order prevents the bad employer being compelled, either by force of public opinion, by the efforts of trade unions or by the influence of his fellow employer, to raise his rate of wages above the low level in operation on 7th May, 1941. This order does everything possible—and does it very efficiently and effectively—to give every security to the bad employer. It protects him against the force of public opinion, and against trade union action.
Any of these new industrialists who came into this country in recent years from any part of the world—some of whom never were anxious to recognise the necessity to pay trade union rates of wages—and who may have succeeded up to the 7th May this year in avoiding their responsibilities in that connection, can continue to avoid them during the currency of this order. It protects them against any demand for an increase in wages in respect of their lowly-paid employees.
An order of this kind would be difficult to justify in any circumstances, because it represents a complete reversal of the normal process of improvement of the standard of living and an effort to reverse the whole social tendency towards a better standard of life. But the order takes on a new viciousness when we find it made operative in a period when prices have risen and continue to rise with such alarming rapidity. If we take the cost-of-living index figure for July, 1914, as 100, the official cost-of-living index figure in August, 1939, was 173. If we trace the movement of the index figure from August, 1939, to February, 1941, we find that the figure moved from 173 in August, 1939, to 218 in February, 1941, an increase of 26 per cent. No group of workers in this country have received in that period a wage increase of anything approaching 26 per cent. In fact, I would say that the general level of such wage increases as took place between those two periods was on an average not more than about 5 per cent. So that, while workers' wages have in some instances increased by 5 per cent., according to the Government's official figures the cost-of-living index figure, which represents the movement in the price of commodities, has risen by 26 per cent.
During that period we have, of course, seen the most ineffective methods applied to dealing with price movements. Away back in September, 1939, we had a grandiose declaration by the Minister for Supplies with regard to what was described as a standstill order in respect of prices, and pegging down prices to the level in operation in the last days of August, 1939. But since then we have seen one commodity after another removed from the scope of the prices standstill order, and, so far have some of them been removed from the scope of that order that the price of these commodities in many instances has increased by 50, 80, and in some instances 100 per cent. No effective steps have been taken to control prices in this country.
No effective measures have been taken against hoarders who exploited the shortage of commodities and then try to charge the fancy prices which are being charged for those scarce commodities to-day. Tea is still being offered to the public at 6/- and 7/- per lb. You can get almost any price for white flour, owing to the activities of certain racketeers who appear to enjoy Ministerial benediction in this country. Petrol is being offered to the public at 10/- a gallon, and some people in certain areas are looking for 70/- for a ton of turf. All that is happening; Deputies know it is happening; members of the public know it is happening. The only people who do not know it is happening are the people we pay and expect to know it is happening, and expect to deal with the situation. Any effort effectively to control prices has long since been abandoned.
The Minister for Supplies seems to have resigned himself to complete inability to take any effective steps to control prices. The Minister does not seem to know on what commodity tlie next increase in price is likely to take place. The Minister is presented with demands for increases in prices and, in the most baby-like fashion, he authorises the increases. That is why the cost of living has risen by no less than 26 per cent. in a period of 15 months. If one is to judge by indications, and if one is to reflect on the incompetent methods employed for controlling prices, one may be sure that during the next 15 months there will be a still greater increase in prices than during the past 15 months.
Recently the Minister for Justice was asked in this House to introduce legislation to control the rents of houses. Wages are prevented from rising under this order; house rents may still rise notwithstanding this order or any order. Of course there is now only a small number of houses within the scope of the Rent Restriction Acts. Although the Government made an order of this kind keeping wages low, the Minister for Justice the other day refused to make an order to keep rents even at their pre-war level; so that anybody who cares to speculate in house purchase or in the letting of houses in tenements or in the conversion of those houses into what are described as self-contained flats has the full permission of the Government, and the Minister for Justice in particular, to charge any rent he likes. Not only is he not prevented by any section of this order from doing so, but we have not a single order in operation which prevents a racketeer of that kind exacting any rent he can from those who, in present circumstances, have perforce to resort to the tenancy of houses owned by such people.
It is clear to anybody who knows the position that this country is the Mecca of profiteers. No country in the world treats them with such kindliness and such tenderness. If you ask the Minister to deal with profiteering, it would seem as if the profiteer was a kind of national apostle; the Minister gets indignant usually, gets vituperafive, and proceeds to denounce anyone who suggests that this kind of national hammerheaded shark ought to be asked to yield up any portion of his ill-gotten gains in a crisis such as that through which we are now passing.
I should like to know what is the real purpose of this order. I am bewildered by the explanations given by different Ministers from time to time. I should like to get some authoritative declaration from the Government as to what the purpose of the order is. We are told by one Minister that the object is to prevent inflation. The person who talks of an order of this kind preventing inflation has not yet reached the kindergarten stage of economics. It is a well-established fact that you cannot have inflation where yon have unused national resources. This country abounds in unused national resources, which, if labour were applied to them, would give us new sources of wealth and new national assets. So long as we have unused resources of that kind, unused labour power, and instruments of production, it is sheer economic heresy to talk of the possibility of inflation. We can only get inflation when we have used up our national resources and cannot create new wealth against the new money put into circulation. I suspect that the purpose of the order is frankly and avowedly, to keep prices. —wages down.