Melbourne, June 30, Australian ° economic "conditions have steadily improved since 1931, when the Arbitration Court ordered 10 per cent. reduction in the basle wage. Trade and Industry have en-Joyed increasing prosperity in- the bast two years, and prices have risen, with the result that real wages. have fallen to the lowest level since 1911, This rather anomalous aspect of renewed prosperity will be adjusted a judgment of the Arbitration Court, on the appeal of 52. unions, which wilt increase the wages of about 600,000 workers.
The average increase throughout Australia will be 8 shillings per week, though the amount varies slightly cording to cost-of-living Index figures the various States, The total Me crease thus distributed in wages Is estimated at £6,000,000 per annum, fand all sections of the business com: munity are busily engaged in computing the probable effects of the award, While it is generally apprecia that the workers should share In Increased national income as trade expands, there is uncertainty regard {ng the effect of the higher wages bill fon business activity." The higher purchasing power of the workers should expand the local market, and the Court explained that it inclined to the opinion of local economists thatthe "diversion of profits from Investment in capital. goods to consumption goods would correct the tendency to boom conditions, Several Disadvantages On the other hand there are certain disadvantages. Prices have already shown a tendency to rise, State industries like the railways, which have been mainly responsible for budget deficits, will be further burdened by the higher wages, and increased industrial "costs will automatically reduce the degree of tariff protection enjoyed by local manufacturers, Many manufacturers, while ad~ mitting that the higher wages are fully "justified, contend that thei should be a proportionate increase in tariff 40 maintain "the former level of protection. This view Is apparently not shared by the Twrllf Board, which recommended a substantial reduction of duties on a nur ber of items a few: days after. the puibllcation of the wages award, These Feductions teem designed to protect the interests of consumers, 'Most industries have taken a vantage of protection to increase their efficiency, and can now compete with Imports on satisfactory terms, but a few Industries have failed to' reduce prices, and the lower duties will apply the spur of competition to make them justify the protection they receive,
Text read from the printed page and cleaned; old type leaves the occasional error.