NEW SCHEME

Southland Times, Issue 21715, 30 May 1932, Page 11

NEW SCHEME

j ASSISTING BUILDING INDUSTRY, t STATEMENT BY MINISTER. t The Rt. Hon. J. G. Coates, Minister ’ of Emplc ment, has released the following statements which sets out the 1 particulars of a scheme which has been , approved by the Unemployment Board for the assistance ol the building in- > dustry:— i The principle of this scheme is to I subsidize industry from the Unemployment Fund proportionately to the ad- . ditional number of men engaged from ; the unemployment register. This is on | the ground that it is better in the ultii mate to subsidize an employer to keep ■ a worker in industry than it is to pay • a relief wage to the worker after his ■ dismissal from industry. There is • plenty of evidence at the present time that a large number of building contracts are held in abeyance for various reasons: sometimes it is a matter ! of finance, but in many cases now it i is psychological. It is probable that the building industry has suffered more than any ’ other. The building industry in normal times, with the exception of the primary industry, employed more men tlv-n any other industry. To what extent this industry is suffering on account of the general depression may be gauged from the following figures:— In 1930, which was a normal year for building activities, the number of persons engaged in the industry was 11,312. On December 31, 1931, of the total registered unemployed 5536 were building tradesmen. If to this number is added allowance for the builders’ labourers who would be idle because the tradesmen were idle, the number would be over 7000. It is more than probable that the position has grown worse during this year. Officials in the industry allege ' .that 90 per cent, of the workers normally engaged in this industry are , at nresent not so engaged. i If building can be stimulated, not only the labour actually engaged on the building is affected, but employment is found for approximately the same number in indirect ways. It is not proposed to subsidize every building. The classes of buildings proposed to come within the scope of this scheme are set out below:— Class I.—Painting, renovating, repairing, modernizing, or making alterations or additions to private dwellings where the occupier is the owner thereof or where the occupier is purchasing 'the dwelling. Class 2.—Painting, renovating or maintenance repairs of dwellings other than those in Class 1. Class 3.—The building of dwellings for the bona fide owner-occupier. Class 4.—Painting or maintenance repairs of business premises or commercial buildings. Class s.—Building, rebuilding, painting or renovating public or semi-public buddings. _ Class 6.—Building, making alterations or additions to, and the painting, renovating or repairing of dairy factories, freezing works, storehouses for primary produce, or any new factories which would not be directly in competition with existing factories in New Zealand.

The following conditions governing the payment of the subsidy will apply; (1) The building must be in one of the classes listed, and except in the case of these in Class 1, must first have been approved by the Minister of Employment, acting on the recommendation of the Unemployment Board. (2) The amount of subsidy paid will be 33 1-3 per cent, of the wages received, provided that it shall not exceed 22/6 for any person in any one week. (3) Construction work must commence between the dates July 1, 1932, and December 1, 1932. This will not prevent the subsidy being paid after the latter date on labour which was engaged and actually started between the dates mentioned. Except that in one case of workers engaged under this scheme on work which will last over 12 months, in which case, commencing on July 1, 1933, the maximum subsidy will be reduced to 12/6 per week. (4) The labour on wl-ich a subsidy is to be claimed must be engaged through the nearest Labour Bureau. Note; This does not mean that any person sent by the labour officer must be en-'"-ged. ~ . receipt of a request for carpenters, painters or other workers, the officer in charge will advise a number of the tradesmen required where the vacancies are, and from tl.jsa sent the employer will select. In the event of the employer knowing suitable registered men, he may nom- ! ate same to the officer in charge. (5) The normal working week on works engaging subsidized labour shall be the same as laid down in the current agreement or award covering this industry. The board does not feel called upon to stipulate a shortening of hours as a general practice, but suggests that in view of the unlikelihood of the full complement of builders being re-engaged in industry, that just so long, and whenever the- number of registered unemployed building tradesmen exceeds 20 per cent, of the total, the weekly hours be reduced to 40, with the same rate of pay per hour applying. (6) New Zealand materials and products must be used wherever possible. (7) The board will reserve the right to suspend the subsidy on any work when it is satisfied that a regular employee has been dismissed for the purpose of taking on subsidized labour.