TO CONTINUE

Nelson Evening Mail, Volume LXIV, 19 June 1931, Page 5

TO CONTINUE

NO. 5 RELIEF SCHEME

SUSPENSION DECISION REVERSED

DOMINIONS IDE DEMAND ACCEDED TO

STATEMENT BY PRIME MINISTER

(By Telegraph—Press Association)

WELLINGTON, 18th June.

Cabinet has reversed its decision to suspend operations under tho No. 5 unemployment relief scheme at the end of this week. The Prime Minister (the Right Hon. G. W. Forbes) announced this afternoon that the Government had given further consideration to the unemployment problem, and to the numerous representations which had been made for tho continuance of scheme No. 5. The Prime Minister stated that although tlie facts of his previous statement and the reasons which led up to the announcement of the suspension of No.' 5 scheme had in no way been altered, the Government had, under the special circumstances, and in view of the wholehearted demand from all parts of the Dominion, decided upon the temporary continuance of the scheme. One of the first, duties of Parliament would be to consider the question of funds for the Unemployment Board, and the Government intended to bring down legislation at the earliest opportunity in tho forthcoming session with that end in view. In the meantime, however, as the result of the earnest representations already referred 10, and with a view to relieving the unfortunate position in which many people were placed through lack of employment, the Government-had decided upon the continuance of the scheme until such tune as Parliament could deal with the pioblem of additional finance, which, based 1 on the large numbers of unemployed now to he dealt with, was essential. The Government realised, said the Prime Minister, that tho responsibility for the stability and increase of the unemployment funds would rest, upon Parliament, and as the session would, commence within a wees, he had every hope that reasonable provision would be made so that relief could be continued.

REQUEST FOR £60,000

INTERIM RELIEF

A request that the Government should find sufficient money—estimated at £6o,ooo—to enable relief to be given to the unemployed throughout the Dominion until Parliament makes a new authorisation, was made to the I rime Minister by a deputation from several Palmerston North local bodies, reports “The Post". , T Tho member for Palmerston, Mr J. A. Nash, said there were at least 1100 unemployed in Palmerston alone, apart from those in the surrounding districts, and it was safe to say that two-thirds of them had families to support. Single men had averaged 13s 6d per week in earnings under the No. 5 scheme, inclined men £1 8s U;d, and married men with families £1 17s 6d. He thought it would be generally agreed that a single man’s earnings under the scheme made it impossible for him to pay his board; that the married man on £1 os lid a week was not in a position to live; and that the man with a family would have to pay at least £1 or 25s a week for rent 'alone. Notwithstanding those facts, the No. 5 scheme had enabled nianv people to. exist. It had been be - ter than nothing. But now it was to be discontinued until Parliament voted more money. The apparent cost of the scheme to the Unemployment Boaid had been about £40,000 a week. Some provision should be made for at least a week and a half until Pa l ' ll ?™,®" l could deal with the question, and that would mean approximately “We are here,” said Mr Nash, to urge the Government to provide that sum in order to, allow the work to go on. Ho said he had telegraphed to the Leader of the Opposition suggesting that he should support anything that was done by tho Government to provide money for the unemployed until larhament met, and Mr Coates had replied: “Agree with your views, and am prepared to support suggestion. Mr Nash Said he felt sure that whatever action the Government took would be ratified by Parliament. The position was becoming despgrate, and it looked as though a further £I.OOO 000 would have to ho found for unemployment. Mr Nash’s remarks were supported by Mr -J. Linkiater, M.P; for Manawatu, who also said he felt the. Prime Minister would have the backing of Paihament anil the people of, the Dominion if he provided the money. Mr A. E. Mansford, Mayor of I almerslou North, said that the people who wei-s dependent on tho relief scheme were only receiving enough to buy food, and as time went on the position, was getting worse. He was of opinion that the sclieme could be enlarged fiom . financial point of view, and lie suggested that in addition to the present scheme a contributory scheme on the basis of 3d in every lOs should he initiated He felt sure that would have the support of the working people; lie saw treason why they should not support it The reduction in wages was hound to make the position worse. The‘Prime Minister (the Right Hon. G. W. Forbes): “Do you think the cost of’ living is coming down?” . Mr Mansford said it was coming down in some directions, but not in at Rents were not coming down. The point S„, whether the cost of living was fa 1g n proportion to the reduction m salaries He did not think it was. Mr A. J. Phillips, secretary of the Palmerston North Hospital Board, an Mr J. Hodgens, secretary of the local unemployment committee, also supported the request, Mr Hodgens remarking that Mr Forbes’s predecessor would never have allowed the unemployment position to reach the present stage, whkh represented a blot on the country’s record.

CABINET TO CONSIDER In replying, Mr Forbes said it was as well that the people should understand the position m respect to t finances, and there was no use trying to cover up the facts. He had asked the local bodies and other organisations to’do their best to afford assistance until Parliament gave authority for raising more money, and he had had intimations from several, bodies that they were unable to assist. At one time it was regarded as one of the functions of the local bodies to do what they could to give relief in their own particular disMr Nash: “Times were better then.” Mr Forbes: “I am not saying that the position is the same as it was then. I know the local bodies are having then difficulties just as the Government is, md that the assistance under the unemployment schemes has been a great relief to them.” The Prime Minister said he was informed, that shopkeepers and others were passing on the ieduction in wages, and be said it was only right that rents should be reduced also.

In a great many cases that had been done. It was only by all pulling together that the prevailing difficulties would bo overcome. He said he had called a meeting of Cabinet in order to consider what could be done in respect- to the No. 5 scheme—to see if it, or some portion of it, could be carried oil so that the whole weight would not fall on tho local bodies. “You have no fear, have you, Mr Nash asked, “if you agree, to the expenditure of £60,000, of Parliament not ratifying it?” . Mr Forbes : “No, none whatever. 1 feel confident Parliament would do so. The only difficulty we have in the matter of finding these sums of money is our own difficulty of public finance. However, I am going into the position, and I shall be able to make a statement in regard to it to-morrow.

EFFECT OF DECISION 36.000 MEN KEPT IN EMPLOYMENT WELLINGTON, This Day. The Unemployment Board will adjourn for a week from to-day following upon a settlement of the question of providing work for men employed under No. 5 Scheme until Parliament has a chance of voting more money for relief purposes. The result of. tho Prime Minister’s announcement that the Government lias stepped in to finance the scheme in tho interim is that over 36,000 men who would otherwise have been left without ■work will be kept in employment.

, DIRE DISTRESS

FACED WITH STARVATION CONDITIONS IN AUCKLAND AUCKLAND, 17th June. An urgent request to the Government to deal with the unemployment question as soon as possible after the opening of Parliament was made to the Prime Minister to-day by the Auckland Social Workers’ Association, which is composed of 38 of the institutions in the city engaged in the distribution of charitable relief.

The message was as follows: — “The social workers of Auckland urge uiion'tliG Gptfomment the necessity of dealing with the unemployment question on the first days of the , opening of Parliament. Never in our history have vve been faced with so much destitution as at present. Should the depression continue much longer, we are convinced that many of our citizens are faced with starvation. There are hundreds of people who will not report themselves at tho Hospital Board, and are at this time receiving help from various social workers. We, as social workers, are absolutely helpless to cope with the distress unless the Government comes to our help. The position has been made desperate owing to the Withdrawal of relief work under the No. 5 scheme. We will.co-operate with the Government in any scheme or schemes that will bring relief to the destitute families of oui city. Wo pray that this message will bo considered as urgent.” The farmers of tho Auckland province, through the local branch of the Farmers’ Union, to-day offered to send quantities of food into the city free ot charge for distribution to distressed families. The gifts will include vegetables, meat, eggs,' and farm produce of all descriptions. The Railway Department is being urged to permit the carriage of such goods free of charge, as was done during the Hawkes Bay earthquake, provided tho destination of the goods is a bona-fide agency for the distribution of charitv.

INCREASED LEVY AND INTERNAL LOAN

AUCKLAND, 18th June. The Auckland Chamber of Commerce passed a resolution recommending the Government that as it is obvious that tho present finances are insufficient, the Government should increase the unemployment levy, relief workers to bo exempt. The mover said ho thought the levy should not be paid by those earniiisr less than £4 10s a week. _ The chairman of tho Hospital Board in an interview with the lion. W. A. Veitcli, strongly urged that the Government should raise a compulsory internal loan for unemployment relief.

THE EARTHQUAKE AREA ' NAPIER, 17th June. Owing to tho suspension of the No. 5 scheme the Hawkes Bay Hospital Board decided to-day to telegraph the Prime Minister asking that on account of ‘ the extra hardship caused by the earthquake the provisions of the scheme be allowed to continue in this district for the employment of local residents. One member said that the Government seemed to have forgotten the earthquake.