VIEWS OF LABOUR.

New Zealand Herald, Volume LXVII, Issue 20620, 19 July 1930, Page 13

VIEWS OF LABOUR.

FLAT TAX CRITICISED.

BURDEN ON RANK AND FILE. NEED FOR PROVIDING WORK. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Friday. "I think it is a cause for congratulation that we have reached a stago where tho House has before it proposed legislation to deal with tho unemployment problem," said the Leader of tho Labour Party, Mr. 11. E. Holland, in expressing his views 011 the I ncmployment Bill in the House to-day. The principles of unemployment insurance had come into the social legislation of a number of countries during recent years. When tho Leader of the Opposition talked ot tho "dole," ho had to remember that (he British system grew out of the post-war conditions and that had it not been for (hat system of unemployment insurance, England would have found herself in tho throes of revolution. Mr. Holland said that- so far as the present bill was concerned, everyone recognised that legislation of tho kind it suggested was only a palliative for coping with conditions which arose from the fact that men and women had 110 work to do. Ho did not agree that tho causes of unemployment in New Zealand were the same as those in other countries. The Reform Party's immigration policy was in a major degree responsible for unemployment in tho Dominion. Legislation a Palliative. New Zealand had anything up to 10,000 men tvho desired the right to work. What was to be the alternative? Charitable aid would not help. What the workers wanted was tho right to work. That was the fundamental thing that ought to be kept before the people and (he legislators. Tho only effective method of dealing with the problem was to provide work. There was no more dangerous theory than that when a man was o;it of work lie should receive no pay.

The bill does not satisfy nie, but it provides Parliament with the opportunity of dealing with (ho greatest problem facing the peoplo of the country to-day," said Mr. Holland. " When this bill has gone through in whatever form it will, it still remains an inefficient palliative unless tho Government is prepared to make a companion to (his hill in (lie form of another bill (o njake a comprehensive arrangement for providing work (hat is needed."

Referring to the clause limiting (he State subsidy to be paid from tho Consolidated Fund into the unemployment fund to half tho expenditure from (ho fund, Mr. Holland said that he and members of tho Labour Party thought there should be a pound for pound subsidy on contributions. Method of the Levy. " Wo do not agreo with tho flat tax," 110 continued. " The bulk of (he (a\will be paid by (he working men, not by tho wealthy men. My objection is that it will throw tho heavier burden on tho rank and file, more so than 011 those with largo incomes. As tho bill stands it places a burden of 30s 011 every man over 20 years of age, irrespective of the fact whether a man earn 30s or £3O a week. We think that the money should be raised by the graduated system and not by a flat tax. " We think it a mistake (o cut women out of (he benefits of unemployment insurance," declared Mr. Holland.

Tlio Minister of Labour, the Hon. S. G. Smith: Will you say what you think women should pay ? Mr. Holland: I am talking on the broad principle, hut I do not think it f.-iir to the women workers that when they are left without employment there will ho no sustenance for them. Representation of Workers. On tho flat rate principle the workers were providing more than the employers, and the Labour Party claimed that af least four workers' representatives should ho on the hoard. "In the matter of sustenance allowances I was hiteresled to hear the Leader of the Opposition say that lie and his party were opposed to sustenance, and definitely declare in favour of charitable aid," said Mr. Holland. " No, no," replied the Right Hon. J. G. Coates and other He form members in a chorus of interjections. " 1 am sorry if I misunderstood the Leader of the Opposition," Mr. Holland replied, " but that is all I could fcako out of what ho said. Sustenance represents an insurance paid for by contributions on the part of those who work. I think that the people of this country definitely reject the suggestion of what amounts to charitable aid." Mr. Holland- said tho Labour Party did not think tho sustenance rates were high enough. It was thought that tho contributions should not be less than 25s per week for tho husband, £1 for the wife, and 5s for each child.