RELIEF OF UNEMPLOYMENT

Otago Daily Times, Issue 21602, 24 March 1932, Page 9

RELIEF OF UNEMPLOYMENT

THE GOVERNMENT’S PROPOSALS

INCREASE IN WAGES TAX TO ONiE SHILLING PROVISION OF WORK IN COUNTRY RURAL ALLOTMENTS FOR MARRIED MEN - ' . ' ’ • i Highly important proposals for the relief of unemployment were announced by the Minister in Charge of Unemployment (Mr J. G. Coates) in the House of Representatives yesterday afternoon. Theseinclude:—f An increasedn the wages tax to Is in the pound. The establishment of a rural allotments scheme for married men. Extension of the principle of placing men on existing, farms and moving single men from cities to highway construction and other camps. Provision for accommodation for workers under scheme 4a and an extension of scheme 5. Rural areas development, land drainage, tidal fiat reclamation, and reclamation of virgin land schemes. Metalling backblock roads. Assistance to gold prospectors. Transference from hospital boards to the Unemployment Board of responsibility for relief of distress arising out of unemployment. • • : Under the proposed rural allotments plan holdings of from five to ten acres will be made available. Accommodation will be supplied, and the occupant will be able to work part time for neighbouring farmers. In the meantime he may receive portion , of the present relief allowance. Under the; new financial arrangements the Consolidated Fund'subsidy to unemployment will cease. A Bill giving legislative effect to the proposals was introduced yesterday afternoon. As the subsidy provided in the past by the Consolidated Fund is to be abolished under the new proposals, unemployment relief will in future be provided for exclusively out of special taxation.

FAR-REACHING PROPOSALS

as compared with £3 17s lOd a year ago, many workings which were not worth while have now become so. Most of the men out prospecting and fossicking are now able to earn a living without assistance, and some have done quite well. Some hundreds of these men in necessitous circumstances have been given a start from unemployment funds, and the unemployment fund will be recouped to the extent of 10 per cent, of all gold. SCHEME 5 AND 4a

EXTENSION OF No. 5 SCHEME

HELP FOR GOLD PROSPECTORS

HOSPITAL BOARDS RELIEVED .OF BURDEN (Fboji Oub Parliamentary Reporter.) WELLINGTON, March 23. The full text of the Minister's statement is as follows:For the information' of members and the country, I desire to review the position respecting Unemployment, and to outline some further courses of action calculated to provide opportunity for those out of employment. In so doing, I recognise two basic considerations: It is necessary to keep in mind the effect of the burdens of taxation, for it is obvious that the more the public is taxed the greater will be the decrease in spending ability, which brings its own reactions in industry. My endeavour, therefore, is to keep a reasonable and equitable balance, and thereby avoid adding to the troubles with which we are dealing. On the other hand, it is my opinion we must not merely say that reasonable relief shall be granted to those in distress, but must take every step within our power , to ensure that no citizen who is prepared to work shall go short of the minimum necessities to keep together the body and soul of himself and his dependents. In reviewing the past few months, we are able to see some cause for satisfaction. The rate of increase in the number of registered unemployed has at least been arrested in the meantime. The total stood at 51,408 on October 5. It has been reduced by 7000, and has now been fairly constant at about 45,000 for several weeks. The figure on March 14 was 44,399. At this period a year ago the steeply-rising figures of unemployment showed no slackening whatever. Registrations, ■ in fact, increased from 0000 in October to 31,000 in March of last year. . The total placements of men in subsidised employment on farms are 17,000. This represents some real progress in the moving of men over the fence. Every care has been taken to see that these men have not displaced regular employees. The number actually on farms as additional labour to-day is 7000. In October last the figure was 2000. This effort to assist at once the unemployed and the man on the land appeals to me as thoroughly sound—for it is upon the farmer and the unemployed that the burden of this depression has fallen most heavily. Our intention, therefore, is to extend to the utmost the means ot placin'' men on existing io some further steps proposed in this direction I shall presently refer. About 1000 single men have been moved from the congested city areas into camps for highway construction, These camps were in the nature of an experiment on the part of the Main Highways Board and the Unemployment Board, and they arc now ad judged satisfactory. The principle will be further extended, but with this difference —that the purpose will not be confined to road work. A start has already been made in establishing camps for married men to enable them to engage in more useful work than they could he offered in the cities. ASSISTANCE FOR PROSPECTORS The marked revival in gold prospecting is due. in part, to, the assistance given by the Unemployment Board, cooperating with the. Mines Department. With gold at over £0 per ounce,

Much of scheme 5 work has been of limited value, but special investigation has shown that under scheme 5 some 10,000 imen are now engaged in work of a definitely productive nature, such as land drainage and improvement. The Unemployment Board has managed to live within its income. This has been achieved only by rigid economy, necessary owing to the limited funds at its disposal; but there are many deserving citizens whom the board has been unable to assist at all.

Scheme 4a will continue, and as many men as farmers are prepared to take will be made available under this scheme, if satisfactory arrangements can be entered into with the farmers. When a farmer has no accommodation available for a man, and cannot provide it, arrangements will be made to provide a hut or the materials to erect one. MARRIED MEN IN CITIES

Although the total of 'registered unemployed has fallen in the past five months, there is one group in which numbers have not fallen, and that is the married men in cities. While the total of single men registered as unemployed in the four main cities has fallen from 9000 to 7000, a drop of 23 per cent., the number of unemployed married men. in the cities was 11,500 in October, and is still 11,200 in March, a negligible drop of 2 per cent. RURAL ALLOTMENTS

This brings me to refer to the first measure, which we propose for further relief of married men. We turn our attention to the land, and propose a scheme of rural ■allotments. Under this new plan, sections of from five to ten acres -will be acquired by any form of tenure which is most suitable to the case, and a cottage of Public Works type will be erected thereon. The tllotments will be distributed throughout the rural districts. The occupant of a sec 1 tion will be able to work some of the time for himself on his own place in providing his own sustenance, and part of the time for a nearby farmer, or anyone in the locality who can employ him. It is recognised that relief workers who are thus moved out will not immediately be able to earn an independent livelihood. Some part of the present relief allowance will, therefore, have to be continued.

Again there are many cases where a landowner could make available to a worker portion of his land, and the occupant could work in the same way—that is to say, part of the time on his allotment, and part of the time for farmers in the district. APPEAL TO FARMERS The Government now appeals to all landowners and farmers to help in this time of stress. If they will respond, and I am sure they will, an impetus will he given to production; men will be found employment; the farmers will have additional labour; and at least some of the men, we hope, will later become permanent settlers. As typical of what can be done, and something that has been done, we can picture a. farmer agreeing to take a relief worker and his fa;nily on to his place, with a cottage provided, the farmer setting aside a few acres, and providing a cow or two pigs, and such farm products as lie can, while the relief worker agrees to work on stated terms on the farm.

This matter of placing the unemployed on rural allotments has been carefully considered. We are well aware of its difficulties, and of its limitations. It is not wholly a land settlement scheme, but rather an emergency measure to move some thousands of persons into an environment with opportunities. For the individual, at the very least it will provide shelter until the storm has passed over, and is certainly preferable to keeping families in congested areas, with little hope or opportunity. The Government has agreed to recommend Parliament to provide a fund in the nature of capital expenditure to help to finance this scheme. Transport is amongst the incidental problems raised by a scheme of this character. The Railways Board has been consulted, and I am pleased to say that it has agreed to cut charges and to co-operate in a helpful way with this plan, to which, I may say, I attach the greatest importance. I shall deal with this aspect more fully when I speak on the Bill. OTHER MEASURES Meanwhile, 1 refer to some other work that is in hand. Land drainage offers a very valuable addition to the works to be undertaken. There are many thousands of acres of good land which only require draining, the carrying capacity being restricted owing to its waterlogged condition. Drainage will enable this land to be made completely productive and provide for greatly increased production, and ultimately for closer settlement.

Tidal flat reclamation also offers scope for considerable development. There may be legal difficulties in this matter, but these will be overcome by legislation. Some works are in hand, and when completed will be immediately made available to those requiring small farms.

Reclamation of virgin land.—Proposals are being finalised embracing the development of Crown lands by suitable men.

Proposals for land settlement not directly undertaken by the Government will be sympathetically considered and encouraged. Road work, particularly the metalling of backblock roads, will enable us to give employment to a considerable number of men in providing the all-weather access which settlers so badly need. The considerable increase in the value of gold will enable many areas of goldbearing country which could not be worked at a profit at the old price of gold to be now worked, and give a reasonable return. After consultation with the Minister of Mines I am pleased to say that provision is being made for the services of supervisors additional to those already available.. I look to a great expansion in this connection.

RELIEF ADMINISTRATION CONTINUOUS COUNTRY WORK. Apart from these ventures along remedial lines, some further changes are being made in connection with relief administration. Scheme 5 has in the past been used almost exclusively for the employment. of men in the towns and cities. A commencement has already been made to apply this scheme to country work, with the difference that the work is continuous, and there are no stand-down periods. It is essential that work in the country should be carried on continuously. The policy is to direct labour into rural districts.

It has been the practice for hospital boards to provide sustenance for registered unemployed, particularly in standdown periods. Waste is caused by duplication and overlapping when the same able-bodied unemployed are assisted from public funds by the Unemployment Board and the hospital boards, and possibly by other social organisations. It is therefore proposed to remove froin hospital boards the necessity for assisting. This means that any relief it may be possible to give to registered unemployed, apart from wages, will be given from the unemployment fund, while the hospital boards will be responsible for relief to those whose distress is due to causes other than unemployment. Until such time as the payment for relief is brought under one control it is impossible to say how much unemployment is costing the country. It will be seen from what I have said that the hospital boards will be relieved of a considerable drain on their resources, and as a result of the proposed change in method and organisation the hospital and charitable aid boards should be able to reduce their demands for levies on local bodies. THE UNEMPLOYMENT FUND AN INCREASE IMPERATIVE. TAX OE Is IN THE £ ON WAGES. An increase in the income of the unemployment fund is imperative. The present incomfi is £2,500,000 a year, and outgoings, at the rate of about £50,000 weekly, amount also to £2,500,000 a year. This cost cannot be much reduced as long as the unemployed number some 50,000 (as they do when men in subsidised employment on farms and gold prospecting are included). Then ,we are faced with the need of taking over from the hospital boards the responsibility of providing for able-bodied unemployed. We must move men from the cities, where little work is offering, to country districts. They will be more usefully employed, and they will be giving some definite return. But the initial cost will be higher than it is now, and, apart from any jthcr increase, a considerable proportion of the men who have been employed on public works and paid out of capital funds must come on to the unemployment fund. It must be clear to all that the Consolidated Fund will not be able to contribute anything in the ensuing year by way of subsidy to the unemployment fund, nor is it anticipated that the amount- payable this year by way of levy and special tax on wages and income will equal what was received during the present financial year from the same income avenues. The special tax for unemployment stands outside of ordinary taxation, and outside of State revenue. It is in the nature of insurance, or a pool as amongst wage and salary earners •who are in employment, and those who are unemployed. From this viewpoint, and so long as the available funds are economically administered, 1 am sure that those who are in employment and in receipt of income (even a falling one) will not grudge the increase shown to be necessary. The tax will now be extended to include women with individual incomes below £250 a year from sources other than salary or wages. At present they are exempt, while women with the same, or smaller, incomes from wages and salaries are subject to the tax. This anomaly will be removed. It is necessary to ask Parliament to increase the wages unemployment tax to Is in the £.

AMENDING LEGISLATION

PROVISION OF SUSTENANCE WORK ON THE LAND. (From Odr Parliamentary Reporter.) WELLINGTON, March 23. The Unemployment Amendment Bill is divided into two parts. The first deals with the settlement of unemployed workers on cultivable lands, and the second with miscellaneous amendments of former Acts. The purpose of the first part is to make provision for the settlement of the unemployed and their families on areas of cultivable lands and to alleviate distress resulting from unemployment by affording an opportunity by this means to provide in part for their own sustenance. If the persons so assisted are unable to provide adequate sustenance for themselves and their families they may receive sustenance allowances out of the unemployment fund in accordance with section 20 of the Unemployment Act, 1930, or may be provided with necessities in accordance with section 15 of the amending Bill. Section 20 of the Unemployment Act authorises the payment of sustenance allowances, out of the unemployment fund, but it has so far not been put into operation in accordance with the Government’s policy of providing relief work rather than the payment of money without an alternative. The proposal made by the Bill is that money may be spent from the unemployment fund for the purchase of food, clothing, or other necessities for the benefit of persons qualified to receive a sustenance allowance. For the benefit of persons employed on relief works, or for the benefit of the families or other dependents, the board may purchase supplies of food, clothing, or other necessities, and arrange for their distribution, or it may arrange for the issue to qualified persons of dockets which will be exchangeable for such necessities. In accordance with prescribed conditions these dockets will be redeemed by the board with a payment out of the unemployment fund.

Dealing with the question of the acquisition of suitable lands for settlement by the unemployed the Bill authorises the Minister of Unemployment, acting on the recommendation of the board, to enter into agreements with the owners or occupiers for the occupation and cultivation of areas by the unemployed. This agreement may provide for the occupation of land by any persons approved by the Unemployment Board either with or without a formal license to occupy, and for the erection of any dwellings or other improvements. The lands to which this section refers include private lands, areas vested in or administered by the Crown or a department of the State, or by local bodies. Where in any case the board is unable to enter into an agreement for the occupation of any suitable land the land may be acquired by the Crown under the Public Works Act or the Lands for Settlement Act. All moneys payable in respect of the acquisition of land in this manner shall be paid out of the unemployment capital account. In order to make the lands available for occupation the Minister, on the recommendation of the board, may order the erection of buildings and the provision of water, light, drainage and other necessities. Any buildings or other improvements may be at any time removed without liability for the payment of compensation to the owner of the land or any other person. All moneys required for the purposes of this section up to £500,000 may, without further appropriation, be paid out of the public account to the credit of a separate account to be called the Unemployment Capital Account, and any additional expenditure must be appropriated by Parliament. '■The Bill deals with the new basis of unemployment finance indicated in the Minister’s statement. The clause in the principal Act providing for a £ for £ subsidy from the Consolidated Fund on the board’s expenditure is repealed. The increase in the emergency unemployment charge from one penny in every 6s 8d to threepence in every 5s will operate from May 1, 1932. It is provided that by Order-in-Council the rate of the emergency charge may be reduced if the proceeds are found to be more than sufficient to meet the reasonable requirements of the Unemployment Fund. The emergency charge was limited by last year’s legislation to July 31, 1932, but it is now proposed to extend the liability for the tax indefinitely. The emergency charge imposed in respect of income other than salary or wages derived for the year ended March 31 shall be due and payable by equal instalments on the first day of May, August, November and February. Section 15 of last year’s Act defining the liability of women for the payment of the emergency charge is repealed. That section made women with incomes of £250 a year and over derived from sources other than wages or salary liable to the charge. It is now proposed to include women with such incomes exceeding £2O. The board may on the ground of hardship exempt any person from liability to pay the emergency unemployment charge.