The Dominion MONDAY, NOVEMBER 4, 1929. STANDARD WAGES MULTIPLY “UNEMPLOYED"

Dominion, Volume 23, Issue 34, 4 November 1929, Page 10

The Dominion MONDAY, NOVEMBER 4, 1929. STANDARD WAGES MULTIPLY “UNEMPLOYED"

The striking fact that emerges from statement regarding unemployment is that, although 5664 men have been placed in^the, past month, the registered' number of unemployed has been reduced scarcely at all. The figures show that there were 2466 on the registers on September 30 and on October 31 the number was 2299. It is hoped to reduce this latter figure at once, but probably fresh registrations will still keep the total ; above 2000 In spite therefore, of the Government s special effort and undoubtedly heavy expenditure, the position remains very much “as vou were.” This fact suggests that possibly a large proportion of the 5664 placed men have been diverted from other occupations to the relatively attractive conditions under State employ. As the producing season advances the resultant stringency m the labour market is likely to manifest itself more acutely than has been the case so far, although there' have ’already been many reports from country districts of the difficulty of engaging farm labour. On the present figures it is not easy to conclude otherwise than that the Government will never solve the unemployment problem while standard wages are paid on relief works. It should, moreover, be noted that 14s. a day has become the minimum, even for unskilled labour, and that various scales above that minimum are being paid for certain classes of work. . . Under the circumstances, it is not surprising that the labour bureaux are being flooded with registrations. Nor is an end in sight. As long as conditions on relief works are made attractive, for so long will, the “unemployed” prove inexhaustible. The only way for the Government to empty this widow’s cruse of labour is to make wages on relief works less attractive than those paid by private empl The S decision must be faced sooner or later, and the sooner the better. For the Government has no widow’s cruse of money to enable it to continue recklessly adding thousands, of men to the State’s pay-roll.' The latest 5600 added will draw wages amounting to about £22,400 a week, or at the rate of £l;164,800 a. year, and it is proposed to engage another thousand men at once. The only way to stop this aggregation is to revert to the common-sense policy of the Reform Government. That was to make wages on relief works lower than standard rates, so that labour would only apply to the State as a last resort. Obviously, if the wisdom or courage is in the United Government to apply the proper check, the brake of finance must soon be automatically applied. For if unemployment is so considerable now,-when New Zealand is’entering upon her busiest season in the year, the figures will be much higher in the winter. Present spending at the rate of over a million a year may quite easily be doubled next winter if the present wages policy is pursued. Surely this is a heavy price for the community to pay, even temporarily, so that the minority United Government may retain office with the support (and at the behest) of Mr. Holland and the Labour Party. The present policy presents other problems besides those of wages and ways and means. There is, as already mentioned, the artificial reduction of the Dominion’s labour reserves at a time when an increasing demand will be made on them. Some more satisfactory answer to this question than has yet been attempted should be supplied immediately. There is also the difficulty of placing men who cannot accept work, far from home. The family man should not be penalised. There'is also the increasing load of uneconomic expenditure on undertakings for which there is no immediate need. Enough has been said to show that, far from ending unemploy-ment,-the Government by its policy has aggravated it. It is plain that the payment of standard wages must'rapidly land the Government in 1 a position untenable financially. Moreover, the heavy drain on available, labour supplies must shortly have injurious effects both in town and country. In fact, the whole position requires re-examination. The first step in restoring the balance should be a reversion to the old rates of pay on relief works. That change in itself would automatically adjust the major disarrangements.