HOUSING AND SICK PAY

Evening Star, Issue 23025, 2 August 1938, Page 5

HOUSING AND SICK PAY

DIVERSITY OF OPINION DISCUSSION AT CITY COUNCIL Considerable discussion arose at the City Council’s meeting last evening, when the chairman of the Finance Committee, Cr W. B. Taverner, moved the adoption, of that committee’s report. In the past when an employee of the council was sick provision was made for him to receive two-thirds of his pay. The cost of this payment to the council last year was £4.090. The Finance Committee’s report set forth the opinion that the scheme generally called for review. It recommended that sick pay allowance be fixed at half rates. Several councillors objected to this. Cr Taverner said the committee had made a serious endeavour to give the, best possible return to the emplo3’ees under this heading. In doing anything there had to be borne in mind the present legislation now before the House—that was the social security legislation. If that became law the whole position would have to be reviewed. Touching upon that section of the report which dealt with the council’s housing scheme, Cr Taverner said he had hoped that dwellings of a cheaper type could have been built and made available for workers on a low rate of wages. However, this could not be done under the present method of finance. The point in the report which raised discussion among councillors related to the deposit paid by applicants for dwellings. The committee was definitely of the opinion that persons putting in for a dwelling should have at least 7i per cent, of their own money in the house, said Cr Taverner. As a matter of fact, quite a number had been depositing over 7i per cent. The proposal had been put forward for two reasons. It was necessary that applicants had a reasonable amount in the venture. Further, it must he remembered that houses were being put up at peak prices, and the question of security was a matter for consideration by the individual and the council. Cr Walls said he objected to the sick pay being reduced to half. When) a man was sick was a time when he needed as much money as possible in the home. If a worker gave service and was unfortunate enough to get sick, he did not think that his pay should be reduced by one-half. He moved an amendment that the matter be referred back to the committee for reconsideration. Concerning the clause that halfpay would be paid for three months, he also moved as an amendment that the matter be reconsidered and the wording altered to read that at the expiration of three months the question of pay be further considered.

Speaking to the clause relating to the 74 per cent, deposit to be paid by applicants for a council house, Cr Walls said young people had been deprived of entering into marriage during the depression and had to get relief. Now they were getting to a stage where they could consider matrimony, lut they had no money to set them up with furniture. A Worker might be in a position to put up the required 74 per cent., but he would then not have enough to furnish his home. He would like to see this matter referred back to the committee. The deposit required was £25, but asking a minimum of 7} per cent, would mean nearly' £IOO, which would go a long way to, furnish the home. Cr Munro. seconding the amendment, said he anticipated that the council would' do something like this. “ In fact I thought it would cut it out altogether,” he said. The salaried officer did not get his salary reduced if sick. That was the reason why the two-thirds sick pay had been brought in. Cutting down to one-half would be a real hardship on the daily worker, he said. “It is just what I anticipated,” he again remarked, referring to the Finance Committee’s' vroposal to increase the deposit of applicants for council houses to 74 per cent. “ Men who can put down £IOO can get any financial ' institution to finance them.” The housing scheme, he went on, was introduced as a scheme for the young men getting married. ‘ I don't say it is contemptible, but it looks like it.” Cr Gibson said he was one of the sub-committee formed to go into the matter. The Government departments did not pay outside men sick pay. The salaried man was required to work back long hours at times, and for this reason his salary went on if he were sick, hut he did not get overtime. If an outside worker worked overtime he was paid for it. During the sub-committee’s investigation, said Cr Gibson, it was found that quite a number of men on the council’s pay roll had been drawing two-thirds sick pay for 12 months, and quite a number had been drawing £1 a week from a lodge and other sick benefits, until it was found thev were averaging practically the equivalent of their full wages. To his mind this encouraged the malingerer and put him off going back to work. It must be admitted, continued Cr Gibson, that a man getting half-pay would only be losing £1 a week as against what he would receive on a two-thirds basis. It was necessary to reduce the annual recurring loss to the council, which was something in the vicinity of £5,000 last year. He would vote against the amendment, ho_ said. Cr Wilson said he would vote against the amendment. The conpcil always gave sympathetic consideration to each case, which was treated on its merits. He thought it was a very fair proposal. Cr Cameron said he was glad to see the council was trying to put the housing scheme on a very fair basis, so far as the sick pay was concerned he had discussed the matter with workers, and they were glad to see that the council was going to retain the scheme. Some of the men he had spoken to had told him that they had been surprised at getting the twothirds sick pay. “ 1 think you will find there will be general satisfaction with "the arrangements of the scheme, he said. • , . Referring again to the housing scheme proposal and the 74 per cent., Cr Cameron remarked that Cr Munro had said the 74 per cent, would kill the scheme. It had been shown that the deposits received by the council averaged £95. but he could not see that the difference between £95 and £IOO would kill the scheme. Cr M'Crae said that when the scheme was inaugurated the object was to allow the man with a small salary to have a house of his own, and this sort of thing should be encouraged. Up to the present, said Cr M Crae, the scheme had been a decided success. Indeed, the Clyde Hill scheme would be a standing monument to the I foresight and forethought of the late council. He agreed that £25 deposit was too low. The conned had built or was building 161 bouses, and the average deposit on these had been £95. The public was under the impres-s-on that everyone was paying £25 deposit, but that was not so. Of the

161 cases, only in 48 had deposits of under £3O been paid. By asking for a deposit ot 74 per cent. ; they were going to weaken the ability of the borrower to keep up bis payments. So far .as building at peak "prices was concerned, the speaker saw no.danger of the council making any loss. The fact that the corporation would be getting £2,576 in rates from the 161 houses, in addition to selling power and gas, must . also be considered. History showed ,a steady progression in wages, and, unless financial systems were altered, they would in 25 years time probably be £lO a week. The speaker added that he did not think that any Government or city council in New Zealand had done anything at all compared with what had taken place in other parts of the world, where houses had not only been built but a subsidy had been granted on interest payments. Cr M'Crae gave notice of motion that the words 74 per cent, be struck out from the clause in question and the words £SO be substituted. Cr M’Millan remarked that here again one saw the ever-recurring question of class distinction. The council now said it was leaving the men on their present footing. That was the trouble. It was fundamentally wrong. It should not make any differentiation between the salaried worker and the day worker

Concerning the housing scheme, he was sorry to see the council making any alterations, and he put forward the same plea as others about young married men wanting to set up house. It was not so much a question of whether a man could pay a deposit, as whether he could keep up his payments. A man might have come along to the last council with £IOO deposit, but if it found' ho would not be able to keep up his instalments, his application was turned down. He considered a deposit of £25 was ample. Cr Smith said he thought personally that this present loan should be the last. However, they were committed to it. The housing scheme should be a Government concern, he thought. Regarding the deposit the council asked, the speaker said he would like to ask those round the table if anv of them would like to finance a £1,250 house on what practically amounted to a £lO deposit. Members had to visualise the condition of the present houses in 25 to 30 years’ time. “We believe tenants will look after them, but wo have to consider the ratepayers.” he said.

Cr Shepherd, referring to Or M‘Millan’s reference to the council’s proposal to raise the third £IOO.OOO loan without a poll, said he understood the present council was simply honouring the agreement of the last council. Or Henderson also spoke on the subject, expressing the views of Cr Gibson

Tlie Mayor said he wished to_refer to Cr M'Millan’s remark about raising the loan with a'poll. The old council had decided to make application for the money, ami the present council simply carried the proposal to completion. “ Any further proposals for loans will not have my support.” said His Worship, “ without referring them to the ratepayers.” In reply, Cr Taverner said, in giving consideration to these matters, there had been no attempt at bargaining. Things were often done without giving consideration as to where the' money was to come from. % He referred to the question of sick pay. The tramways had for years had a sick fund, and the council never contributed anything towards it 1 . Were it not for the Government social legislation now pending he would have asked the council to consider some sick benefit scheme.

When the amendments to the relevant clauses wore put to the meeting both were lost. The report of the Finance Committee as tabled was then put to the council and carried.