INTERNAL LOAN?

Auckland Star, Volume LXIII, Issue 302, 21 December 1932, Page 8

INTERNAL LOAN?

ESSENTIAL WORKS.

MAYOR'S SUGGESTION.

FOfl UNEMPLOYMENT IMPASSE

An important statement wae made by the Mayor of Auckland, Mr. G. W. Hutchison, upon his return to-day from Wellington, where he went to protest against the 10 per cent cut in relief wages and sustenance, and also to see what help might be expected from the Unemployment Board towards the plan of works suggested by the City Council. The Mayor urgee the consideration of the raisin"- of an internal loan for the resumption of both national and public worke of an essential nature.

"I was not able to see the actingMinister of Employment," eaid the Mayor, "but I had an interview with Mr. Jessep, the deputy-chairman, and Mr. Bromley, a member of the Unemployment Board. The deputy-chairman and Mr. Bromley were already aware of the concern felt in Auckland resulting from the 10 per cent cut on relief wages and sustenance, and it was only necessary for me to stress the widespread community opposition expressed against the cut.

"In reply, I was informed that it was not possible at the moment to withdraw the* cut on account of the difficulty the board was experiencing in making provision for all the unemployed on the register, and, in fact, it was stated that the board'e income was some £10,000 per week less than its allocations, which the board could not carry indefinitely. The whole matter, however, was under consideration, and the problem presented by the increasing demande upon the board's funds was under review, and it was hoped to bring about improved conditions in the New Year. City Council Scheme. "The deputy-chairman and Mr. Bromley expressed appreciation of the scheme put forward by the City Counjil to provide constructive work at current rates, and indicated that they would assist the council's scheme to the fullest possible extent. Details were discussed, and these will be reported by mo to the council in due course. In a subsequent interview with the Right Hon. J. G. Coates, he also indicated that the problem of employment wae before the Government, and I understood that this wae one of the matters that was receiving urgent consideration. Two Ways.

"It seems to me that the problem has resolved, itself into two major considerations: Either still more taxation will need to be imposed to provide the necessary funds to enable more adequate rates to be paid for unemployment work, or the Government must go to the country for an internal loan for the resumption of both national and local public works of an essential nature, the interest and sinking fund to come out of unemployment taxation.

"It will be generally agreed that taxpayers are already bearing the limit of taxation burden, and the latter proposal, therefore, is the one that should be considered; even at higher rates, the unemployed cannot be expected to put their hearts into some of the work which they are asked to do, but a resumption of useful work would react for the benefit of the whole community. ■ For this reason I heartily disagree with the recommendation made by the National Economy Commission that future capital worke must 'be carried on out of revenue." .