BELIEF OF UNEMPLOYED

New Zealand Herald, Volume LXIV, Issue 19632, 10 May 1927, Page 11

BELIEF OF UNEMPLOYED

LOCAL FUNDS FOR WAGES. REQUEST FOR A SUBSIDY. QUESTION FOR THE CABINET. [BY TELEGRAPH. —OWN CORRESPONDENT. ] FEILDING, Monday. A deputation from the Feilding Borough Council, which vras received by the Minister of Finance, Hon. W. Downie Stewart, to-day. stated that the £ouncil had raised £2500 for unemployment relief under the special legislation of last year. Of that amount £SOO remained, but that would not meet the requirements for the coming year and the council did not feel disposed to raise any further money under that authority. A local theatrical company intended to run a series of entertainments in aid of unemployment, and it was urged that any money raised by local efforts should carry a pound for pound Government subsidy. If funds were available, the council would consider working a "gravel pit to supply nearby local bodies, with gravel at a cheap rate. The Minister said the policy had been to abstain from subsidising moneys raised in boroughs and cities. The Minister of Labour on some occasion had stated that it had been laid down in the late Mr. Massey's time that funds raised in that way were not subsidised, partly because it was felt that the Government would be doing work that could normally be done out of borough funds, and partly because it tended to draw men to boroughs and cities from the country. The speaker had suggested then that in his view it was an advantage to subsidise, provided the Public Works Department or some other authority certified that the work was such as might not be undertaken for some time, and provided the council took due precautions to see. that it did not mean an influx of men from other districts.

The whole question would come up again, as it was clear that there would be further unemployment this winter. Personally, he favoured the policy of subsidising local efforts on the lines indicated. Ho could not make a definite pronouncement until he had consulted his colleagues, as it might be held to be a bad precedent. He did not hesitate to say that the Government should do it. It would be a great boon to the Government to obtain such assistance from local bodies. Aftef his return to Wellington he would go into the matter and advise the deputation whether the Government would subsidise contributions raised in the way suggested. It was a new principle, a departure from policy, and he hoped to be able to agree to what had been proposed.