NO INCREASE LIKELY IN WAGES TAX

Manawatu Times, Volume LIV, Issue 7211, 18 July 1933, Page 7

NO INCREASE LIKELY IN WAGES TAX

Minister Accounts for His Stewardship The speaker at the luncheon of the Palmerston North Notary Club yesterday -was tho Hon. A. Hamilton, who holds the important folios of Post-master-General and Minister of Employment. In the course of an address under the title of “Unemployment,” he had much to tell Rotarians of what is being done by tho Government to master the worst of all problems to-day, and the efforts being made to adequately provide for New Zealand’s army of workless. “Unemployment, I hope, is only a passing phase of our national life, but in the meantime we have to deal with it; it just cannot be helped,” declared the Minister. “I want to show you if I can just how we are dealing with unemployment in New Zealand. We are passing through a period of transition, and there are many theories and many schemes as to how we should deal with it, but in tho meantime there is nothing for it but to confine ourselves to tho practical side “of things. Much of our trouble, I think, is attributable to the war, which was never really paid for. That fact is just coming fyome to us and we have got to make some sacrifice. We have all been on a new level of living since tho war and there must naturally be some adjustment. We were enjoying a very good standard of living before the war and to get back to that cannot do any harm. The trouble is that to go up a little in our standards has been very easy but to come down again by even 2 or 3 per cent, is very distasteful—it is worse than having teeth pulled. The problem is with us and it is less for us to reason why than to get on with it. These men who are unemployed are hero to work and we have got to find them an occupation.

Present Tax Sufficient. “Quite naturally the business men are anxious to know whether there are likely to be moro taxes put on to sustain the Unemployment Fund. The taxpayer in New Zealand is very hard pressed although not so badly as in some other countries. The demand for relief, however, is all the more justified because in many cases the means of paying are fast vanishing. But the unemployed themselves have struck the storm worst of all. Most of them are good, honest citizens, anxious to do their best for themselves. There may bo a few others but there are not many of them in New Zealand.”

The Unemployment Board last year spent £150,000 less than it received in revenue, said the speaker. This saving gave tho board a good start for the presont year, which was commenced with over £200,000 in hand as contrasted with an initial credit of £74,000 for .the previous year. However, when it was realised that tho sum of £150,000 saved out of revenue represented only 10 days’ allocation, it would be seen that the board was not in any way indulging in bad finance. For tho 1933 term of the board the estimated revenue would bo £4,300,000, a pleasing feature being that tho amount coming to hand from the wages tax was greater than for 1932, indicating that there were more people in employment. Or elso porhaps that they wore paying better, remarked Mr. Hamilton. “This gives us a weekly income of £83,000, but at present, during the winter period, wo are allocating £94,000 weekly, or £II,OOO more than our incoma There is nothing unsound in this, as the need of tho people is greatest at the present time and we can meet the greater strain on our fund'to-day without anw difficulty even if the registrations should increase by 5000 or 0000. “There is therefore no need for fear among tho business people that there will be any call for a further tax. I know the business people are looking for some relief and although this may not be immediately possible there is certainly no likelihood of a further tax this year. One of the valuable features of the administration of relief in New Zealand, as far as tho board is concerned, is that wo are leaving no debts behind us, and at the same time we are building up assets at the rate of £2,000,000 worth per annum. Therefore when the unemployment problem ceases to be acute, there will be no outstanding debts and valuable assets left in the country. “We work largely through the local bodies, and I would like to pay tribute to the way in which they are helping us,” said Mr Hamilton. “Actually the board employs practically no men, that is all done by the local bodies, which receive the valuo of the work done. I believe that the local bodies which make good use of tho men’s time will bo able to assist themselves considerably. Many of them are certainly doing so. The Forestry Department and tho farmers are also receiving considerable benefits from the work of the unemployed.” Justifying the principles of awarding relief, the Minister' said New Zealand had adopted a policy of no relief without work, and this policy met with approval among most of ithe men. The board also had no camps of its own, most of the camps being Public Works establishments, and to-day there were 10,000 men in them, as well as another 2000 or 3000 in other camps. Most of the men in camps wore directly engaged on productive works. There were also 10,700 people employed in farm work under tho assistance of the board, and much valuable developmental work was being done. Another popular scheme was the mining one, over 3000 men being engaged fossicking for gold. Most of tho recent finds had been made by subsidised relief workers, many of whom ceased to be a responsibility on the board after they had ma£o good. The essence of gold discovery was not scientific work, but to have largo numbers of men engaged searching while science played its part in the after-development of a strike. • Another valuable scheme was the subsidy extended to the flax industry, while of late the building subsidy had more than proved its worth. Sinco ’ts inaucuration a month, ago £7oo*ooo

worth of new building had been authorised. Tho need was apparent if we considered that last year expenditure on building in the Dominion was only £1,500,000, whereas a. few years ago it was five or six millions. Moreover, fully 80 per cent, of building costs were appropriated directly or Indirectly in wages. Tho latest registrations showed 67,778 men depended on tho board, and it was quite possible that tho numbers would rise to 75,000 before the summer months. However, it should bo possiblo to cope with theso without cutting the allocation to those already drawing from tho funds.

A great source of contention was the method of allocation under the No. 5 scheme. The policy adopted was that of giving the greatest relief where the need was greatest. There was thus a differentiation between town and country, but this was equitable in view of the fact the distress was admittedly greater in the centres. However, the State, while it did its best to find men work, never accepted entire responsibility for providing sustenance. Individuals as well as local communities had dofinite obligations in this Tespect. They also had to bo careful that relief work would not be made moro attractive than the Tegular avenues of employment. The Government definitely oncouraged the men to seek work for themselves without curtailing the

amount of Tclicf afforded them, and many were doing what they could to find private employment^