As regards distribution and wages, in the first place we should adhere
to our traditional policy, developing the system of differential and
graduated taxation, and we should be prepared, if unequal distribution
of wealth continues, to limit further the right of inheritance. This is
not a new Liberal doctrine: it is many decades old. On the question of
wages we have to recognise that unless we can secure an increase in
terms of food and other commodities of the national production the State
cannot radically modify the general standard of living in the country;
or by administrative action raise the level of wages which economic
conditions are imposing on us. But the State can and should enforce a
minimum in certain industries, provided that minimum is reasonably in
harmony with the competitive level of wages. Such action can prevent
workers whose economic position is not a strong one--and this applies
particularly to many women's employment--from being compelled to accept
wages substantially less than the current standard. I therefore welcome
the gradual extension of the Trade Board system, provided it follows the
general principle recommended in the Cave Report--that the community
should use its full powers of compulsion only in regard to the minimum,
and that so far as all other classes of wages are concerned, the State
should encourage collective bargaining. With this proviso, compulsory
enforcement of a minimum could also be extended to the workpeople
covered by Whitley Councils.
As regards all wages above the minimum the Cave Committee recommended
that, provided they are reached by agreement on the Board, and provided
that a sufficiently large proportion of the Board concur, the wage so
determined shall be enforced by civil process, whereas in the cases of
the minimum, the rates would be determined if necessary by arbitration
of the State-appointed members of the Board, and non-payment would be a
penal offence. The Trade Boards now cover three million workers. Two
million are in occupations for which Trade Boards are under
consideration, and there are a further two million under Industrial
Councils or Whitley Councils. If State powers are to be employed in
trades employing seven millions of the eighteen million wage-earners of
the country, the scope of those powers needs to be very carefully
defined.