UNEMPLOYMENT POSITION

Otago Daily Times, Issue 23054, 3 December 1936, Page 10

UNEMPLOYMENT POSITION

A MARKED IMPROVEMENT THE MINISTER’S ANTICIPATION REDUCTION OF 3000 FOR MONTH (Per United Press Association) WELLINGTON, Dec. 2. “Unemployment is being reduced steadily,” said the Minister of Labour (Mr H. T. Armstrong) today, “ and I anticipate that the figures for the past month will show another reduction of about 3000 men There has been an increasing demand for labour following the expansion of trade and industrial activity throughout the Dominion

“ The Employment Promotion Fund will show a substantia! increase this year,” continued Mi Armstrong. “The department is now living within its revenue from the unemployment tax. When I took over the portfolio the expenditure was almost double the revenue. The outgoings totalled over £IOO.OOO a week whereas the income from unemployment taxation was only £65,000 weekly. To-day, although the benefits have been increased and given a wider application, the expenditure is well within the revenue. More people, of course, are now paying the unemployment tax of 8d in the £l, and unquestionably thousands of taxpayers are more able to pay it. The indications are, judging by the payment into the Unemployment Fund since the introduction of the higher wages and better times generally, that the wages bill of New Zealand will show an increase of not less than £ 12,000,000, excluding the increase in salaries and incomes This fact largely explains the marked improvement in general trade and industry. The increased spending power of the people is telling its own story of widespread benefit.

“As regards the expenditure on unemployment relief it is estimated that the various measures introduced by the Government to make more adequate provision for the unemployed will involve an additional annual expenditure of approximately £1,100,000 from the Employment Promotion Fund,” continued the Minister. “It must be pointed out in this connection, however, that a large number of men who were previously employed in camps at relief rates of pay have now been absorbed into full-time employment at standard rates of pay under the Public Works, Railways, and other State Departments. The cost of employing these men, which was previously met by the Employment Fund, is now met from other Government sources. Thus it will bo seen that an addition..! expenditure of £1,100,000 a year does not by any means represent the full amount of additional assistance provided by the Government for the unemployed.

“Although unemployment is decreasing the problem of maintaining the large number of men on sustenance remains,” Mr Armstrong said. “Itis a difficult one. One of the greatest difficulties is the fact that of the total now receiving increased sustenance rates approximately 8000 are unfit for ordinary work. Many of them are people who normally would be receiving assistance from hospital and charitable aid boards. Further, many of them really should be qualified for the invalid pension. In reality, of course, it does not matter who or which department meets the cost, because they must be considered and helped by the community, but it is questionable at the same time whether they should be a charge on thi Employment Fund. The problem is receiving the consideration of the Government.” The Minister, who left Wellington to-night for Waikato and Auckland, mentioned that the work of establishing a harvest labour camp at Morrinsville was in hand, and that he would inspect if during his visit. Hr also intended to visit several farms in the Waikato. Arrangements had been made for him to meet members of the New Zealand Farmers’ Union at Hamilton to discuss farm labour and general conditions.