NEW HOUSES.

Auckland Star, Volume LXVII, Issue 102, 1 May 1936, Page 11

NEW HOUSES.

GOVERNMENT SCHEME

UNEMPLOYMENT SOLUTION?

UPPER HOTJSE DISCUSSION.

(.By Telegraph.—Parliamentary Reporter.) WELLINGTON, Thursday.

The important part tlie Government's | housing scheme will play in the relief of unemployment in New Zealand was emphasised by the Hon. Mark Fagan when moving the second reading of the Employment Promotion Bill in tlu; Legislative Council. At the outset Mr. Fagan said that he did not propose to criticise the Unemployment Board. During the six years of its operations the board had done many things that one would disagree with, but it was only fair to say that the board had done much valuable work. It had tackled the job when unemployment was a new problem, and it had had to break new ground. It would be the aim of tlie Government to bring about a, state of affairs in which there would be no relief work. The bill was the first step, and there were many more steps to come. In addition to placing men on works of a public nature, and in encouraging secondary industries, it was the intention of the Government to embark on the housing scheme. "I place most confidence in the housing scheme," said Mr. Fagan. He recalled his visit to Britain last year, and said that the claim had been made that Great Britain had reduced unemployment from 4,000,000 to 2,000,000. lie had made investigations as to how that had .been accomplished, and all his investigations led him back to the one end. During the slump conditions had been such in Britain that the banks had refused to accept deposits 011 account of accumulation of funds. Then someone started a building scheme and it had expanded so that England, Scotland and Wales were being rebuilt. A high tariff had been put against cheap commodities coming from the Continent, : and Britain's industries had been pro- ! tccted. In Britain they claimed that ■ they had directly absorbed 800,000 people into the building industry alone, 1 and with subsidiary industries that • meant another 800,000 absorbed in--1 directly. ' Thousands of Houses.'

"We will succeed in absorbing many of our able-bodied unemployed on public works, but when we start a housing scheme —and we very shortly willthousands of houses will be built in both islands, and for every unemployed worker we absorb on public works and railway construction the housing scheme will probably absorb six men or more. A building .scheme is necessary, and it inwt come. 1 attribute more importance and hope to the housing scheme for the absorption of unemployed labour thai! any other scheme in sight at the moment. The Hon. W. 11. McTntvre (Nelson) doubted whether a building scheme would solve the unemployment problem. Mr. Pagan: I did not say that it would be a permanent solution. Mr. Mclntyre stressed the importance of the development of secondary industries. The Hon. P. E. Lark (Auckland) said that more had been done through the Unemployment Board to create unemployment rather than to try and check tin; growth of unemployment. Not a local" body in New Zealand had not exploited the Act.

The Hon. R. Musters (Taranaki) contended that -Mr. Lark's contention was not correct, and he quoted instances where the Unemployment Board had subsidised industries. He said that the building subsidy had been of great value lo relief workers.

'['lie lion. W. W. Snodgrass (Nelson) asked the Government to consider exempting nurses ll'oin tlie unemployment tax. The Hon. R. McCallum (Marlborough), referring to the 800,000 men put into employment, as stated by Mi', iagan, said tiutf that had been brought about as the result of private employment. He advocated increased land settlement on a smaller scale. Replying, Mr. Eagan said that in two vears and eight months the Government had to go to the electors, and the measure of success of its administration would depend largely on their success in dealing with the unemployment problem. °"If it does not solve that it will have solved little else," lie saul. Regarding secondary industries, Mr. Pagan said that a long view must be taken. There were only 1,500,000 people ill New Zealand, and if expansion were carried to a point where production exceeded consumption they would not get vej, v far. The Government was taking the long view. The bill was read a second time.