UNEMPLOYMENT FUND

Otago Daily Times, Issue 22269, 23 May 1934, Page 8

UNEMPLOYMENT FUND

PAST YEAR’S OPERATIONS AN ESTIMATED SURPLUS STATEMENT BY MINISTER (Peb United Pbess Association.) PALMERSTON N.. May 22. The year’s revenue from the Unemployment Fund with the amount brought forward from the previous year totalled £4,745,000, according to a statement made by the Minister of Employment (Mr A. Hamilton) when addressing the Luncheon Club to-day. Though there was a substantial cash surplus for the year, the Minister pointed out that it was not equal to the total commitments of the board.

Detailing the financial operations for the year ended March 31 last, the Minister stated that the estimated position was now sufficiently known to enable him to make a provisional statement which to all intents and purposes would be sufficiently accurate for general information. Statements had been made to the effect that the Unemployment Board would not publish its financial position. Statements had also been made that the board was holding a very large cash balance* and was endeavouring to build up a large reserve fund. Neither of these statements was correct. At the end of each financial year the board published its annual report, and in that report details were set out of the board’s receipts and payments. Furthermore a statement of the financial position as at September 30, 1933, was published in the press t>n October 17 last. In this statement it wag.shown that at the commencement of the financial year (April 1, 1933) there was in the fund an approximate surplus of £334,000. At the 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. This revenue, added to the £334,000 previously mentioned, gave the 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, amounted to £4,301,000, It would, therefore. he seen that, there wag at the end of the financial year an estimated surplus calculated, on the same basis as at the beginning of the year of ■ £444,000. “ These figures show,” said the Minister, “that out of a total expenditure of round about four and a-half millions for the financial year, the board ended the year in a better financial position to the extent of £110,000.” The Minister added 'that this amount was about 2i per cent, of the total revenue for the year. The result of the year’s operations would be satisfactory to those who provided the funds, and it should be evident to the relief workers that due regard had been given to their needs consistent with maintaining a balanced fund. Putting the matter in another way, if the board took into account all its commitments, including those to accrue and due for payment, after March 31 (which amounted to £627,000), it would be seen that the surplus in hand was not sufficient by an amount of £183,000. It was reasonable, however, to allow commitments that would fall due after March 31 to be at least partly balanced by the revenue that would accrue during the same period. Exception on several occasions had been taken to the amount of the cash balance in the fund. It" would be seen from the last annual report that the cash in the fund on March 31, 1933, totalled £424,426. At the end of the last financial year (March 31, 1934) the cash in the fund amounted to £621,518. This larger amount was accounted for mainly by the fact that there were greater future commitments at this latter period than at the former. Furthermore, it was always necessary to have a fairly substantial cash balance, became many of the outstanding accounts did not reach the Treasury until some considerable time after the date of payment. , THE UNEMPLOYMENT TAX MINISTER OPPOSED TO INCREASE. (Peb United Press Association.) PALMERSTON N., May 22. “As chairman of the Unemployment Board, I am not prepared to recommend the .Government to increase the tax,, despite the insistent demands made,’’".stated Mr Hamilton to-day. Care had been exercised, be said, that in solving the; problem a worse position was not created. The position of the taxpayers had to be watched as well as that of the unemployed. As the trustee of the fund, the board had to give as generously as possible while keeping the fund solvent. He Was as soft-hearted as most men, but the pull on the fund was all one way, and he often wondered why the taxpayers had not demonstrated for a reduction. The board had no desire *o withhold anything it could give in a fair way, and the State had a right to expect help. “I think we should appeal for the cooperation of all citizens," said Mr Hamilton. “In Palmerston North.some people are not standing up to their responsibilities, hut the board would accent no responsibility for the blame if public meetings were held and extravagant language used. The question was whether Palmerston North got its full share. Palmerston North has got its full share and running over, and those men have no right to demonstrate in the street, and you business men have no right to request more, though I don’t think you would. There’s no place in_ New Zealand that has got a better hearing relatively than Palmerston North. I was surprised myself when I went into the position.” the Minister concluded.