"UNEMPLOYMENT AN OPEN SORE"

Press, Volume LXXIII, Issue 22201, 18 September 1937, Page 16

"UNEMPLOYMENT AN OPEN SORE"

Mr Forbes Critical ABSORPTION OF MORE MEN BY INDUSTRY [From Our Parliamentary Reporter] WELLINGTON, September 17. Measures adopted by the previous Government to meet conditions arising out of the recent economic depression were defended by the Rt. Hon. G. W. Forbes during the Address-in-Reply debate in the House of Representatives to-day. He said that in 1931 the then Government was facing a prospective deficit of more than £9,000,000, and he wondered what the present administration would have done in such circumstances. "As the Government, we went through the leanest time this country has ever known," said Mr Forbes. "When wc left office we were able to leave sufficient to pay all expenses ana leave a surplus. Since then revenue has been rising. I wonder how this Government will face the position when it has to economise—the real test of a Government comes in a time cf difficulty. I am not saying it will not face such a situation but it has not vet the opportunity." A "thorough examination of the unemployment problem with a view to finding some more effective method of dealing with the situation was advocated by Mr Forbes. Something should be done, he said, to accelerate the absorption of unemployed by industry. Investigation should be made with determination to apply the remedies that were found necessary, even if it meant a reduction in taxation to enable Industry to employ extra labour. Mr Forbes said that in spite of the great improvement in the economic position of the country there was still an .army of unemployed. When the members of the Government were in Opposition they charged the previous Government with creating a nation of navvies as a result of the method adopted with unemployment. He admitted there was that weakness, but immediate relief had to be provided. The problem had not been tackled in the way one had been led to believe it would be dealt with by the present Government. When in Opposition the Government had said there should be a thorough and exhaustive examination into the whole problem. The time had come for such an examination with a view to arriving at a more satisfactory solution and bringing about a greater rense of security to those out of work. The method adopted by the Government was enly aggravating the problem. If the Government could divest itself of its bias against employers and what it called the leisured class, it would probably make some headway. "Unemployment is an open sore in New Zealand to-day—a sore that is draining the vitality of this country." yaid Mr Forbes. "We do not want a nation of navvies. The Government can get no satisfaction from the fact that absorption of unemployed into industry is so slow."