NOT TO BE INCREASED

Ashburton Guardian, Volume 54, Issue 195, 31 May 1934, Page 3

NOT TO BE INCREASED

THE WAGES TAX.

NO LOAN PROPOSAL.

CABINET AND UNEMPLOYMENT,

(Per Press Association)

WELLINGTON, May 30

Unemployment was the sole subject for discussion at Cabinet meetings which began this morning and ended shortly before 0 o'clock to-night. A mid-day statement by tlie Prime Minister indicated that all phases of the question were being considered and the fullest information was placed before Ministers. However, this intensive overhaul had not been completed by the evening and more attention is to be given to it by all Mim isters.

It was stated to-night that definite decisions had not been reached and that it was impossible to indicate fresh developments in connection with handling the problem. Ministers show concern not only over the demands of relief workers for extended benefit, but for contributors to the Unemployment Fund. Heavy Enough Burden. "You can definitely state," said one Minister to-night, "that Cabinet is against any increase in the wage tax. It is quite a heavy enough burden now." If the financial position allowed, the Government, it is well known, would attempt to relieve the tax , burden, chough at the moment this appears to be impracticable. However, at the first opportunity the Minister of Employment would like to see some diminution made in the tax payable by women and girls. Consideration has been given to \ a variable rate, according to wages earned, but there is no effective way of operating any graduated scale haying relation to earnings, which are a highly variable factor with a majority oi contributors. Great interest was aroused over reported references by the Minister of Employment when in Auckland regarding tho possibility of extending the board's resources by loan money. This is not before Cabinet and the Ministor himself states that there has been misconception over the matter. Tho only explanation of the origin of this interesting report is that during crosstalk with a deputationist who advocated some form of free credit, the Minister made tho general comment that it meant borrowing, but it is clear he did not intend to convey the impression that the v Government was seriously considering financing unemployed relief through loans. Significant Statements. This is the period of the year when improved allocations are being made, to country centres in accordance with the Unemployment Board's long-estab-lished policy. If there will be additional concessions they cannot be disclosed until the Minister of Employment is able to prepare a full statement of the position after discussion with responsible officers. The Prime Minister has this ,week, in a speech at the opening of the Waikato Winter Show, added corroboration to the statements of Mr Hamilton regarding the importance of providing employment. Special significance should therefore be attached to these recent Ministerial statements on the subject. One advantage of' assisting established industries to' extend their operations is that the resulting additional wage disbursements carry fresh revenue to the Unemployment Fund for the relief of those unable to get their usual work.

COMPLETE INVESTIGATION.

STATEMENT BY MR FORBES. WELLINGTON, May 30. An important statement on unemployment relief policy in New Zealand is to be made shortly according to an announcement by the Prime Minister this evening, following a meeting of Cabinet. Mr Forbes said the Government was making a full survey of the unemployment problem and was examining the various schemes at present in operation. It desired to do all it possibly could to improve generally the_position of those who were, through adverse economic circumstances, a charge on the Unemployment Fund. "At tho same time," Mr Forbes added, "it lias to be remembered that the Government is more or less limited in its actions by the amount of money that is available. Cabinet is making a complete investigation of the position in the hope of being able to better the position of the unemployed."