HEALTHY FINANCE

Evening Star, Issue 21219, 28 September 1932, Page 6

HEALTHY FINANCE

UNEMPLOYMENT FUND SURPLUS SOUHO ADMINISTRATION CLAIMED 97% SPENT ON RELIEF [Fkom Ode Pakliauehtaet Reports*.] WELLINGTON, September 28. The Unemployment Fund is in healthy condition, according to a brief but important analysis of the financial operations of the board given by Mr Hamilton (Acting Minister of Employment) in the House to-day. It reliably foreshadowed that the actual revenue will exceed the estimate by a quarter of a million pounds, and that a surplus of £IOO,OOO is likely. An increase in special taxation is not anticipated. The Minister said it was difficult to make the statement as full and as definite as might be desired, because at any date large amounts of money were either in process of being received or of being paid out. The particulars given, however, would be sufficient to indicate the general position of the fund. When in May last the tax on wages, salaries, and other incomes was raised to Is in the £, it was authorised that the board’s revenue from all sources would be about £3,600,000 for the year ending April 30, 1933. The board could now form a reasonably accurate estimate, and, from the revenue received so far, it was considered safe to forecast it at approximately £3,850,000 in this period. Prior to the raising of the tax, the board had revenue (including subsidy from the Consolidated Fund) which was estimated to allow for a weekly expenditure of £50,000. By the increase in the tax from May last, the board was provided with an estimated revenue permitting a weekly expenditure of £69,000. In June it became evident that the sum would not meet the reasonable needs of the registered unemployed. Cabinet, therefore, authorised a weekly expenditure up to £91,000 during July, August, and September. It had been anticipated that this would tide the board over the most difficult months of the year, after which it was hoped that there would be an appreciable improvement in the unemployment situation, and that the board would be enabled to balance its expenditure with revenue. The period for which the extra provision was made will terminate at the end of the present month. THE BURDEN CARRIED. To illustrate the heavy burden at present being carried, the Minister supplied details setting out the expenditure allocation from the fund in the four weeks ended September 10, 1932. Under scheme No. 5 the amount was £269,409, the number of registered unemployed in the week ended September 3 being 49,380 working and 7,076 standing down. Other schemes and miscellaneous (including administration) accounted for £83,606. The number of men employed was 16,785. That represented a total expenditure allocation of £353,015 for 73,241 unemployed, or at the rate of £4,590,000 per annum. Pointing out that detailed statements as to the position of the fund would be found in the annual report, the-Minis-ter added: “It suffices to say hero that if all the commitments entered into by the board—taking into account work that has been finished but not yet paid for and forward work committed, but which is still in progress of completion —were met there would be, excluding the revenue received in advance, a surplus of over £IOO,OOO. This healthy position of the fund would give reasonable hope to anticipate that no further taxation will be necessary this financial year. This will, of necessity, depend upon the calls made on the fund during the remaining six months of this financial year—-that is, from October to March 31. Such calls may consist of an increased number of registered unemployed. It is reasonable, howewer, to hope that the present number of approximately 73,000 should be very materially reduced during the summer months. If this takes place the present taxation should provide sufficient revenue to meet requirements.” MODERATE ADMINISTRATIVE COSTS. Continuing, the Minister disdosed that the burden of administrative costs on the fund was yery moderate—indeed, in the first instance, use was made wherever practicable of suitable clerical workers from the ranks of the unemployed, with the result that a considerable amount of the clerical work was being carried out by these workers. Again, owing to the practice of operating where at all practicable through existing Government or local body organisations the expenditure on administration was kept within a very reasonable compass.” Pealing with the total expenditure under all headings in the periods December 1. 1930, to March 31, 1931, and April I,' 1931, to March, 1932, the Minister recorded the following figures;

For the four months ended March 31, 1931: Administration expenses, £9,315, or 2.17 per cent, of the total; board members’ fees and expenses, £2,034, or .47 of the total; relief schemes, £418,181, or 97.36 of th© total; total expenditure, £429,530.

For the- year ended March 31, 1931: Administration expenses, £52,388, or 2.30 per rent, of the total; board members’ lees and expenses, £2.027, or .12 per cent.; relief schemes, £2,218,522, or 97.58 per cent,; total expenditure, £2,273,537. These percentages had been calculated upon the actual expenditure in. jrianh j&otadcd

amounts due and unpaid at March 31 in each year. “ It is questionable if, in any other part of the world, the financial arrange* meuts of the Government for handling unemployed problems are as sound as in New Zealand,” the Minister con. eluded. “The whole of this money, amounting to between three and a-half and four million pounds, is being raised by taxation, and not from capital expenditure. The payments given to relief workers continue to be paid as a return for work done. Most of this work is useful, and is building up valuable assets for New Zealaqd, a dding to the naiaopal