UNEMPLOYMENT RELIEF

Hawera Star, Volume L, 27 August 1930, Page 6

UNEMPLOYMENT RELIEF

PARLIAMENTARY PROPOSALS PLAT RATE LEVY. DEFERMENT R F.QUESTED. (By Telegraph—Press Association.) WELLINGTON. Aug. 2G. The House of Representatives to-day went into committee lo deal with the Unemployment Bill. The leader of the Labour Party, Mr H. E. Holland, expressed the opinion that very few workers would be likely to raise objection to the payment of contributions towards the unemployment fund. Ho was satisfied, no man. if he had had experience of the cases that daily came before members of Parliament, would object.to paying even a. levy. Every member of Parliament, had had his attention drawn to cases that were worse than heart-breaking; yet he was unable to give assistance. '■ Mr Holland said there were a good many features in the Bill which fell far short of what the Labour Party stood for. Still, it would make some provision for people in dire distress. The only alternative to sustenance was in many cases starvation. When a worker paid 30s or £1 or whatever scale of contribution was eventually decided upon he would ho contributing it as an insurance for himself. The general effect of providing work would be a contribution towards the economic stability of Now Zealand.

When the Labour Party subsequently endeavoured to secure changes in the Bill it would be voicing the unanimous wishes of practically the whole of organised Labour in New Zealand. It particularly desired a graduated scale (of contributions and that women ’should lie included in the scheme. It was fortunate that the Government hall already indicated it was prepared to accept amendments, and lie hoped important changes would be made. _ BASTS OF THE LEVY. • The Minister of Labour, the Hon. S. G. Smithj said there had been a suggestion from an organised Labour conference that the levy should be on the basis of a penny in the £1 of all income. The advice of experts, however, indicated that the cost of collecting such a levy would make it practically unworkable. It would be necessary to ascertain the income of every man over 20 years of age, and to do that it would be necessary that every man should make a return. It was pointed out that if a penny in the pound were collected from every income over £3OO that at present did not pay tax because of certain exemptions, the number of taxpayers would

be increased by 50 per cent. There would be £7500 to collect and the cost of collecting it would be £7OOO. The cost of collecting a similar levy on incomes below £3OO would be prohibitive.

Mr Smith agreed with Air Holland that the workers would raise no objection to contributing towards an insurance fund. He was sorry he could not accept the amendment as suggested by Mr Fletcher that the Bill should be called the Employment Bill and the Doard should be named the employment board. He did not wish to cover up the fact that the Bill was the outcome of a serious unemployment situation. The Government had already decided on two amendments, one making provision for the payment of £IOO,OOO from the Consolidated Fund to the unemployment fund immediately the Bill was passed in anticipation of revenue, and the other providing that any branch of industry that wanted assistance and could absorb a large number of men should be able to receive assistance. SUSTENA NCE CLAUSE.

Mr R. A. Wright (Wellington Suburbs) said lie was in favour of the retention of the sustenance clause in the Bill so long as it was provided that a man should go to a local body and be given some work to do in return for the sustenance received. He pointed out that some local bodies would be able to employ a large number of men if they had the money to pay them. Mr P. Fraser (Wellington Central) took exception to the advice of the experts on the subject of graduated contributions. He suggested the Minister should again refer to the officials and ask them to make some feasible proposal that would bo capable of being put into operation. He suggested some Government officials did not always give as Avell balanced a survey of the position as could be desired. The amendment moved by Mr .T. S. Fletcher (Grey Lynn) to amend the short title to “Employment Bill,’’ was defeated on the voices.

Mr Wright urged the Minister to include in the Bill a clause requiring that, a person should have resided in New Zealand for a fixed period of, say, three or five years before he received sustenance. He favoured the addition of a hardship clause to meet the position of those to whom the payment of the 30s lew was unduly difficult.

MINISTER’S AMENDMENTS. Mr Smith announced that he had a number of amendments which he proposed to insert in the Bill with the permission of the House. In addition to the amendment giving authority for the transfer of £IOO,OOO from the Consolidated Fund to the unemployment, fund to meet immediate requirements, it; was proposed to alter the clause granting exemptions from the, levy so that all pensioners (instead of old age pensioners as previously) should he ex-

empted. A further alteration provided that, co-opted members of the board should not; have power to vote. An amendment relating to the subsidiary functions of the hoard would enlarge the scope so that assistance could also be given to an existing industry to carry on if by doing so it would be possible to keep men employed. It also permitted assistance to be given to development and other works (instead of merely developmental works as formerly)-

Mr Smith said he wouid ask that the clause providing for a flat rate of contributions to the unemployment fund should be held over in the meantime in view of the objections that had been raised. It was only right that Cabinet should have an opportunity to reconsider the position and to see whether a scheme could be devised under which a graduated scale would be workable and would bring in the money required, at the'same time imposing a minimum of hardship. He believed there was a task in front of himself and the board in the event of the Bill being passed, but he felt confident if would be possible under the scheme to bring about a great deal of improvement in the unemployment situation. Referring to the proposal to include on the board a representative of the returned soldiers, Mr Smith said there had been complaints that this would not by any means fulfil the recommendations of the Rehabilitation Commission. He pointed out that it would require more money than there was available to fulfil the commission’s recommendations at once, and he hoped the House would accept the proposal embodied in the Bill as a means of doing something this year to improve the position of disabled ex-servicemen. He asked the House to pass the short title and thereby make it possible for each clause to be considered on its merits in turn.

INCLUSION OF WOMEN. Replying to the request that, women should be included in the scheme, Mr Smith, said there wore 28(1,00 women in New Zeala'iul who were either retired or pensioners or were engaged in domestic duties. It would be unfair to ask all those women to contribute the levy for the sake of the few hundred women workers. If the contributions were confined to women workers there would be complaints that large numbers of girls leaving school would never be able to benefit under the scheme because it was possible they never had employment. The Right Hon. «T. <l. Coates, leader of the Opposition, said it would be a mistake to postpone consideration of the clause relating to the unemployment levy which, he believed, was the backbone of the Bill. It would be a ease of putting the cart before the horse if the remainder of the Bill were considered before a decision was reached as to how the funds for the scheme were to be raised. Mr 11. E. Holland declared the Min-

ister would be unwise not to take full time to consider the suggested alteration in the basis of contributions. When the clause was reached it was decided, on the suggestion of Mr Coates, to report progress and ask for leave to sit again. Mr Coates asserted that the whole structure of the remainder of the Bill depended on that section. R.S.A. DISSATISFIED. EXECUTIVE RESOLUTION. The following resolution was passed unanimously by the executive of the New Zealand Returned Soldiers’ Association, which met at Wellington last evening: “That this meeting of the N.Z.R.S.A. expresses its profound disappoinment that the amendments to the Unemployment Bill, suggested to the Minister of Labour and the Select Committee of the House which considered the measure, have not been incorporated in the Bill, and further presses that this demand, with the amendments suggested, oe incorporated in the Bill, unless the Government proposes to introduce legislation to set up the Soldiers’ Civil Re-establishment League, as recommended by the ex-soldiers’ rehabilitation commission.’ ’ It was also decided that, a deputation wait upon the Acting-Prime Minister and Minister of Labour to urge that effect be given to the resolution (.reports the “Dominion”).

TAWA FLAT PROTEST. ENACTMENT OPPOSED. At a largely attended meeting of the Tawa Flat branch of the New Zealand Workers’ Union, held at Johnsonvillc, the Unemployment Insurance Bill, as reported from the Unemployment Bill Committee, was fully discussed (reports the “Dominion”). The follow-

ing resolution was carried unanimously:— “That this meeting of the Tawa FlAt branch of the New Zealand Workij|B Union registers its considered protein against the enactment of the proposed ■Unemployment Bill as an ill-advised attempt to solve the problem of unemployment, and emphatically protests against both the inequitable method- ol contributions, and the inadequate sustenance pay-nients. ’ ’