THE NEW POLICY

Evening Post, Volume CXII, Issue 90, 13 October 1931, Page 10

THE NEW POLICY

STATEMENT TO-NIGHT

A clue to the unemployment policy which tlic Minister in Charge of Unemployment (tlio Right Hon. j. G. Coates) will enunciate in tlio House of Representatives to-night is given in the Sup-, plementary Financial Statement. "Everyone is ngreed that no real progress ivill be made until the imam.-

ployod are engaged on reasonably productive work winch will reflect itself in increased exports or increased manufactures," said the Statement. "The Government is engaged in an attempt to change over from the present policy to a new policy on the lines indicated above. If it proves succcsful, it should result in the gradual absorption of the unemployed in productive industry and in lessening'the need for taxation. But in the meantime a position bas been reached in which all the funds available arc strained ty the utniOßt and are insufficient to «opo with the immediate need for granting relief. There is no margin of funds to enable the Government to change over from the old policy to the new. If the new scheme is to be tried out, it appears as if the Minister in Charge of Unemployment will require temporarily some additional funds, which can only be got from additional taxation, as no further money can be obtained from the Consolidated Fund. On© of the main objects in view is the use of the unemployed in preparing land for settlement." The statement to be made by Mr. Coates to-night will be a survey of the whole situation, and will indicate the change in policy aimed at, although it is understood that it will take- some time to make the change over to land development work. One big land scheme of 141,492 acres near Lake Taupo has not been finally decided upon, and thero are indications that certain roading works will be proceeded with in tho meantime, the policy being to absorb the unemployed gradually on land development. It is understood that Mr. Coates's statement will contain no definite indication of the1 amount of additional finance required, nor the proposed method of raising it. However, Cabinet has considered the possibility of increasing the emergency tax without yet coming to a final decision. It is thought that if necessary it would not exceed an additional 2d in the & on wages, and would produce extra revenue approximating £600,000 annually. But there is a. good possibility of avoiding this further impost by utilising loan moneys. It is contended that- this policy would bo fully justified by the reproductive character of the works undertaken.

The full publicity available by means of the broadcasting service will be utilised this evening in a statement on unemployment, to be delivered by the Minister in Charge of Unemployment, the Eight Hon. J._ G. Coates. All the Broadcasting Company's stations will be connected by landline.