ANOTHER PROPOSAL

Evening Post, Volume CXV, Issue 81, 6 April 1933, Page 6

ANOTHER PROPOSAL

INTERNAL LOAN OF £2,500,000

/Another proposal involving tho rais•ing of a, loan, to be, repaid out of the ■unemployment tax was submitted by Mr. F. J. Jones, the- chairman of the Hutt Eivor Board, to the i TechnicalCommittee appointed by the conference of local bodies of the Wellington district held in AVcllington recently. At yesterday's meeting of the board, Mi. AY. T. Strand said that so far this report had not been considered hy. the committee, as had be«n. promised, "and he proposed that the board should ask Mr. Jones to place his proposal in its hands for publication. This was unanimously agreed to. The report stated that any really satisfactory - scheme must meet the following conditions: —(1) It. should provide for regular, and comparatively .full time work for relief men. (2); It should proviflc wages sufficient to live on but not sufficient to conipoto with wages, in. private, employment. (3). It must conform to the canons of sound, finance. (4) It must not bo a further burden on the taxation capacity of tho, people. (5) It must not bo a burden, on tho finances of local bodies. (6) It must not bo a burden .on posterity. (7) It must have a certain amount ofelasticity. (8) It must take into account tho psychological effect on tho people. < i. The plan assumed that unemployment would be wiped out in ten years, and is based on an initial personnel of .00,000. AVork, would be ..for five days per-week for 50 weeks in the year. Tho composition of tho porsonnel and the weekly rates of pay would be as follows: — -.'.',. . ■' ' -, £ s. cl. SitiEle men (10,000) 1 5 0 Married men, or men with one child 010,000) 2 0 0 ■With two children (7500) 2 5 0 AYltli three, or inoro children •'{ (12,500) .'..,... 2 10 0

The £6,700,000 (for tho present year, according to tho proposals, would bo made, up by £4,200,000 from the unemployment tax and £2,500,000 from the loan, and tho expenditure would bo as follows: —Wages, £5,481,250; material, £1,000.,000; supervision, £100,000; interest, £250,000; a total of £-£,831,250. The amount available with a grant of £131,250, if tho Government would give 'it, "would squaro tho first year's expenditure. For the second year £4,060,000 would bo required and with £4,200,000 available the deficit would be financed on to .the next year.

For tho third year £3,570,000 would be required with £4,200,000 available, leaving '& surplus of £63,00.0 out of which would be pai.d tho deficit of tho previous year, and th.o balance, of £170,000 carried forward. For tho fourth year £2,700,00 a would be required; a tax of 8d would produce £2,800,000, which, with tho £170,000 brought forward, "would give a balance of £270,000 to bo carried forward to tho next year, and so on,until at the tenth year tho loan would be wiped out. . ■

DETAILS OF THE SCHEME. _ A 'condensed table explaining .tiio operation of the sclicnic is as follows: — '• > No. of .Tax men on Amount Amount in relief, required, available, the' Year. £ &■■ .: £.' 1933 .. 60,000 6,831,250' 0,700,000 Is 1934 .. (10,000 4,li(i0,000 4,200,000 Is 1935 ... 30,000 3,370,000 4,200,000 Is 103fi .,' 22,000 2,700,000 2,070,000 S"d 193T ,.,. 18,000 2,250,000 2,370,000 Gd 1938 .. 12,000 1,586,000 1,520,000 4d 1939 ..•«;. 8,000 1,143,000 1,334,000 4d 1940 .. 5,000 812,000 - 891,000 2d 1041 .. 3,000 584,000 700,000 2d 1942 „.• 1,000 370,000 SOd.OOO '2(1 1943 .. Nil 250,000 .. 870,000 Id