THE UNEMPLOYMENT ACT.

Evening Star, Issue 20635, 7 November 1930, Page 8

THE UNEMPLOYMENT ACT.

It is small wonder that administrations in New Zealand'favour indirect rather than direct taxation. The former method saves them a great deal of the trouble and often of the cost of colleo tion. In tho case of a special tax ear marked for some particular purpose, such as the petrol tax, every bowser attendant becomes an unpaid agent for tho State. The unemployment levy introduces direct taxation to a vast number of the population hitherto unfamiliar with it. But, true to habit, the authorities are making use of taxpayers themselves as collecting agents in tho matter of this new direct tax. it cannot be said that tho unemployment levy is popular, the general attitude towards it being that it is a necessary evil, and tho universal hope that it will be only a temporary measure. Employers of labour are therefore all tho more displeased over the compulsion placed on them to see that those in their employ fulfil t|ieir new duty towards the State, Under the Act a fresh offence has been created. A good many employees would consider it offen sive on the part of their “ boss ” to come “ nosing into ” their private affairs, which their relations with tho State authorities have usually been considered to bo. But the Act directs employers to make sure not only that all on their pay rolls have registered as taxpayers, but that they pay out their periodical seven-and-sixpences with reasonable promptitude as they fall due It is quite reasonable that tho State should strive after the lowest minimum cost of collection of this particular levy, but it undoubtedly appears harsh to threaten some taxpayers with a £2O fine for neglect to perform what hitherto has been regarded as exclusively a function ot the Government through its own adequately-paid servants, possessed of a special status arid equipped with tho authority of the Crown.

Nor does it appear as though organised Labour is anxious to co-operate with the Government in another department of the administration of the Act. The main functions of the Unemployment Board are sot out in the Act—to find billets for workless, to foster the creation of new work and extend existing enterprise, to promote fitness to undertake work on the part of the untrained or partially trained, and to suggest the apportionment of the proceeds of the levy. Tho board is to comprise eight persons, and it might have been imagined that, so impossible of fulfilment appear some of tho board’s tasks, there would have been no eagerness to be one of the eight. Success iu the placing of unemployed in really useful and reproductive work would only be achieved through such a change of economic conditions as would render the board and the Act superfluous. However, it seems that there are so many men in Labour’s ranks who are undismayed by the most baffling of all problems that tho Labour organisations are embarrassed, have become uneasy as to how the Minister of Labour will be able to choose with discrimination two worthy and representative men from among a host of applicants whdse belief in themselves and their theories is their chief qualification, and are inclined to stand aside and criticise not only tho method of choosing a board, but the Act itself. It would bo a severe blow to tho scheme if hostility in such a numerous and important section were to replace tho already none too enthusiastic attitude towards it. Unquestionably the basis of that feeling is tho anomaly that those now out of work are required to register as taxpayers arid are required to pay the levy. How some of them can do this unless they can first borrow on the security of tho first instalment of the dole—2ls or under per week —it is difficult to conceive. Nor will the task be much less easy foi the poorly-paid man in work, making no headway with his possible load of dependents under a still relentless cost-of-living level. It would appear that, if there was an intention to make the introduction of the “ dole ” under as unfavourable auspices as possible, so as to make even likely recipients pray to see the last of it as early as possible, the Legislature’s aini is likely to bo achieved. But the scheme, such as it is, is in operation, and it is thfe duty of all citizens to try and extract -all the good possible under it and help to make it workable. On the wealthier classes it will press hardly at all, and this leaves them all the more free to seize on every available opportunity to remove any obstacle to the return of condi...ms that will make for the normal absorpt.or. of all employable labour.