UNEMPLOYMENT

Otago Daily Times, Issue 21359, 12 June 1931, Page 8

UNEMPLOYMENT

AN ACUTE SITUATION BOARD’S FUNDS EXHAUSTED . SUSPENSION OF No. 5 SCHEME APPEAL TO PUBLIC CHARITY [(Urgent Memorandum, to All Newspapers.) WELLINGTON, June 11. The following statement lias been issued to-day by the Prime Minister (Mr G. W. Forbes): — ’ “ A special meeting of Cabinet was called,'yesterday. to deal with a resolution submitted by the Unemployment Board setting out that at the present rate of expenditure the unemployment fund would be exhausted by the end of next week, and that the Unemploy- ' ment Board was faced with no other alternative than to advise the Minister of Finance that unless and until further funds could be made available the operation of Scheme No. 5 must be suspended. , Cabinet, after xcareful consideration of the resolution and the position of ,the Unemployment Fund, decided that the operation, of the Unemployment Board’s Scheme No. 5 should be suspended on June 2t), 1931, and the following statement has been issued in connection

therewith:—• “ The funds of the Unemployment Board are provided under the Unemployment Act of last year. They con/eist solely of the unemployment levy payments, with a subsidy of £ for £ of expenditure from the Consolidated Fund. There was no indication at the time the legislation’ was passed that the fund would be subjected to such enormous demands as have; eventuated.

Consequently it has proved quite inade-

quate to provide for each of the 13 weeks * the quarter even the small amount of 'relief that is at present being granted. The funds of the board have been depleted to the point where it is impossible ' to carry on' with Scheme No. 5 beyond June 20, as the Minister of Finance has no authority to provide further moneys for the fund without the sanction of Parliament. “The maximum income of the board, inclusive of subsidy from the Consolidated Fund, is £24,000 per The outgoings, even on the closelyrationed basis followed, are { approximately £40,000-per week., A temporary suspension of Scheme No. 5 was made on April 11, when the basis of rationing was reduced and the qualifications for relief revised so that only those genuine unemployed wage-earners with little or no resources were declared eligible for relief; but, notwithstanding the large numbers eliminated by this revision and reclassification, the ever-increasing re--1 gistrations caused by employers all over the Dominion discharging hands, and by those who had previously been endeavouring to carry on without obtaining relief being ultimately forced to apply for work,, have made. the total, eligible for relief eyen greater than before the suspension. Until, however, this revisiob and reclassification was . complete, and a few ! r weeks’ experience of the actual expenditure, on resumption of Scheme No. 5 was obtained, it was impossible to ascertain Just what the actual outgoings were. Now that the figures have become available, it is realised that, with an approximate expenditure of per week, a stoppage is inevitable until further- funds are available. “The proceeds of the levy due on' June 1 will be required to meet commitments to the date of suspension, and until Parliament has met and decided what is to be done to meet the position, Cabinet has decided .that there is no option but to suspend operations. No further commitments will be entered into under any other of the board’d schemes, although existing commitments will be met.

, “ The Government earnestly appeals i to all local bodies, Ipcal unemployment committees, churches, and all charitable organisations, to use their utinost endeavour so to organise the ; resources (private or otherwise) of their districts as to ensure, at least, that n p one 'Will go without food or clothing or shelter. It is obvious that a united effort is necessary to\ take care of cases of distress, and to cope with the situation until Parliament is able to deal with the position.”

DISTRESS RELIEF FUND. We have received the following subscriptions in response to the Mayor’s appeal:— Mrs M. M. Fergus .. .. .. £25 0 0 W. W. Menzies 5 0 0 F. A. Cooke .. .... . • 500 Mr and Mrs W. G. Coburn .. 22 0 Miss L. J. Kelsey 22 0 E. M. M 110 D. S. S 10 0 “ Sympathiser ” 10 0 “ A Friend ”.. .. .. .. 1 0 0 C. A. .. .... .. .. 010 0 WOMEN AND CHILDREN. THE MAYORESS’S FUND. The following additional donations have been received for the Mayoress’s fund for unemployed women and children: —

MEAT FOR DISTRIBUTION ISSUE TO HOSPITAL BOARDS. (Special to Daily Times.) AUCKLAND, June 11. A ration of meat is being added to Ihe orders being issued this week by the Auckland Hospital and Charitable Aid Board to applicants for outdoor relief. This has been made possible by the purchase some time ago by the Government

of about 20,500 carcasses of mutton at prices considerably below those ruling today. Most of this meat was bought in the Hawke’s Bay district almost three months ago when, owing to the shortage of feed and the depressed state of the market, prices wore phenomenally low. The moat was held in cool store, and now that the winter has arrived the Government has advised the various hospital boards that it will bo available to supplement the food orders which the boards customarily issue. It is understood that the Auckland Board will receive upwards of 6000 carcasses for distribution. This will be received in parcels of about 500 carcasses as required.

The secretary of the Otago Hospital Board stated last night that, so far, no intimation has been received by him regarding the Government’s offer.

Previously acknowledged .. £115 0 0 F. V. A. T 5 0 0 R. H .. . 0 10 0 “A Working Girl” .. . 0 10 0 0 0 Mrs Sutherland .. .. 1 0 0 M. N. H 0 0 Mrs J. 'M. Ritchie .. , .. 10 0 0 “A Friend” . 0 0 £139 0 0