FACING FACTS

Hawke's Bay Tribune, Volume XXV, Issue 160, 22 June 1935, Page 7

FACING FACTS

UNEMPLOYED PROBLEM Statement by the Minister HELP OF LOCAL BODIES By Telegraph—Press Association. WELLINGTON, June 21. The difficulties facing the Unemployment Board and its need for the co-operation of local bodies were stressed by the Minister of Employment, the Hon. S. G. Smith, replying to a deputation of the Wellington City Council, which asked the Minister to increase the allocations to unemployed men by 10/- a week and abolish the No. 5 Scheme in favour of major national works at standard rates of pay subsidised from the Unemployment Board’s funds. The Minister stated definitely that the board could not do more than meet present requirements, but hoped to improve conditions generally with the co-operation of local bodies. He offered 35/- a week for married men if the City Council would bring that up to standard rates, this applying to work that would not otherwise be undertaken.

Mr Smith in the course of his reply to the deputation said, “I’ve got to face the facts. I can’t make fancy speeches to tickle the ears of the unemployed. Wo have so much money and so many men, and the board can only do its best. If the No. 5 Scheme finishes in Wellington tho Unemployment Board has no power to start major works in Wellington, consequently the men would have to be put on sustenance, which is 3/- a week less. I have no power to start major works. I will discuss them with my colleagues, but even if the Government wanted to start major works outside of a few buildings in Wellington it would have nowhere to turn except to national roads and railways, and that means camps If the Government were to do that what would happen? We would have people who are suggesting that we stop the No. 5 Scheme and start major works protesting against sending married men to the country. You can't have it both ways, and the great bulk of reproductive work is in the country.” REQUEST FOR 10/- INCREASE. The deputation was asking tho board to increase relief rates by’ 10/- a week. Tho board would like to do so, but after carefully examining its accounts the accountant had reported that they could not do more than come out square at the end of the year. “That is the accountant's opinion,” said the Minister. “I am not an accountant, but I atn satisfied we will come out with a deficit.” The Minister went on to say that it was certain conditions had improved in New Zealand. In his own town the requirements for relief were down by' £3O or £lO a week compared with last winter. In some parts of New Zealand relief depots were no longer required. On the West Coast of the South Island, the problem of three years ago was largely gone. One hundred men had been wanted for a relief job there, and only five were available. The Unemployment Board had been criticised in Christchurch, but when 450 men were wanted for work on the Waimakiriri river only- 36 had offered, and there were 1100 'on sustenance in Christchurch. The Minister, in reply to a question, said that the rates were not exactly standard rates, and the men were married men. WHAT BOARD HAS DONE. Mr Smith said that the board had taken 19,000 men off the streets, where they had been chipping grass, and had put them back into the building, industry by means of the subsidy. The board had 2000 men out gold prospecting, but it never got any credit for that. What the board wanted was cooperation. It wanted to get rid of tho No. 5 Scheme, but that could not be done by July 31. New Zealand had done more for the unemployed than any other part of the Empire. There were 365,000 paying tax, and if the relief rate was increased to £3 a week that would be more than 60 per cent, of the men who were paying tax were receiving. Would a man stay on work for six days a week if relief rates were increased to £3, as they would bo by a 10/- rise, if ho could get £3 for 2J days’ work? A member of the deputation suggested that one of the difficulties was that sustenance pay was too near to relief pay. Tho Minister said that that was one of the board’s difficulties, and if the No. 5 Scheme were discontinued the position would be worse than ever There were thousands of men on sustenance who should not be a charge on the fund at all. They should be a charge on hospital boards. “If the board is going to keep all sick men in New Zealand we will never end unemployment.” he said.