THE DOLE SYSTEM

Ashburton Guardian, Volume 50, Issue 124, 7 March 1930, Page 5

THE DOLE SYSTEM

RELIEF OF UNEMPLOYED. * GOUNCIL ENTERS PROTEST. THE BURDEN OF TAXATION. The suggested introduction of the dole, system into New Zealand was discussed by the Ashburton County Council at its meeting today, the suggestion being opposed as it would be an > unbearable burden to the farming community. The Council' carried a resolution of . protest against the finding of the Committee. Tile chairman (Mr J. Carr) said the report of the Special Committee appointed 1 by the Goyernment to investigate the • unemployment problem in New Zealand, had lately been published, and required serious consideration. as, if brought into force, further burdens would be placed on the shoulders of the farming community. The constitution of the .Committee consisted of two representatives of each of "the employers, workers and Government. The farming community was not represented on the Committee. It was recommended that a sum of £700,000 be raised annually from various sources as follow: —Flat individual tax, £505,000; fiat tax of Id. in trie £ on incomes, £80,000: flat tax of Id in the £ on all undistributed profits of companies, £22,500; flat, tax. of 3-lGd 1 in the £ on the taxable balance of unimproved value of country lands as assessed for land tax, £67,500; local bodies’ contribution of 1 per cent, on general rates, £25,000; totalling £700,000. Consolidated fund, £350,000. The farmer would thus be g contributor under three headings:—Land tax, County rates, consolidated fund. The farmer was already staggering under a burden of taxation,' and any increase would he unbearable. The recent increase in the land tax Vesulted in the dismissal of many employees, and further dismissals were inevitable if taxation increased. . The proposals, if carried out, would' therefore cause additional unemployment, thus _ accentuating instead of relieving this difficult problem. The proposal to inaugrate in this young country a scheme of payment for unemployment would not only increase the difficulty but might tend to make many workmen less industrious and efficient, always having the option of a. dole to depend on. The solution was more likely obtainable in a reduction of taxation, harder work, greater production, ' accompanied by the utmost economy in public and private expenditure.

The chairman, continuing, said that such a suggestion to a. further imposition of land tax was not to be thought of. Mr R. Houston said it would tend to cause an'influx of people to-..take p.art in the dole.. The chairman, said that further taxation would be unthinkable, find an injustice. The farming community was already suffering from the downward trend of prices for produce. At present, in many cases, it was- almost impossible to pay the ordinary charges. Mr W. T. Lill' said he was pleased this matter had been brought up. The men who constituted the committee knew the position of the country. The community had been faced with an increasing advancement in the cost of living. There were hundreds of men who at present would be better off to receive the 14s a day and let the farming worries slide. The Government was urging men to go on to the land, yet, on the other hand, it was really driving them off. The land tax was such that further taxation would be a calamity, and would prevent increased production. Such taxes on produce must have a detrimental effect. The chairman said the comiriittee was not representative of the farming community. Mr J. Moore said he had given the matter consideration, and was of the opinion that the Arbitration Act *was responsible for much of the unemployment.

Mr F. Frampton said unemployment, was disastrous, and a great calamitv to those who were unemployed through no fault of their own. It was time the Council should protest .against such taxation. 1 '7 , . Mr Lill said the committee should t/ ascertain how these men, for whom it was intended work should he found, could be employed, and to ensure that they earn as much as they were paid. > That' would assist in ,solving the, problem. The chairman said that no doubt the fall in, the price of produce, and farming taxation, were responsible' for much of the unemployment. If the dole system were introduced it would increase unemployment. Mr H. E. Jessep said 60 or 70 per cent, of unemployment was in the cities. It was not reasonable to ask the country to shoulder the cities’ burdens. He did not think a protest would assist the position. He had' read in the newspapers that the -pre- , sent Government was stated to he the “worst Government for 50 years.” He thought there was some truth in, the statement, in view of* the present position of tlie farmer. / The chairman, said that the Council should protest against .the’ finding of the committee, ort the ground that.it was not representative of the farming community. ; Mr R. Houston: We should receive rhe statement.

Mr Lill: No. We must enter a protest. On the motion of Messrs Lill and Frampton, it was decided: 1 “That this Council protests against the formation and finding of the committee set up to go into the question of unemployment and the imposition of any further burden on the land. The Commission was not representative of the farmers, and the recommendations are such that could not be borne by the fanning community. Many farmers who pay special land-taxes would be able to employ two men with the money that they would have to pay toward the scheme. The Council is of opinion that the scheme will tend to increase unemployment.”