RELIEF WORKS

Southland Times, Issue 21854, 3 November 1932, Page 5

RELIEF WORKS

NUMBER 5 SCHEME REDUCED ALLOCATIONS A 10 PER CENT CUT (From Our Parliamentary Reporter.) Wellington, November 2. In view of the fact that it is common property that during the winter months the Unemployment Board has been spending much in excess of its income and it will have to cut down considerably on allocations during the summer if it is to balance its budget, it is rumoured strongly that the board will begin reducing its expenditure at the earliest possible moment, probably from the beginning of next week. It is hoped that by a reduction of allocations and a decrease in the numbers of unemployed because of seasonal work beginning, the board will be able to finish the year satisfactorily. During the winter months, from just before Mr Coates left for the Ottawa Conference, the board was spending an extra £16,000 weekly on country relief work and this extra amount was to have ceased at the end of September. It has, however, been carried on until the end of last month, but a halt has to be called now. In addition the board has been spending something like £90,000 weekly during the winter on all forms of relief and it is obvious that if it continued at that rate, it would be about £830,000 down on its estimated revenue, £3,850,000, for the year. An indication has already been given by the Minister of Employment, the Hon. A. Hamilton, to Mr F. Jones, the member for Dunedin South, in a letter in which he states that unless there is a very material reduction in the number of unemployed it will not be possible for the Unemployment Board to give relief workers throughout New Zealand the relief rate given during the winter months. The difficulties are such that it is going to be a case, not of granting further relief, but of reducing the all round relief at present given. The main expenditure by the board at present is on the Number 5 Scheme and according to the last financial statement, the average weekly amount being spent on the scheme was £67,000. It is recognized that it is imperative to get this figure down and accordingly allocations in cities and boroughs will have to be reduced. It was originally estimated that when the wage tax revenue was being considered that the total relief expenditure could be £69,000 a week only, but the Number five scheme alone is expending this amount. Other schemes have been costing over £20,000 weekly, but in those such as Scheme 4A where the cost is not so heavy on the board, it is likely no drastic reduction in the allocations will be made. It is stated that the board will make something like a 10 per cent, cut in the Number five scheme allocations for a start and will hope for a reduction in the numbers of unemployed through seasonal work being in full swing to bring about further reduction in expenditure to enable it to come through the year satisfactorily. It is understood the reduction will be in the days of relief and not the daily wage paid.