TO SOLVE A BIG PROBLEM

NZ Truth, Issue 1274, 1 May 1930, Page 7

TO SOLVE A BIG PROBLEM

Representative Opinions On The Unemployment Relief Scheme

EFFECT OF BUYING MORE N.Z. GOODS

When the Cabinet's plan for the relief of unemployment) arising out of the Special Committee's report, is published, it will be interesting to note the extent to which it will deviate from the committee's scheme. "Unfortunately, many unemployed will suffer cold and hardship before the scheme is put into execution. A special session is not to be called 'to deal. with the question; it will form the purport of a bill to be placed before Parliament at the ordinary session m June.

A FEW weeks ago "Truth" promulgated a plan — providing for a Penny Amusement Tax — to alleviate distress pending the inauguration of a scheme to provide work for the unemployed. The opinions of representative citizens on the plan were sought and the majority spoke m favor of it. Most of those approached had not then had sufficient time to study the Special Committee's scheme, to enable them to express their views on it. Subsequently, however, a number of opinions on the scheme and unemployment generally were gathered by "Truth" and a few, which may be regarded as fairly representative of various sections of the community, are printed hereunder. They provide interesting reading m the. light of the Special Committee's report and the Government's avowed intention to formulate a relief scheme. MR. E. SALMOND (president of the Wellington Chamber of Commerce and of the New Zealand Political Association): "It seems to me a genuine and commendable

attempt to grapple with the problem. "There is no doubt that the business community at large is taxed very heavily for purposes of unemployment, the burden of furnishing relief falling upon many individual firms. The propos a1 s of the

committee wi 11 serve to establish the relief upon a national basis and the universal taxation proposed would bring home to everyone the fact that they are personally interested m the welfare of their fellows." . MRS. A, I. FRAER (a Christchurch City Councillor and prominent social worker): "I think that it is a wellconsidered and well-balanced report, and that the Committee have worked along the right lines.. The recommendation that the public should be urged to support New Zealand's secondary industries should be adopted. The public should be educated to buy. New Zealand goods, and it is the duty of the Press to educate them." MR. E. F. WILCOX (Secretary of the Christchurch Returned Soldiers' Association^ : "I am entirely opposed to the dole system or the taxing of men m employment to provide' funds for those out of work. The employment of men on relief works only tends to make the position worse m, stead of bettering it. We have the same men on the unemployment books every year. The majority of the men put of work are unskilled laborers, but are quite capable of working at. trades. "The Returned Soldiers' Association has a scheme whereby returned soldiers of this class are placed m trades and are subsidised by the Association until they become proficient. I think that it would be a good thing if other unemployed men could be engaged m the same way but the difficulty would be to have them subsidised." MR. WILLIAM WALLACE (chairman Auckland Hospital Board): "I have not considered the report of the Committee on Unemployment very deeply. As soon as I „ realised their scheme conferred on people out of work the right to receive financial assistance, I did not continue my study of the report. Through my experience on the Charitable Aid Board I am sure that such a scheme will inevitably result m the permanent pauperisation of our workers* and the loss of our independent spirit. Even with the strictest watch against slackers and malingerers, there cannot help but be a demoralising effect from the receipt of money that has not been earned. "Incidentally, I would like to endorse 'Truth's' scheme of an extra 1 penny on amusement prices. While it would not provide sufficient money to alleviate distress entirely, it' would certainly be of great assistance to "charitable aid and incidentally would help to relieve the ratepayer of the rapidly increasing burden of the hospital rate." MR. A. F. STACEY (a prominent Christchurch business man): "Numerous schemes have been suggested, and have been tried m most cases m

various parts of the world. Among these are profitsharing, co-oper-ative ownership, unemployment insurance, the dole, shorter hours, restriction of immigration, special taxation, higher tariffs, and Government relief works. Not one of these schemes actually creates profitable work;

or, at least, . does not permanently alleviate unemployment. "The only solution to the present problem can be obtained by the development of local industries on sound lines. People m New Zealand should help themselves to create work by. buying New Zealand goods. If they cannot get the class of goods they require of Dominion manufacture, then they should buy British goods. Only foreign goods of an extremely necessary nature should be bought. "The development of local industries,, or the purchase of local goods by our own people, would enable the unemployed to be absorbed, the money would be kept m the country, and the spending power of the community increased. The country is suffering from lack of production, or spasmodic production, which prevents factory efficiency. "I believe that if a total embargo were put on such lines as boots, timber and blankets, etc., unemployment would be considerably reduced immediately. . "If New Zealand manufacturers could secure their local trade, unemployment must automatically disappear. Other factories would arise nnd the present ones would be working full pressure."

P. R. Climie (Secretary of the Canterbury Progress League): "I can suggest no remedy for unemployment, but as a palliative I consider that Main Highway construction should be proceeded with. The attitude of my League is that an endeavor should be made to expedite this work

"If the construction of highways were carried out now the double purpose of employing men when they are most m need of work and of improving roads for motorists would be served. At least 50 per cent, of the money spent on roads goes m wages. "The Christchurch Unemployment Committee have submitted a proposal that a loan be raised to carry out the work and that the interest and sinking fund on this be met out of the revenue from the tyre and petrol tax.

"This appears to be an attractive suggestion, but it will require careful examination before one can say definitely whether it is economically sound. A committee of the League has been appointed to go into the matter. "Some of the points to be', considered are the economical effect on the country m raising the loan; whether it should be raised m the country or out; whether it coulcl be raised by present authorities or whether special authorities be appointed; the allocation of the expenditure between the two Islands; the rates of pay; and the effect the scheme would have on industries such as farming." MR! GEORGE FINN (president, Auckland Manufacturers' Association): "I am entirely opposed to unemployment insurance, which, once adopted, will perpetuate unemployment. I think that consideration of temporary measures may lead to the discovery of a solution of the problem. My scheme for employment assurance, which I propounded at the National Industrial Conference, seems feasible, but the Government committee appointed to consider it and other schemes have never asked me for a detailed plan. : "Roughly, "1 suggest that everyone over sixteen should contribute! one shilling monthly to a central fund. I estimate the . annual income at £500,000, ample to supply work for all the unemployed. A large percentage of the money would return to the fund, and all would be kept. in the country."

MR. I. VVOOLF (President of the Canterbury Manufacturers' Association): "Tlie Commission have taken 1 ■■*■■" the slow way round. They have followed the line of least resist - ance; The development of industries would absorb the unemployed quicker than any other method. If the motor body sbuilding trade were assisted by the Government prohibiting motorcars coming into the country with bodies on, 400 more men could be employed.

"The development of an industry for the distillation of petrol from brown coal would prevent the importation of the spirit, and more men could be employed at this industry. "These two items alone, if they were carried out, should solve the problem." MR. J. ROBINSON (Secretary N.Z. Alliance of Labor, Otago): "In these days of rapid and varied industrial development, unemployment insurance has become a necessity, and it de- ; mands a national remedy. The Un--1 employment Committee has recommended this remedy to the Government, and although the scheme will not be without opponents, it certainly must be received as something vastly preferable to the disorderly unregulated practice of indiscriminate / cadging, borrowing, and buying on 'tick,' by which unemployment relief is at present obtained. "Industry must always sustain the unemployed workers, and a systematic method of .applying that sustenance would be much more humane and no more costly to industry than the present live-if-you-can or starve-if-you-please contusion. "A scheme of unemployment insur•ance would be beneficial both to industry and to workers. Unemployed workers have no purchasing power at present, and Dunedin business houses are losing something like £3000 per week m consequence. Unemployment insurance would guarantee them a minimum purchasing power which would prove advantageous both to industry and to thehiselves." MR. L. ASH CROFT EDWARDS (president of the British Manufacturers Association of New Zealand): "Before anything permanent is done," said Mr.

Edwards, "it seems to me that there should be further investigation. We need to know more of the causes of unemploy ment so that we may know how to deal with them. For instance, it seems to me that a contributing cause undoubtedly has been unduly high protection of

some (not all) secondary industries which have not proved worth while. This protection has raised production costs, and as we know that our main income is from export of primary products increased production costs hav.e meant less return to the farmer. "The economic basis of unemployment should be studied and that information obtained ■at the -earliest possible moment m order that the Government, which will . be forced to do something- this winter, may have something to ' work upon. , ' '!The procedure so far . has been wrong-. We need to start at the beginning, so that we may understand the nature and scope of the problem."

DR. E. P. NEALE (secretary-Auck-land Chamber of Commerce): '"The report of the committee does not appear to me to be sufficiently constructive. It provides more for palliatives than for cures. I also consider that the length of time suggested (one week) as being necessary to elapse before an applicant becomes eligible for sustenance allowance could be made longer. Most people could carry on for at least a fortnight before requiring assistance." MR. E. H. POTTER (Mayor, Mount Eden): "I consider that unemployment insurance is not a solution of the problem. I think the only solution is to utilise land near the cities for .placing unemployed on small dairy farms, under supervision, assistance ' to be given at 'first and the land eventually to belong to ( each settler. Settlement would gradually spread outwards, and would benefit both Dominion and population. Finance would be obtainable by issuing debentures or bonds. If the Government was unable or unwilling to undertake the matter they should allow private, enterprise to try. France is a good example of the success of such a plan." Mr. E. H. MARRINER (Organiser of the Canterbury Manufacturers' Association): "I don't like the Unemploy-

ment Committee s r e commendations at all. lam very much against put■ting a tax on every worker, as that is ; only the thin edge to the* dole. I am disappointed that practically nothing was said about the development of secondary industries. "New Zealand is' at the turning

of the tides, and people are discussing the purchase of locally made goods more now than ever before. "If 2/- a week extra were spent by every person m the Dominion on goods made here it would produce another £7,500,000 which would be, circulated m the country. This amount would provide employment for over 13,000 extra hands. "Primary products m the past few years have risen largely, but the number of hands employed m producing these goods has decreased by over 7,500. How can we be expected to employ these and the extra young people who are leaving schools and also the population which is coming into the country if we do not open up new industries? "We are glad to see that the Christchurch Unemployment Committee have recommended that industries should be assisted by the Government m order to help solve the unemployment problem." MR. R CAMPBELL (president of the New Zealand Manufacturers' Association): "The functions of the pro!posed Unemployment . Board will undoubtedly be calculated to assist the alleviation of unemployment, but the Industries Development Board for which request is being made by manufacturers generally is also designed to function on the same lines. Much valuable work has been done by the committee and it wilt be of incalculable assistance when the position is being reviewed." REV. LESLIE B. NEALE (a prominent social worker m Christchurch) :

"Psychologica 1 1 y , as well as socially, the findings of the Commission are sound, and they should have an effect on the position. The scheme of buying New • Zealand goods whenever procurable, and British and Empire goods when they are not, should help m solving the pro-

blem of unemployment." MR. GEORGE HENNING (President N.Z. Wrestling Association): "As far as I can see, the real cause of unemployment is the vicious circle of higher wages — increased cost of living. As an employer of labor, I know that a great many men receive more than they are worth. It would be . better if wages were lowered; then cost of production would come down, as would retail costs and the general standard, while no worse m actuality, would not be so expensive. But I fear this is Utopian."