CITY RELIEF WORKS

Evening Post, Volume CXIII, Issue 142, 17 June 1932, Page 8

CITY RELIEF WORKS

MORE MONEY WANTED

UNSUCCESSFUL APPEAL

"POSITION PRECARIOUS"

A request by the City Council for Government'assistance to enable the city to carry on the pre- ■ sent expenditure on supervision of city relief works was met yesterday by a reply from the Minister of Employment (the Bight Hon. J. G. . Coates) that the financial position . of the national relief funds was : particularly precarious. Mr. Coates rurged the council to strain all its resources so as to find the money v itself. He said that the next three, months would be very,difficult ones;'1 J The' Minister was waited on by the whole council.

The-'deputatioh was introduced by Mr. E. Semple, M.P., *vno saiy that the City Council had'no extra finance with which to ■■ provide for the administra-. tion expenses of the relief works it had in hand. •'HX present it was-employing■ from "3000 •to 4000 men. The council was in deep: watcir financially,,and a re-; vision ;of the council's;, position was necessary without any delay..' ; '•'•.' The Mayor (Mr: T. C. \k. Hislop) pointed out that the council was suffering through diminished income, and. said that the year ahead r would be' one of extraordinary difficulty. The expenditure} on general city-works' in 1930-31 was' about and that had been reduced until the estimates .for., the current year provided' for £195,000. Last year the' expenditure was . £230;000. Even with :an expenditure this year of £195,000 the ■council -would be sailing very close ;to : the wind.: Lastyear approximately £30,000,. was spent by the council on the No. 5 relief sclieine; That was done with the' aid: of £20,000 frOm the Electricity Department, the balance being raised by loan. This year they could not expect anything from the Electricity Department, because it had a big loan falling due, and it was. deemed prudent finance that the department should use its own resources to meet its own debt.. Moreover, many councillors were pledged not to touch' those funds. Up till 31st March, 1932, the Wellington City Council had spent £243,491 f on relief works, a great part of,which had been raised by special loans. ~ He quoted further figures in support - of' the point that one-fourth of the total expenditure on unemployment relief in- the four main cities during 1931-32 'had been borne by the cities themselves; they had therefore 'done their share. AUTHORITY TO DIVERT LOAN 1 ' MONEY. Discussing the future, the Mayor said the council had placed £10,000 on the estimates this year to cover relief under the No. 5 scheme. That was a big strain, when the total expenditure was reduced to £195,000. That '£10,000 was almost finished already and would only last till; the' end of this month. Nothing would then remain except a SUm of £13,00,0, which was the balance of a loan raised about two years ago for unemployment work on the cemetery western access road. The council wjsh'ed to have legislative authority to spend that money, for unemployment relief. If an undertaking were given by the Government that that money would be freed for the purpose the council could raise the money from its' bankers in anticipation of legislation. The £13,000 was all the council could raise. ' The'£3o,ooo spent last year enabled 3800 men to be carried, but the anticipated £13,000 would provide for only 1600 men till the end of the present financial year To carry the pie-sent-number of relief workers through the year would cost the council about £45,000, as compajed with £30,000 last year.. '' Mr. Hislop suggested that possibly the Government could afford some help by paying 30s a week each towards the wages of foremen supervising the city relief jobs—men .who would not be in the council's employ but for the relief works. In conclusion, he assured Mr. Coates of the council's desire to assist to the best of its ability in unemployment relief. - {

INCREASE IN" THE TAX?

Mr. W. Appleton said that tho city had 'reached the absolute limit in taxation. Three-fifths of the expenditure went in fixed charges. A tremendous number/of relief workers were unable to payHheir rents, and the city, having many leaseholds, suffered. Landlords did not wish to be hard, but they had to meet their "rates and interest, and they could not' carry on" indefinitely. Something should be done to ensure the landlords carrying on, even if they were to receive only 10s a week. He also .urged a reduction in the insurance premium charged for Telief workers. Tho council recognised that the Minister was in an unenviable position, but he suggested' that consideration should bo given .to raising the v unemployment tax to Is 6d in the £. Something had to'be done. ' '

Mr. B. McKeen, MJP,, said that the city ratepayer was doubly taxed for unemployment, and was doing more than the county taxpayer. The Government thought it was doing a wonderful amount of work because it was paying the relief workers' wages, but the cities wero also contributing largely. ' The number of ratepayers in the city was diminishing, and many no longer paid rates. ' They had lost the" houses. From that point of view, the Government should' do more to assist the cities. There was no hope of another cit; , unemployment loan ' being approved by the ratepayers.

Mr. C. H. Chapman;'M.P., suggested that the Government^ might supplement by 50 per cent', the ampunt; allowed the City .Council for administration expenses of relief works^ - He* pointed out that as a large centre, Wellingtonattracted .a good many men from other districts.: W,:. .'••:: '[ •- ?■ •' '• ':-.-" ■v: T .

Mr. McDonald saia that even if the council had .£23,000, there would still be' a .deficitx: of £17,000, :and he asked if 'the' Unemployment Board would make up that amount.1 Mr. McDonald also supported the representations.' ! -*• • -.'-y '

Mr. Semple pointed out that the council had. carried out as .relief jobs work which would not ordinary have been done for another twenty-five years, and the council had to, pay maintenance COStS. '. ';'-'■ '. -'. ' • ' "■/ ■-,' ■•■ : ' ;.; ; AN IMPOSSIBLE. KEQTJEST. • The Minister said he had askea the municipalities- to'furnish him /with estimates of the amount of supervision they could.undertake. It was not his business; to.; know^ where their, funds were to come from; that was for them to decide. "I know the Wellington City Council ; has strained every effort to meot the 'position," said Mr. Coates, "but I am bound to ask you to still further strain your resources— whether it is by means,of the Electricity Department .or any other—because we aro up against it!" The res©rrces of the Unemployment Board made it impossible to allocate the. £17,000 asked for. The funds at the board's disposal were not sufficient to make it possible to meet the requirements of people who legitimately needed sustenance.

i However, said Mr. Coates, I hope to be able to make satisfactory arrangements for the next few months. The question of increased taxation

or finding money by other means is a matter we have in hand, but we should seek to avoid further direct taxation^ Goodness knows, the burden is heavy at present. It is becoming increasingly difficult, but we shall see it through; there is no question about-that, and I ttiink we shall see our people reasonably carea for.

In view of the weight that their demand for £17,00 j threw on the funds, in view of the fact that the Unemployment Board was conserving every penny, and as the unemployed were increasing in numbers, he urged the council to consider what more it could do but of its own resources. He recognised that the council had been elected for the express purpose of curtailing' expenditure, but the Government was up against the same problem. If the council passed the burden on to the Government, the Government would have to tax the same people that,the council had to tax.

, Mr. McKeen:'"You. want us to be conjurors." .••■.•.. :

Mr. Coates: "Well, Mr. McKeen.you want me to be a conjuror." . Mr. :McKeen: "Toil have wider resourcesthani we have."

Mr. Coates: "Very little wider." If the board .was .called, on for, £17,000 extra for Wellington, they, would, encroach} on the.fund the.board depended on to find food for the unemployed.

Tour position is difficult, Mr. Coates remarked,^ "but God knows,: the Government's position is ■ difficult. I don't want to appear unreasonable, but the-position is particularly precarious. I think,* therefore, I am Justified in asking you to "see how much more you can. rake-up to. continue for the next there months."

A voice: "What about releasing the £.13,000?'' ';:";;' ' -

Mr.' Coates"said; he would certainly recommend^ Cabinet next day to release it. ■■.■:•;■ ■--■ ■— ■ .. •'■-■■-

! In conclusion, he again urged them to "soldier on" for three or four months, when the Government might be able to see. clearly ahead. • "The next three' months is going to be particularly di& T :eult," he added. '■ / V