FINANCING RELIEF WORK

Evening Post, Volume CXI, Issue 143, 19 June 1931, Page 6

FINANCING RELIEF WORK

Great relief will be experienced at the Government's decision to reprieve the, Unemployment Board's No. 5 scheme. The Prime Minister has taken the right course. Sudden suspension of the scheme would result in great hardship to those unemployed who obtain some aid from it. Moreover, the burden of providing for these people would not be avoided, only transferred to the municipalities and the hospital boards. It is better that the relief should be afforded in a way which permits the community to obtain some return from expenditure. From grants of charitable aid there is no return.

The proposal to suspend the ' scheme has, however, achieved this 1 purpose: it has checked the public protests.'.', against, . "unproductive ! works." We fully realise that much of the work, done, under the No. 5 scheme is unnecessary at the present time, and it does not contribute much : towards a permanent cure of unemployment. But it is idle to clamour for the cessation of such work until other provision can be made for the | workless. Employment in reproduc- \ tive works is better than spending I on works that give little direct re- [ turn, but paying out money for no [ work is worse—for those who pay ' and for those who receive. Let us j by all means seek to find the better plan, but until we have found it, we are merely talking idly in calling for suspension of the No. 5 scheme. There are two directions in which the better plan may be sought: in the acceleration of land. settlement and land improvement (upon which some 4000 men arc now engaged) and in revision of conditions attaching to No. 5 scheme so that works of greater utility may be brought within its scope. In such revision the co-operation of municipalities, employers, and labour : organisations is essential. If this ! were more freely forthcoming an " improvement might be made. Without I such co-operation the Unemployment i Board cannot be expected to make i great progress. Perhaps the threat i of suspension will lead to greater i effort in co-operation and to t recognition of the fact, that the '■ Unemployment Board has at least done more than its critics—how much more is tardily acknowledged in the protests against cessation of its plans.

There is another issue to be faced now that the suspension order is' revoked: the1 provision of additional funds so that the work may be continued. We see no escape from an increase in the unemployment levy. The Labour Party will probably oppose this and demand a direct, payment, from the Consolidated Fund apart from the increased subsidy that-would become payable if the levy were increased. But this would break down the contributory basis, of the fund, and incidentally it may be recalled that the Labour Prime Minister of Great Britain has declared that departure. from the, contributory-basis of the Britisli unemployment insurance scheme would be "the most terrible of blunders." There is, we are convinced, no sound alternative to the increase in the levy. The chairman of the Auckland Hospital Board has suggested an internal loan, but this would be the greatest folly. Our present difficulties are partly due to over-heavy spending from loans. We have mortgaged1 the future and find it difficult to pay, the interest. Future loan expenditure must be such as will return its'own charges. Unemployment relief works offer no prospect of complying with this condition. An increase in the levy may be exaggerated opposition.'The clamour in some quarters against sevenpence a week was quite beyond reason, and an increase on that sevenpence will evoke similar agitation. But we must try to retain a sense of proportion. A lax on tea or sugar would be equally burdensome, if not more so. Direct

payment of llie levy is really ihe easiest and; the most equitable method. There is, however, one point that may be considered. Complaint is sometimes made that it is difficult lo pay the levy in one sum, and thai smaller instalment payments would he easier. This could he provided for by the sale of' special stamps, to be affixed to ihe levy receipt form. The official receipt could then he given when the whole amount of the instalment had been thus subscribed.