UNEMPLOYMENT

Manawatu Standard, Volume LV, Issue 49, 25 January 1935, Page 12

UNEMPLOYMENT

FUNDS IN HEALTHY STATE. EXPECTATIONS REALISED. WELLINGTON, Jan. 25. Tire advisability of having an adequate balance in the Unemployment Fund at the close of the present financial year to meet the normal increase in expenditure during next winter was mentioned bv the act.ing-Minister of Employment (Hon. S. G. Smith) when reviewing the position ,of the fund as at December 31, 1934. The finances of the board were in a satisfactory position, Mr Smith said, the cash balance in tiie fund at that date being £1,478,000. Against this balance, lie added, there had to be set off revenue received in advance estimated at approximately £150,000, and expenditure incurred to December 31, but not yet brought to charge, estimated at £753,000. This balance had to be increased by approximately £109,000, being revenue actually received to December 31 but n,-it paid over to the Treasury bv the collecting departments. The estimated actual surplus in the fund at December 31 was therefore £684,000. In addition to outstanding accounts of £753.000 at December 31, there were imprests out standing, representing vouchers paid but .not yet charged to the various accounts, of £488,000. The Minister explained that the estimated surplus of £684.000 represented an increase of approximately £249,000 •over the balance at the commencement of the financial year. This increase might bo attributed to the buovancy of the revenue, and to the fact that the numbers who had become a charge on the fund had shown an appreciable reduction against the corresponding period of last year. ‘‘lt is very nlcasing to report,” Mr Smith said, ' “that the revenue from unemployment taxation is well up to ■expectations. At the commencement of the financial year it was estimated that the revenue would reach £4,768.000 being £341,000 in excess of the actual receipts for the previous year. In view of the fact that the numbers seeking relief from the fund showed an appreciable reduction, it was decided to reduce taxation to lOd in the £ as from October 1, 1934, and to grant exemption to persons undei twenty years of age. In addition, certain other exemptions were provided, the effect of which will not be felt until next financial year. “The revised estimate, on the basis of reduced taxation for half the yeai, placed the revenue at £4,346,000. the actual receipts for the nine months ending December 31. 1934, amounted to £3,635,408. As previously explained, it .is estimated that approximately £150,000 of this amount represents revenue received, in advance, but even after allowing for this it appears that the estimate of £4.346,000 will be slightly exceeded. While the improvement in the revenue can to a certain extent be attributed to the operation ot improved methods of collection oi wages tax, there is no doubt that the chief factor is the steady improvement in industry generally.” FUTURE POSITION. The Minister stated that in considering the amount of the balance, it had to be remembered that taxation for the balance of the year would be received at the reduced rate of lOd in the £ and that in addition the recent review of the scheme No. 5 allocations would involve the board in additional ox pen(liture estimated on pr-esent registrations a.t £175,000 per annum. It would be appreciated that it was as much in the interests of the unemployed as of the taxpayers that a sufficient balance should b" maintained in the fund. “The effect ot the special exemptions a.nd the reduction- in taxation will considerably reduce the money available for unemployment relief during the next financial year,” concluded the Minister. “For this reason it .is essential that there would lie an adeciua.te balance in the fund r.t the close of the present financial year to meet the normal increase in expenditure during the next winter. The balance in the fund at December 31 would constitute, on the present rate of weekly expenditure, a reserve sufficient for about nine weeks' allocations.