UNEMPLOYMENT

Press, Volume LXX, Issue 21319, 12 November 1934, Page 12

UNEMPLOYMENT

ADMINISTRATION OF F% MB BROMLEY REPLIES TO ! CRITICS [TUB FBBSS Special Berri«».] ■ ' i WELLINGTON, November u,! Replying to criticism levelled ag% the administration of the unenrplo, ment fund during the debate mS liament on the Native Commission's? port, the deputy-chairman of the fcemployment Board, Mr W. Brook said it was not true to say that penditure was carried out without ajj check or control. It was true, hoJ ever, that weaknesses in controlwen constantly being detected and pg, fected, and often higher administrating costs were involved. It was not to, criticism to demand perfect admini% tion and at the same time attack S j. ministration costs that were obvitajw most reasonably low. j

"Perfection in administrative ot». nisation can be assisted to a far greats extent by constructive criticism Utu by placid acquiescence," he said. ■<% does not follow, however, tbatpetfe. tion in administration will grow in proportion to the volume of crltlcbo. If that were so, it would follow thai the most perfect administration in an; country would be that concerned with unemplyoment relief. The point j, that the criticism is not aiwfy constructive or valuable. The critic who attacks the introduction.<fl chiney designed to check Wljd; c«i.| trol expenditure when it is expedient l to do so, and then infers that th«r» ii little or no check on expenditure ii not contributing towards better administration. In perfecting an organisation to cover the wide field (Jf'JctWities under the control of the'ynemployment Board, additional administrative expenditure has often'to b( faced. Although the present cort ot administering the Unemployment tm in New Zealand Is less than 3 Mr cent, of the fund handled, it U doubtful whether any phase of the unemployment question has been more severely criticised.

Work of Inspectors "During the year the fund trader the board's control was migmtnttd greatly by the appointment of wap, tax inspectors. The value to thefttpj was almost completely eclipsed by ftj critical attention given to trtvaUni expenses involved in the work of thtst inspectors. Who to-day has not head of UB 3J? form, requiring applicant fur relief to supply evidence in tuppttt of his claim. What a storm Of atticism this form has produced at intervals. It is not possible to state the number of attempts at fraud that hit been detected by the use of that enquiry sheet, but. they are very numerous, and many have had their sequel in the magistrate's courts. "To say that there is no check in the expenditure of the unemployment fund, meaning that the Unemployment Board has a free and uncontrolled hand to expend in whatever direction it may choose, is simply not correct and reveals an absence of practical knowledge. Take as an example tia building subsidy scheme, which te. often been criticised, and observe hw control over the fund is provided fa The board, having concluded tbatfe problem of employment would oe issisted by adding a stimulus to tbc building industry in the form of a. Bibsidy, drafts working details of the p» posed scheme. In addition to tin rules for operation, a statement mt. be prepared setting out the reason behind the proposal, an estimate of tte cost, and anticipated effect on emploj nient, as all the expenditure must-Nt the approval of the Minister' ft Finance. A copy of the proposal* s forwarded by the chairman of tin board to the Minister for Finance, flhs, having the advice of his departaot gives approval or suggests amendments. Approval having been obtained, a copy is then forwarded to the Controller and Auditor-Genetll, supported by the board's minute authorising the Echeme.

MisjJj?!>r Loans "Any voucher for payment requiring, as it does, approval of the audit, must thus conform with the rules for which approval has been obtained ■ fl ; it is a loan to a mining company wi development work, a report in Support of the application from the Miner Department must accompany the reauwl for approval forwarded to the Minister for Finance, and the contract for repayment is often drawn up by the department under the control of the Soli-citor-General. Payments under scheme 5 and grants to individual prospectOß are made through local bodies aw from local bodies' own funds. Beptfment is contingent on vouchers establishing to the satisfaction of the audit officer that the expenditure coma properly within the rules approved W the Minister for Finance, acting on the recommendation of the Unemployment Board. "It is therefore clear that it is not true to say that expenditure is earned out without any check or cofltrolt concluded Mr Bromley.

THE CREDIT BALANCB ; (PRESS ASSOCUTIOK TEUSORAJI.) • WELLINGTON, November Id. In the House to-day, Mr C. H. CJtoPj man (Lab., Wellington North) asked the Acting-Minister for EmploymO" (the Hon. J. A. Young) whether, » view of the fact that at September» 1934, the balance to credit in t» Unemployment Fund . amounted ™ £1,821.953, he would take immediate steps to increase the payments to t» unemployed. . ... Mr Young, in reply, said that, **"' the cash balance in the fund was » stated, the true balance after'deducing liabilities actually incurred but rw paid was approximately only & iSO P»That represented only about nve weeks' reserve of the allocation. . . It would therefore be appreciate that the board had not the surplus** serves available to expend which v Chapman quoted.