The Auckland Star: WITH WHICH ARE INCORPORATED WEDNESDAY, AUGUST 1, 1923. THE UNEMPLOYED PROBLEM.

Auckland Star, Volume LIV, Issue 182, 1 August 1923, Page 4

The Auckland Star: WITH WHICH ARE INCORPORATED

WEDNESDAY, AUGUST 1, 1923. THE UNEMPLOYED PROBLEM.

Per «*# nw ifcaf toefct eatietmnat. For the wrong that need* retitlanet. For the future in the distance. And the good thmt toe can da.

Yesterday's discussion in the House on the National Provident Fund report developed at one stage Into a controversy over insurance against unemployment. The most definite proposal was put forward by several Labour members, who urged the Government to establish a system of unemployment insurance on the lines already laid down in Queensland. The Unemployed Workers Act ■ passed by the Theodore Government set up an insurance fund to which contributions are made in certain proportions by the State, the workers, and the employers; and it also provided that any worker having registered at a State Labour Exchange and having failed to secure employment within a fortnight, would have a right to a "sustenance allowance" while out of work. There are other clause* in the Queensland Act, of a highly debatable character, authorising the enforcement of levies against employers who, in the opinion of the : Unemployment Council, have not done what they might reasonably be expected to do in the way of relieving unemployment —whatever this may mean. But we have no reason to assume that Mr. Lee and Mr. Fraser were advocating the Queensland Act in its original and complete form. What they evidently want is public recognition of the principle that it is the duty of the State and of he community to see that employment is provided for willing hands, and, failing this, that some public provision shall be made for the maintenance of the workless worker, and they can quote a i considerable amount of evidence in support of their view. We gather from the remarks made by the Minister of Pensions that the Government is now contemplating a scheme to deal with the unemployment problem on the lines of "a universal contributory pension system covering unemployment insurance," and Mr. Anderson intimated that the whole question would be considered by Ministers during the recess with a view to subsequent legislation. But if we may draw what eeems to be a legitimate inference from the tone Massey's , remarks, he is not inclined to strike out very boldly in this direction. He talked quite reasonably about the need for caution and economy, and pointed to the huge sums expended by this country every year on pensions and superannuation. But we hardly think that he was' on such safe ground when he drew a comparison, to New Zealand's advantage, between our own system of State aid and the British National Insurance scheme set up before the war by Mr. Asquith and Mr. Lloyd George. Mr. Maesey saye that this geheme "virtually ceased to exist during the war," and had not achieved the expected results. But it must be remembered, in the first place, that the scheme was cub. jected to the most bitter attacks and the most unscrupulous misrepresentation by the Tory Press for purely political reasons; while the conditions produced by the war were such that no system of State aid previously established could have hoped to survive without radical modifications. Dr. McNamara, while Minister of Labour, publicly stated that before the post-war depression of 1920 set in the National Insurance scheme included four million workers. But within a very few months the number was vastly increased, and before the end of 1922 no less than twelve million workers were covered *>y the scheme. I n view of. the enormous number of new admla-

f ,iOM * n * <*• general lack of work It wu topoMibl. to <u n y "unemployment benefit" eves to those who had only just tofun to contribute to the fund; and Dγ MeXamara estimated that in the four years 1920-4 not U M than £160,000,000 will have been disbursed in allowances under the National Insurance Act. But this does not represent the whole effort made by the Britieh Government on behalf of the unemployed. The total amount distributed in the form of grants in aid of itages and maintenance for unemployed has been put down at nearly £100,000,000 a year during the past two years. The importance of all these developments—pensions and superannuation funds. National Ineurance, and "doles"—lies in their bearing on the great question of the general responsibility for the unemployed; and it can hardly be denied that very rapid and sweeping changes have taken place in recent years in public opinion on this subject. It is now admitted by many leading economists, politicians, and commercial men that an obligation lies upon the community and the State to provide opportunities for employment to all willing workers, and we have quoted on more than one occasion the views of eminent Liberals at Home, to the effect that, as the presence of "a floating body of unemployed" is essential to the existence and progress of. the Capitalist system, therefore the burden of maintaining or assisting the unemployed should be thrown largely upon the capitalist and employing classes in the industries to which they are attached.