UNEMPLOYMENT FUND

Manawatu Standard, Volume LII, Issue 256, 28 September 1932, Page 7

UNEMPLOYMENT FUND

SOUND POSITION SHOWN. LARGE SURPLUS ANTICIPATED. NO HIGHER SPECIAL TAXES. (By Telegraph.—Special to Standard.) WELLINGTON, Sept. 28. The Unemployment Fund is in a healthy condition, according to a brief set of important analyses of the financial operations of the board, given by Hon. A. Hamilton, acting Minister of Unemployment, in the House to-day. It is reliably foreshadowed that the actual revenue will exceed the estimate by £250,000 and that a surplus of £IOO,OOO is likely. An increase in special taxation is. not anticipated.

The Minister said it was difficult to make a statement as full and as definite as might be desired, because at any date large amounts.of money were either in process of being received or of being paid out. The particulars given, however, would be sufficient to indicate the general position of the fund.

When, in May last, the tax on wages, salaries and other incomes was raised to Is in the £ it was estimated that the Unemployment Board’s revenue from all sources would be about £3,600,000 for the year ending April 30, 1933, the Minister added. The board could now form a reasonably accurate estimate, and from the revenue received so far it was considered safe to forecast that it would approximate £3,850,000 in this period. Prior to the raising of the tax the board had revenue (including the subsidy from the Consolidated Fund). which was estimated to allow for a weekly expenditure of £50,000. By the increase in the tax from May last the board was provided with estimated revenue permitting a weekly expenditure of £69,000. In June it became evident that the sum would not meet the reasonable needs of the registered unemployed. Cabinet, therefore, authorised weekly expenditure up to £91,000 during July, August and September. It had been anticipated that this should tide the board loveir the most difficult montlxs of the year, after which, it was hoped, there would be an appreciable improvement in the unemployment situation and that the board would be enabled to balance its expenditure with the revenue.

The period for which the extra provision was made will terminate at the end of the present month, the Minister added. A HEAVY BURDEN.

To illustrate the heavy burden at present being carried, the Minister supplied details setting out the expenditure allocation from the fund in the four weeks ended September 10, 1932. Under Scheme No. 5 the amount was £269,409, the number of registered unemployed in the week ended September 3 being 49,380 working and 7076 standing down. Other schemes and miscellaneous items, including administration, accounted for £83,606, the number of men employed being 16,785. That represented a total expenditure allocation of £353,015 for 73,241 unemployed, or at the rate of £4,590,000. Pointing out that detailed statements as to the position of tire fund would be found in the annual report, the Minister added: “It suffices to say here that if all the commitments entered into by the board —taking into account the work that has been finished but not yet paid for, and forward work committed but which is still in progress of completion —were met there would be, excluding revenue received in advance, a surplus of over £100,OCX). This healthy position of the fund would give reasonable hope to anticipate that no further taxation will be necessary this financial year. This will, of necessity, depend upon calls made on the fund during the remaining six months of this financial year—that is, from October to March 31. Such calls may consist of an increased number of registered unemployed. It is reasonable, however, to hope that the present number of approximately 73,000 should be very materially reduced during the summer months. If this takes place the present taxation should provide sufficient revenue to meet requirements.” MODERATE COSTS OF ADMINISTRATION.

Continuing, the Minister disclosed that the burden of administrative costs on the fund was very moderate. Indeed, in the first instance nse was made wherever practicable of suitable clerical ■workers from the ranks of the unemployed, with the result that a considerable amount of clerical work was being carried out by these workers. Again, owing to the practice of operating the schemes where at all practicable through the ’existing Government or local body organisations, the expenditure on administration had been kept within a very reasonable compass. EXPENDITURE ANALYSED. Dealing with the total expenditure under all headings in the periods December 1, 1930, to March 31, 1931, and April 1, 1931, to March 31, 1932, the Minister recorded the following figures: Per cent, of £ total.

Total expenditure 2,273,537 These percentages had been calculated upon the actual expenditure in each financial year, which included amounts due and unpaid at March ol , in each year. . “It is questionable if in any other part of the world the financial arrangements of the Government for handling •unemployment problems are as sound as in New Zealand,” the Minister concluded. “The whole of this money, amounting to between three and a half and four million pounds, is being raised by taxation and not from capital expenditure. The payments given to relief workers continue to be paid on the return for the work done. Most of this work is useful and is building up valuable assets for New Zealand without adding to the national debt.”

For tho 4 months ended Mar. 31, 1931.—Administration Expenses Board members’ fees and 9,315 2,034 2.17 .47 Relief schemes 418,181 97.36 Total expenditure .... 429,530 For tho year ended Mar. 31, 1931.—Administration 52,388 2.30 Board members’ fees and 2.627 .12 Relief schemes 2,218,522 97.58