SUBSIDISED WORK

Nelson Evening Mail, Volume LXXII, 18 January 1939, Page 4

SUBSIDISED WORK

SOME TO CLOSE DOWN MINISTER’S DECISION (United Press Association! WELLINGTON, 17tli January. Although work being done by local bodies under subsidy from the Employment Promotion Fund (Scheme 13) was, in most cases, valuable as it created public assets, the Government was anxious to see the men engaged diverted into normal channels of employment, and consequently other avenues were being investigated, the Minister of Labour (the Hon. P. C. Webb) stated to-day. In future, applications for subsidised labour would be closely examined and approvals would be limited, and, in adition, the less valuable works being done through the subsidy would be discontinued.

To encourage workers to go on to farms, the subsidy under scheme 4b would be increased.

“The works being carried out by local bodies with subsidised labour are in most cases doubly valuable in as much as they are creating public assets for the country and at the same time providing employment for men who. pending absorption into normal employment or receipt of social security benefits, would have to be placed on more distant Government works or upon sustenance,” the Minister said. “On the other hand, the subsidising of such works cannot be carried on indefinitely, and in view of this and the fact that plans now in preparation are expected to result in the employment of a large number of men in industry u will be possible to close down or taper off some of the special subsidised works where the expenditure involved may be considered -out of proportion to the potential asset. To this end a review of all subsidised works will be put in hand shortly and the least useful or required will be discontinued, reasonable notice being given to the employing authority in each case. Applications for subsidising of new works will, of course, be subjected to very close examination, in order that approvals may be strictly limited to the economic value of the work and anticipated available labour supply. PLANS FOR FUTURE “Although several avenues of additional employment are being explored,” continued Mr Webb, “it is not practicable at thos stage to give even an outline of such, but a full announcement will be made at the appropriate time.

“It may be mentioned, however, that with a view to increasing the volume of farm developmental work and enabling a somewhat greater number of men to obtain work at their usual occupation, or at an occupation in which they will acquire some useful knowledge, it has been decided that from 30th January the subsidy on this class of work performed under scheme 4b shall, in the case of applications received after that date, be increased from 50 per cent, of the labour cost to 75 per cent, thereof. The conditions of the scheme an not being changed and it will be necessary, as hitherto, to restrict employment upon each contract to men engaged from the unemployment register through district employment officers or certifying officers, as the case may be.”