PARLIAMENT'S WORK

Dominion, Volume 24, Issue 239, 6 July 1931, Page 8

PARLIAMENT'S WORK

Unemployment Funds TAX ON INDIVIDUALS Reception by House PAST WEEK IN REVIEW (By our Parliamentary Representative) With the exception of the introduction of the Government’s proposals to double unemployment relief funds, the first week of the session saw little accomplished. Ordinarily the House takes well over a week to pass from the broad flood of words following the opening to the narrower channels of real business, so that some satisfaction is to be had from the interruption of the somewhat purposeless Address- ' in-Reply debate to clear the way for the Unemployment Amendment Bui. There was general expectation a short time ago that the Labour Party would set the. session on its course by forcing a division on a no-confidence motion. Circumstances have, however, served to stay its hand, although It will probably seek a test upon what is considered the first favourable opportunity if the declarations of Mr. H. E, Holland are to be put into effect. It is clear that nothing can be done until the Unemployment Bill is out of the way, and it is likely to be several days before the measure is passed. As it happened, the Labour Party was prevented from moving a no-confidence motion when the Address-in-Reply de-, bate opened, for it was as anxious as any other section of the House to see more money provided for unemployment. TJils would have been delayed by an adverse motion, which would first have had to be talked out, thus preventing the introduction of fresh business and incidentally holding up consideration of the unemployment question. However, the Prime Minister was able to cut into the debate on Thursday, and the Government proposals for a reorganisation of relief finance and its control were at last made known. - . .

Net ■ Spread Wider. In essence, the intention is that unemployment relief shall be chiefly a question of Individual responsibility. The Unemployment Board formed under the 1930 Act, and now to be recast, was. recently spending at the rate of £2,000,000 a year, and as the Government can apparently see no hope of reducing relief expenditure, this will be the sum placed at the disposal of the new board. To find this money the Government has cast the taxation net even wider, and women are to be asked to pay as well as men. Company incomes will not be affected, broadly speaking, but wage-earners and those receiving incomes are to, be asked to contribute threepence in the pound on their annual receipts. In addition men will have to pay a flat levy of one pound a year. The total will be subsidised pound for pound from the Consolidated Fund. It cannot be denied that, however imperative the need for more funds was recognised to be, the Government’s proposals came as a distinct shock to the country. On the other hand, Parliament was not as much put about as might have been expected. Labour members gave the Bill a turbulent reception, but when the second-reading debate opened on Friday the speeches were of a much milder nature than the uproar of the previous day presaged. The Reform Party is apparently in agreement with the principle of the Bill, and the House as a whole seems to believe that its provisions are born of stern necessity. ' General Approval.

For this reason the Bill’s passage is not likely to be obstructed to any great extent, and this belief gains strength from the speeches of both the Leader of the Opposition, Rt. Hon. J. G. Coates, and the Leader of the Labour Party, Mr. Holland. The former. signified general acquiescence by his brief treatment of the Bill itself, and the latter cannot be said to have shown definite hostility. It Is true, however, that generalities mark a second-read-ing debate, and that particular objections will be more closely studied as each clause Is passed in review In committee.

General approval has greeted the proposal to reduce the membership of the board from eight to five. The Government believes that the present board is unwieldy, and It has also abandoned the system of representation, for the new body will be purely nominative. The present Act contains provision for the encouragement of industry, but so far achievement in this direction has been notably lacking. The hew board will have power to delegate this w’ork to committees, but it remains to be seen whether much can be afforded In this respect while the problem of immediate relief remains so pressing. . Interest Rates.

Current problems received much attention from speakers during the week. It was very apparent that members had been husbanding much data in anticipation of banking and currency legislation following on the recommendations of Sir Otto Niemeyer. The Prime Minister has announced that no Bill will be introduced this year; nevertheless, with money values changing. the level of interest rates has demanded consideration, and apart from pressure' being brought to bear upon the Prime Minister from outside sources, Mr. Coates has led requests in the House for a lead by the Government in bringing about a reduction. While it is admitted that the State cannot wholly control the price of money, it is believed the Government realises the necessity for a reduction if it can be effected, and the question will form an important feature of the Budget to be introduced about the end of this month. The House will resume the second reading debate on the Unemployment Amendment Bill to-morrow. It is the Prime Minister’s hope that the Bill will be put through within one or two days, and the Address-in-Reply debate will then be resumed.