ECONOMIC WASTE?

Auckland Star, Volume LX, Issue 197, 21 August 1929, Page 12

ECONOMIC WASTE?

THE UNEMPLOYED PROBLEM. HOSPITAL BOARD'S POSITION. PRIME MINISTER'S LETTER. "It is a cleverly written letter, which is just a pure piece of bluff. The Government is shirking its responsibility in dealing with the unemployment question." This statement was made at yesterday's meeting of the Auckland Hospital Board by the chairman (Mr. W. Wallace), when a letter from the Prime Minister (Sir Joseph Ward), replying to the board's suggestion that unemployment should be tackled as a national issue, was read. "The unemployment problem is being dealt with by the Government as a national question in that employment is being found for large numbers on public works, in addition to special works, such as forestry," stated Sir Joseph. "I cannot agree, however, with your board that the relief of unemployment is entirely a national question, and should not become a charge on local rates. In my opinion, the assistance of local authorities in respect to overcoming unemployment is a necessary function of local government." "Not Economic Waste." Sir Joseph added that in the year ended March 31, 1928, local authorities in the Dominion —excluding hospital boards—raised unemployment loans amounting to £147,466, no portion of which was in the Auckland city area. The total amount of unemployment loans raised by local authorities in the two years ended March 31, 1929, was £250,000, £10,000 of which was raised by the Auckland City Council, and £96,000 by the Wellington City Council. A further £35,000 was . now being raised in Wellington, the direct effect of which was the assumption by the ratepayers of the burden for unemployment relief in the district. Under this procedure the expenditure created assets and was not '"'economic waste." Where, however, this method .was not adopted the burden fell on the ratepayers -in the form of outdoor relief. The statement made that the Auckland board dealt with 1460 cases of unemployed breadwinners for the V2ar ended March 31, 1928, out of a Dominion total of 3670, did not set out the full facts of the case or the burden carried by the ratepayers in the various districts. The indications were that unemployment was being dealt with from a different angle in other districts. It was noticed that the hospital rate for maintenance purposes in the Auckland district was the lowest of the four main centres, notwithstanding the increased cost of unemployment relief. Had the board not decreased its maintenance levy this year, it could have collected approximately £9200 more maintenance revenue to meet the cost of unemployment relief. ' Under these circumstances it was not possible to deal with any proposal for further special consideration other than that provided for in the Hospitals Act. The Government, however, was prepared to subsidise works carried out by local bodies in the Auckland district to relieve unemployment in terms of the existing authorities for this purpose, and thus reduce the pressure on the board for outdoor relief. - "A Smoke Screen." Mr. Wallace said it seemed that the Prime Minister wanted to put the responsibility for the unemployment on the local bodies. Auckland had carried out a large programme of works, but practically all of it had been done without assistance from the Government. Admittedlv the board had reduced its levy, but that was due to its large capital value,'"Which, had been built up by careful administration. The Prime Minister's reply was describedjby Mr. W. C. Wood as "something in the nature of a smoke screen." He hoped the board, when framing its reply to Sir Joseph, would reiterate the belief that the unemployment question should be dealt with on *a national basis. Mr. W. K. Howitt said that if the giving of relief was not economic waste then he did not know what waste was. The reply should show Sir Joseph that he was not quite playing, the game. Mr. E. H. Potter pointed out that while Auckland local bodies were charged with not prosecuting unemployment works; as they should, it had to be remembered that the Power Board and Transport Board-were carrying out large loan works. . / j The matter was referred to .the iinance committee to frame V suitable reply to the Prime Minister. ...... ...