RELIEF PAY.

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 8

RELIEF PAY.

LOWER RATES LIKELY. SUMMER ECONOMIES. ALLOCATIONS REDUCED. CONSERVING REVENUE. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Hue day. In accordance with plain hints given in Ministerial circles, an early announcement indicating a reduction in the scale of relief payments which has operated throughout the winter may be expected.

Owing to the abnormal conditions which prevailed during the past four months, the allocations were increased substantially to cope with the large number of registrations, which were a feature of the unemployment problem during the winter. This placed an added drain on the resources of the unemployment fund to such an extent that, at one juncture, fears were expressed openly that, with the maintenance of the existing standard, an increase in the wages tax would be inevitable. However, the prudent conservation of Uie revenue available, together with the fact that the receipts exceeded the estimate, enabled the Unemployment Board to forecast a -surplus and to indicate that there would be no increase in the wages tax. It had been hoped that, with the arrival of seasonal occupations and the possibility of an creasing number of men being absorbed into private employment, it would be possible, before the commencement of the new financial year, to review the amount of the impost.

Since the arrival of spring there has been an unobtrusive lowering of the allocations throughout New Zealand, due in some instances to an easing off of the requirements in particular districts. It has been laid down that, if the stability of the fund is to be maintained, this tapering-off policy must be pursued for the remainder of the summer months;* and it has been stated that, if the measures of relief remained fixed, the question of increasing the 1/ in the £ tax would become one for serious consideration. There have been rumours that a 50 per cent reduction in relief rates of pay is contemplated, but there is no foundation for this assumption. It is understood, however, that there will be reductions.