FIVE POINTS

Ashburton Guardian, Volume 56, Issue 98, 6 February 1936, Page 7

FIVE POINTS

THE UNEMPLOYED POLICY. NATIONAL DEVELOPMENT. (Per Press Association.) “AUCKLAND, Feb. 5. “The first Act of this Government taken immediately after being sv.om into office, was to make provision ioi a Christmas bonus to the unemp ojec to ensure that the minimum amount of hardship was experienced during that festive season; and a promise was then made that th« Government would, immediately after the holidays, undertiie u complete survey oi the wiiolo policy governing the administration of unemployment reliei,” said the Hon. H. T. Armstrong to-day in a statement on the unemployed position. “I am now in a position to say that I have, with the co-operation oi administrative officers, been able to cany out what might be termed a preliminary survey. “Further, following lentliy consideration by Cabinet of my findings and proposals, I am enabled to make known details of some of the immediate steps to he taken in attacking this great' problem. “This survey has not been confined to schemes previously introduced to deal with the immediate question of relief. It has embraced all other revelant factors associated with progressive and productive employment. “My investigation began with a complete review of the statutory provisions and of the administration. This examination has revealed that immediate legislative changes arc not necessary to give provisional elfcct to the Government’s policy for the reasons that existing legislation ensures complete governmental control of both the administration and the fund, inasmuch as the Minister of Labour is chairman of the Unemployment Board, which was constituted to assist in the administration ; and that no moneys can be paid out of the fund except by direction of the Minister of Finance.

Organised Development. “The complete reorganisation of the administration which 1 have proposed and which ( has been authorised by Cabinet aims to make the machinery capable of giving effect to organised national development, instead of merely coping with the evils arising out of the depression. “National development is inevitably related to working conditions, wages and all other factors associated with progressive and productive employment. Consequently it has been deeded that the whole administration shall be carried out under the auspices of the Labour Department. This change is calculated to result in action being diverted from the unsatisfactory aspect of ‘unemployment’ as such. In short, the department will be primarily an employment department instead of a relief department. This phase of the changed policy will be dealt with more fully in another statement.” Dealing with the establishment of a “bureau of industry,” Mr Armstrong said: “I consider it is of value at this time to set out in some detail this problem as my Government found it on assuming office. “The number of persons in receipt of relief on December 21 and definitely without any contract ot employment whatever was 35,653. Ju. addition to this number there were 9.1 engaged for full-time on some- contract of employment (but not in every case on standard wages) and in receipt of some assistance from the Unemployment Fund.

“The average weekly income into the fund folloAving on the reduction of taxation from lOd in the £ to 8d is £66,346. There has been, of course, a higher income during the last year, assisted by the cash surplus as at the commencement of the financial year and the fact that the lOd in the £ tax operated until September 36. “But the Aveekly expenditure at the present basis exceeds £IOO,OOO. It Avill be seen, therefore that the problem, summarised, is: There are in excess of 35,000 men Avitliout any contract of employment. There are more than 21,000 men kept in employment by subsidies from the Unemployment Fluid. The Aveekly income; Avith the reduced tax. is in the order of £67,000; while the Aveekly expenditure exceeds £IOO,OOO. “On top of this is the essential necessity of providing gainful employment for such of those on relief Avho are capable of undertaing Avorlc. “The change, therefore, toAvard decent employment can anly bo gradual, and the cooperation of all employers of labour, in both primary and secondary industries, is urgently sought. “This is not an opportune time for discontinuing any of the independent private efforts of giving support that have characterised the period of the depression.

Task Work To Cease. “Belief work that has no other merit than nroviding a task to be performed in exchange for sustenance is to be definitely abolished. In future, all work, Avhere the AvhoTe or any part of the cost is met from the Unemployment Fund, will, before approval is granted, require to provide Avagcs at least equivalent to tlie national standard for the class of avoilc performed. “Gainful employment is the only cure for unemployment, and in future all branches of the State’s activities Avill be influenced by the guiding principle of accelerating the transfer of men back from the unemployment register to normal channels of employment. Immediate steps to be taken to gain this end Avill be:—

3 National development Avorks that will be of a reproductive nature. 2. Expansion of land development. ;i Development of secondary industries and expansion of existing industries under economic organisation. 4. Gold prospecting, Avitli a progressive change from the grub-staking scheme to systematic prospecting for reefs under expert supervision. 5. Encouragement to local bodies to inaugurate rcp.rodutcive or utility A’.' oiks under standard conditions. “Where work cannot be found, sustenance payments will be continued

under amended rules, providing, inter alia, for variation in tlie scales between the cities and country to be discontinued, the country scales to he raised to the present city scale as soon as the necessary administrative procedure can he formulated. Improvements in the rules governing eligibility for sustenance, particularly in regard to maximum private earnings before sustenance is affected will be announced in detail to the various administrative officers throughout the Dominion. Such of those single men’s relief camps as are still in existence, and where ic is impossible to convert them into tinned at an early date, standard public works, will be disconWomcn Unemployed. “The question of relief to unemployed women is still under consideration. In tlie meantime, steps are being taken to strengthen the women’s local administrative committees with a view to assisting to a more complete review of the conditions before any substantial alterations are attempted; hut here, again, the main principle must and will ho the transfer of registered applicants from relief back into gainful employment.”