THE PROBLEM STATED

Evening Post, Volume CXVII, Issue 50, 28 February 1934, Page 8

THE PROBLEM STATED

The value of the report prepared by the Rotary District Governor's special committee on unemployment, lies in the fact that it sets out the problem clearly. The District Governor, Mr. T. C. List, is himself well , acquainted with the facts, and he has had exceptional experience, ■ through his leadership of 'the settlement of English public schdol boys, of the main suggested solution. In consequence his committee has approached the problem from a practical angle, not saying simply (as many people are apt to say): We have millions of acres ■of land; the Government should put the unemployed on them. The facts are analysed with care, due attention being given to the type of men available, the class of land, its price and the effect of closer settlement on production. At the outset we think the' committee' has overestimated the effort that is necessary to absorb all the unemployed. Placing the total of unemployed at 75,00CK is we think above the maximum, for if the aided labour and relief schemes were stopped at once ,it would shortly be necessary to reengage many of the men under ordinary conditions. This "applies in both town and country. Further, the assumption that the absorption of 75,000 necessitates the settlement of 37,500 on the land is not in proportion to the present distribution ,of labour in primary and related industries.

At present some 80,000 farmers provide the chief ' section of the primary base upon which New Zealand industry is supported. There are other sections: mining, afforestation and milling, and fisheries which could be expected to play their part in reabsorbing labour. But the point we wish to make is' that every man working on the land or in the mines or forests provides work not for just one other man in transport, trade, manufacture, and other occupations, but possibly as many as three other men. The numbers will not rise in strictarithmetical proportion as there are factors which cause variations. For illustration, our transport system could probably handle the work of a greatly increased, production without calling for the employment of many more men in the transport industry. Of course the existing facilities would be more fully used and this would be beneficial and economical. Without attempting an exact analysis, however, we should think that a primary settlement of. much less than 37,500 would absorb all the worklcss. The Rotary committee has suggested how the maximum settlement should be distributed according to the capacity of the men: 10 per cent, on farms, 50 per cent, on communal plots, and 40 per cent, as employees. With both the first and second classes the requirements are: (1) Land; (2) finance. The land is the key factor.' If■• land can be obtained in the quantity and at. the price to permit settlers a modest return, the community is courageous enough to accept the financial responsibility. But we do not want a land boom to help present landowners to load liabilities on the country. For about eighteen months

the Government has been experimenting with a small farm scheme. The information and experience gained in that time should be invaluable in enabling a decision to be given on the feasibility of the Rotary plan. From'occasional statements we judge that the small farm plan has not made marked progress, and that it. is handicapped by a difference of opinion between landowners and the Government on the value of their surplus holdings. Undoubtedly land is kept at a price above its present trUe : level by the financial protective legislation. It may become a question whether this protection should be relaxed where it is seen that it is preventing land being made-available for those .who are able and willing to use it.' The Rotary inquiry should be followed up, we think, by examination of the experience gained with the small farm plan and investigation of the land price factor. , : '