CANADA’S PROBLEMS

Evening Star, Issue 21317, 23 January 1933, Page 12

CANADA’S PROBLEMS

STATESMEN TO MEET COST OF UNEMPLOYMENT Before the Canadian Parliament resumes its deliberations there will be held in Ottawa a conference of the nine provinces with the Federal Government on a number of matters of mutual concern. Taking a foremost place on the agenda is the subject of unemployment insurance. Prime Minister Bennett, who has been taking a brief, vacation in England, will preside, and it is expected most of the Provincial Premiers will be ■ present. Those not there will be represented by Cabinet Ministers, since the gathering will have before it business of the first importance, says the ‘New York Times;’ Mr Bennett has announced very firmly on several occasions that be will he a party to no plan of unemployment insurance which would fall entirely upon the Dominion Treasury. Ho takes the position that the relief of unemployment under all normal circumstances

is a matter of provincial legislation; that without consent of the provinces tho dominion could not, impose upon them anv such social insurance plan. Therefore it may bo taken for granted that if a definite scheme comes out of tho conference it will provide lor creation of an insurance plan upon a sound actuarial basis, with contributions toward its cost from employers and employed, as well as from Provincial and Federal Governments.

The problem of relief continues to engage much anxious iii>ie of the Federal authorities and a considerable share of its revenue. Mr Bennett and his colleagues have had this question on their, hands since taking office in the summer of 19130. and, while there have been slight signs of improvement of late, the situation of a large number of Canadians suifering from the depression continues to give them grave concern. Thus in August 162,135 heads of families and 841,931 persons were receiving relief, and in September, the latest month for which complete information is available, the numbers had fallen to 158,171 ami 802.592. In the early days of the depression relief was extended through the creation of work. This was found to be an expensive proposition, and now direct relief has been substituted as more economical in the long run. The Federal Government does not deal directly with the unemployed, nor does it deal with municipalities, it works in co-operation with the Provincial Government in the mutter, and the provinces in turn co-operate with the municipal authorities, the three parties sharing the cost. In the past two years the Dominion Treasury has paid out more than 100,000,000d0l for relief in one form or another, and this winter will add a large sum to the total. The promise that no Canadian need suffer hardship is being made good, but the cost to the people is heavy. Mr Bennett will lay before the Provincial Conference the desirability of creating a uniform Companies Act for the Dominion, for the protection of capital and investors. The administration of insurance, as between Federal and provincial jurisdiction, is another question to be discussal, and a proposal that provincial license fees on commercial motor vehicles should be imposed on a uniform scale also may come up. There is to be considered also what Mr Bennett has called " a problem of very great seriousness ’’ in the division of the field of taxation, particularly income tax.