SUSTENANCE PAY.

Auckland Star, Volume LXVIII, Issue 23, 28 January 1937, Page 9

SUSTENANCE PAY.

FRAUDS NOT NUMEROUS.

MISTAKES THROUGH IGNORANCE

(By Telegraph—Press Association.)

WELLINGTON, Wednesday

"There is no suggestion of widespread abuse of the sustenance system bv unemployed persons or men partiallyemployed, although instances of deliberate fraud or wrongful receipt of relief pay through ignorance are frequently detected in various jfirts of the country," stated an official of the Labour Department to-day, in response to inquiries.

Apart from the recent New Plymouth case, where 20 out of 30 casual workers employed unloading a ship were guilty of making a false declaration of their earnings, there line! been only one instance where concerted action had been taken to defraud the Department. This had occurred in tho South Island a few months ago, and 12 men, all working for the same employer, were prosecuted and convicted.

A close check was kept on outside earnings of men in receipt of sustenance. When a case of wrongfully drawing sustenance money was detected the Department fully investigated it and decided whether or not it was wilful. Where the case was proved wilful the degree of seriousness was considered and the Department then decided whether to prosecute under the Employment Promotion Act or the Climes Act.

The system of checking earnings by sustenance men was as effective as could possibly be devised. Employers were working with the Department by submitting returns of wages paid. They realised the importance of preventing impositions on the Employment Fund, and were co-operating in safeguarding it.