SUBSIDY DOUBLED

Dominion, Volume 23, Issue 218, 11 June 1930, Page 10

SUBSIDY DOUBLED

UNEMPLOYMENT RELIEF CITY AND BOROUGH WORKS ENCOURAGING LOCAL BODIES A substantial increase in the rate of the State subsidy, payable on unemployment relief expenditure by local bodies in cities and boroughs was announced by the Prime Minister (Hon. G. W. Forbes) yesterday. The Prime Minister stated that in the past the Government had subsidised the labour costs on unemployment relief works undertaken in urban and suburban districts on the basis of £1 for £l, but In future the subsidy would be increased to £2 for £l. “This increase,” Mr. Forbes said, “Is for the purpose of encouraging local bodies to provide relief works adjacent to the workers’ homes, and thus obviate, as far as possible, the necessity for sending married men with large families to unemployment relief works in the country. Conditions of Subsidy. “Where the number of unemployed in .a district is sufficient to justify the local body undertaking special relief works, State subsidy of £2 for £l, based bn the standard relief wages of 14/per day, will be paid on labour costs in respect of: (a) Moneys borrowed for the sole purpose of unemployment relief, provided the works on which ,sueh moneys are to be expended have not been included In any .schedule of works for which a loan has already been raised, and (b) Moneys expended from revenue on works of a capital nature undertaken expressly for the relief

of unemployment. “In the case of works undertaken from voluntary subscriptions, the subsidy is £1 for £l, based on the expenditure on materials as well as labour, and is not limited to relief rates of pay. Subsidies in Rural Districts.

“The foregoing subsidies apply to urban and suburban districts,” the Prime Minister added. “In rural districts (counties, road districts, etc.) £1 for £1 subsidy is payable on materials as well as wages in respect of works undertaken from revenue, loans or voluntary subscriptions. “Works which local bodies propose to undertake with public subscriptions, and all wdrks in rural districts, must contain at least 60 per cent of labour, as in these cases the subsidy is payable on both materials and wages. “In addition to providing moneys to subsidise the relief works provided by local bodies, the Government is also meeting the position by pushing ahead with public works and afforestation as far as funds will permit:”