UNEMPLOYMENT PROBLEM.

New Zealand Herald, Volume LXVI, Issue 20405, 6 November 1929, Page 11

UNEMPLOYMENT PROBLEM.

PLANS EOE SOLUTION.

REVIEW BY MR. THOMAS.

EXPLANATION OF POLICY. EMIGRATION AS FACTOR. TRADE WITH CANADIANS. By Tplep^aph—Press Association—Copyright. British Wireless. RUGBY, Nov. i. In the House of Commons to-day Mr. J. IL Thomas, Minister in Charge of Unemployment, made a statement on that subject. He recalled the fact that when ho first addressed the House on the question ho indicated that he had no magic cure for tho problem. The Minister said he had made it perfectly clear thon, as he did now, that it was not a temporary problem. If it were ho would be able to deal with it by temporary means. Capital had been made of tho fact that since the Labour Government came into office tho unemployment figures had increased by nearly 100,000. When 12 months ago the late Government was in oflico tho figures increased in precisely the same period by 200,000. That merely indicated tho seasonal changes which were inevitable and was not a real test of tho unemployment problem.

Big Public Works Contemplated, Mr. Thomas proceeded to indicate tho broad view on which he based his policy. The first point was: How, by the expenditure of public mbney, could they find employment in work which, in itself, would increase the efficiency of the nation and not add to the general burden of industry by dead capital 1 The second point was: How could the Government rely on tho import and export trades and stimulate the productive capacity of industry generally ? The third point was: How could the great potentialities of the Empire be developed and how could the Empire be encouraged to contribute to both these objects 1 Mr. Thomas said he had set up a committee composed of representative men of all classes to examine the question submitted under the first category. In three months that committee had passed various schemes involving a total expenditure of £7,000,000. That was divided between the Great Western Railways, the London, Midland and Scottish Railways and the Metropolitan Railway. Total Expenditure ol £42,000,000. The Minister said he hoped legislation would make it possible to begin the work of building the new Charing Cross station before next May or June. He trusted that the work of reconditioning Waterloo Bridge might be started before Christmas.

Every endeavour was being made to reach a settlement between the parties concerned whereby a tunnel under the River Thames, between Dartford and Purfleet, might be constructed. That scheme involved £3,000,000.

In attempts to speed up the development of Britain's colonial Empire £3,000,000 was to be spent on the Zambesi. It was estimated that the sum named would provide employment in Britain fou 50,000 men. The total expenditure on all the schemes mentioned would be £42,000,000. Other schemes were under review involving many millions of pounds. Work Achieved in Canada. With regard to Mr. Thomas' visit to Canada he said he told tho Canadians that the people of Britain were their best customers for their natural products. For every pound they spent with Britain they spent £5 with the United States. Ho had concentrated on coal. Canada imported 16,000,000 tons of United States coal last year. He knew Britain could not hope to compete for the whole of the 16,000,000 tons, but in St. Lawrenco 2,250,000 tons of United States coal were used and on that he had concentrated.

Some years ago, for a lime, Britain had sent hard coal to Canada.

The Minister said ho had asked the Canadian wheat pool to face economic facts. At present every elevator at Montreal was filled with last year's wheat and 36 ships were lying in tho harbour there full of unmoved wheat. Britain could not be expected to send goods to Canada if the ships had to return in ballast. No Dumping Ifi the Dominions. Mr. Thomas said it was a profound mistake to mix tho questions of migration and unemployment, because it conveyed to tho Dominions that Britain wanted to dump her unemployed there, and tho Dominions resented that. Many men were not! prepared to migrate i because their dependants would lose their rights to pensions if tho breadwinner died overseas. Many parents wero prevented from joining their children in tho Dominions because it would mean the loss of their pensions. The Government's bill provided for tho removal of those anomalies as well as tho hardship on widows of losing pensions by migratinc. Criticism by the Opposition. Sir L. Worthington Evans, Conservative member for Essex, formerly Secretary of State for War, said all the schemes Mr. Thomas had outlined would only employ 36,000 men. The Government had disorganised the motor trade by its unwillingness to promise to continue tho McKenna duties. Owing to the losses of New York speculators thern was -a danger of tho dumping in Britain of motor-cars, artificial silk, wireless apparatus and gramophones. Mr. Lloyd George, Leader of the Liberals, described Mr. Thomas' schemes as timid, pusillanimous and unintelligent. He said they wero only likely to provide work for one-third of tho men who had been added to the unemployed' register since tho Labour Government came into office. Mr. J. Maxton, Labour member for Bridge ton, Glasgow, and chairman of the Independent Labour Party, said: Someono stated that Labour would be in power for 20 years. They would need every hour of that time at tho present rato of progress. Continuing, Mr. Maxton said Mr. Thomas had indicated that he had not attempted to advance a solution of the problem on Socialistic lines. One of Mr. Thomas'' greatest qualities was that

ho knew how to change front at the appropriate moment. Never was there a more appropriate moment than now to turn from capitalist philosophy. . The Minister was granting £40,000,000 to the capitalists. A similar amount would not be too much to put directly into the pockets of the unemployed. That was the only way to solve the problem. Sir Oswald Mosley, Chancellor of the Duchy of Lancaster, replied to the debate, lie dotailed a number of arrangements made with municipalities for works, such as water supply, which were intermediate between revenue-producing and non-re-venuo-producing schemes.

In those cases tho Government was increasing the grants to 41 per cent, of tho interest, compared with the previous 26 per cent, granted to tho municipalities.

Mr. Thomas' speech on unemployment is generally regarded by politicians and tho press as disappointing. It contained no surprise and tho actual or promised achievement is far short of what had been hoped by many of the Government's supporters. ,

The Daily News suggests that Mr. MacDonald should givo Mr. Thomas another post and appoint a better man in his place.

The Daily Herald is not enthusiastic. It says tlio Minister's statement shows that his hard, gruelling job is being tackled with a thoroughness that is bound to bring success.