COST OF RELIEF

New Zealand Herald, Volume LXXI, Issue 21807, 23 May 1934, Page 14

COST OF RELIEF

tfHE UNEMPLOYMENT FUND OPERATIONS FOR YEAR ' EXPENDITURE OF £4,301,000 EXPLANATION BY MINISTER [by telegraph —OWN correspondent] PALMERSTON NORTH, Tuesday An outline of the position of the Unemployment Fund at the close of the financial year ended March 31 last was given by tho Minister of Employment, Hon. A. Hamilton,. to-day. He stated that the final audited figures were nor available, but that the estimated position was sufficiently known to enable him to make a provisional statement which to all intents and purposes would bo accurate for general information. "It has been noticed from the press that statements have been made publicly to the effect that the Unemployment Board does not publish its financial position," stated Mr. Hamilton. "Statements have also been made from time to time that the board is holding a very large cash balance and is endeavouring to build up a large reserve fund. Neither of these statements is correct, At the end of each financial year the board publishes an annual report and in that report details are set out of the board's receipts and payments. This annual report is available to any member of the public who desires to perUse it. "Further, a statement of the financial position as at September 30, 1933, was published in the press on October 37 last. In this, published statement it was shown that at the commencement of the financial year, April 1, 1933, there was in the fund an approximate surplus of £334,000. At tho beginning of the year the board estimated that its revenue for the financial year would be £4,300,000. The actual revenue for this period was £4,411,000.

Estimated Surplus £444,000

"This revenue added to the £334,000 previously mentioned gave a total fund available for the year of £4,745,000, The total expenditure from the fund for the financial year, together with commitments estimated to accrue due for payment before March 31, 1934, was £4,301,000. It will therefore be seen that there was at tho end of tho financial year an estimated surplus, calculated on tho same basis as at the beginning of the year, of £444,000. "These figures show that out of a total expenditure of round about £4,500,000 for the financial year tho board has ended tho year in a better financial position to the extent of £IIO,OOO. This amount is about 2} per cent of the total revenue for the year. The result of tho year's operations should be satisfactory to those who provide the funds, and it should be evident to relief workers that due regard has been given to their needs consistent" with maintaining a balanced fund. Cash Balance in Fund '"Putting the matter in another way, if the board took into account all its commitments, including those to accrue due for payment after March 31, which amount to £627,000, it would be seen that the surplus in hand would not be sufficient by an amount of £183,000. It is reasonable, however, to allow commitments that will fall due after" March 31 to be at least partly balanced by revenue that will accrue during the same period. 1 "Exception has on several occasions been taken to the amount of the cash balance in the fund," continued the Minister. "/It will be seen from the last annual report that cash in the fund at March 31, 1933, was £424,426. At the end of last financial year, March 31, 1934, the cash fund was £621,518. This larger amount is accounted for mainly by the fact that there are greater future commitments at this, latter period than at the former. Further, it is always necessary to have a fairly substantial cash balance because many of the outstanding accounts do not reach the Treasury until some considerable time after the date of payment."

"STAND-DOWN" WEEK WHANGAREI ARRANGEMENTS [from our own correspondent] "WHANGAEEI, Tuesday Matters in connection with relief "works and "stand-down" week were discussed iby representatives of the .Whangarei local bodies to-day. Mr. R. D. P. Ronayne, district engineer of the Public Works Department, V. ho was present by invitation, stated that ifc was the aim of the department to keep the in continuous employment. He outlined the conditions at the camps and arrangements made for the men's comfort. The department was unable to /take any "further married men at present, but as soon as the estimates were approved, say within three months, a considerable number of married men could be absorbed for new works. The conference decided that the future selection' of relief workers for the "i>fand-down" week should be left to a committee of five, representing the local bodies, the Relief Workers' Association, and the relief workers not in the association. Jt was also decided that the Borough Council and Harbour Board should provide for a minimum of 20 and Jo men respectively during "stand-down" week, for two dgys per v.<-ek until the end of August. There are approximately 180 relief workers residing in the borough of Whangarei.