“ONLY ONE SOLUTION”

Hokitika Guardian, 16 June 1930, Page 8

“ONLY ONE SOLUTION”

UNEMPLOYED PROBLEM

THE REVIVAL OF TEADE

(N.Z. “Herald”, May 30.)

That tlic official figures do not justity t lio assumption that unemployment in New Zealand has become a permanent feature in economic life, or that it lias reached a stage at which it cannot be dealt with adequately by the Government with the machinery at its disposal, are two of several reasons advanced by the executive of the Auckland Employers’ Association for disagreeing with the report submitted to the Government by the Unemploymen Committee.

The executive considers that the only cure of unemployment is a revival of trade which, in a country possessing the natural wealth and resources of New Zealand should be quite practicable by increasing land settlement and removing disabilities under which the primary and secondary industries are suffering.

In a statement issued on behalf of the executive yesterday, tin; president, .Mr Albert Spencer, said:

“We are of opinion that the report is not complete, and therefore it is not an adequate analysis of causes of unemployment. The relative significance of such causes as have been assigned is immaterial until all other causes nave been ascertained, and, in any case, the survey of the position, having admittedly been only partial, is ' necessarily incomplete.

POWERS Ob' PROPOSED BOARD

“The proposed employment board could not he vested with the extraordinary powers proposed without overriding the authority of Parliament altogether, an extension of that bureaucratic control which is eontrarv to

;il'l principles of democratic' governmeat. While the Unemployment Committce expresses itself ns. being nnan imonsly of opinion that tlie adoption of an unemployment insurance scheme on the lines of those operating in other countries would be a very grave mistake it nevertheless proceeds to outline a .scheme providing inadequate relied from an iineollectalde tax.

’ “Unemployment is not an insurable risk like lire sickness, or accident. No scheme of insurance would tend to minimise unemployment, but rather to increase it. Unemployment is as much .a moral as an economic problem, and the individual responsibility to obtain arid retain employment cram not be shelved simply by registration am throwing the onus of responsibility on the community and the (Government.

“A DANGEROUS FALLACY.”

“The right to claim a sustenance allowance without working for it. or to demand a standard wage without earning it. would, if admitted, undermine the whole of the economic conditions governing employment. The relief of distress through humanitarian obligation which was always recognised. The contention, however, that the maintenance of surplus labour must be accepted as an economic liability on industry is a dangerous fallacy in a country like New Zealand.’

Regarding the use by the Government of the maemnerv now at its disposal, the executive considers that there might be some reorganisation, hut that there is no necessity for setting up another State department. “Although -,it is not proposed to elaborate the reasons which led to the above conclusion, the statement continues. “it might, by way of illustration. ho pointed out that, assuming the Government set up a hoard a- recommended in the report, for ■six months after the board began to function no relief whatever would he provided under the scheme. In fact, the position would he aggravated by the specialised taxation enforced withdrawing monies which might have been voluntarily expended in relief. “PROVISION UTTERLY INA DEQUATK.”

A fi er six months, assuming the board had in tin; meantime hor-i! able ,to exercise to the full its t,fixing power. a fund would be available

from which those out- of work, who also bad duly paid their share of taxation in the meantime, would lie entitled to ,sustenance allowance not exceeding thirteen weeks in any one rear. What is to become of them after that is apparently to be no business of the board.

“Such provision is, of course, utterly inadequate to meet conditions as existing now in New Zealand. The tact- is that the board would neither be able to provide work for the unemployed nor give adequate relief unless vested with powers which it is obvious could not lie given to an irresponsible body. “The Auckland Employers’ Association trusts therefore that the Government in dealing "with the matter will recognise, as is being recognised throughout “the world, that there is no cure for unemployment except revival of trade.”

Air Spencer said that his executive was unanimous that it could not support die ie,.ort, but before making any pronouncement it had referred tin 1 matter to the New Zealand Employers’ Federation. A ?ne<Va;ng of the executive 61 the federation was held last week, with the result t’bar Mr W. D. Hunt and Air I’. 0. Bishop, who were stated to have been representatives of the employers on the committee announced that as members of the committee, they were not the mouthpiece of any organisation, 'fho association, through the federation, were therefore not now identified in any way with the committee’s report.