UNEMPLOYMENT

Southland Times, Issue 22157, 27 October 1933, Page 4

UNEMPLOYMENT

PALLIATIVE MEASURES SOMETHING MORE NEEDED. A general survey of New Zealand’s economic conditions prompts the New Zealand Employers’ Federation in its annual report to declare: “The steps taken by New Zealand to meet her economic difficulties so far have been akin to the action of a practically bankrupt person reducing his expenditure in order to bring it within the remnants of his income.” However, this caustic reference is followed by some constructive suggestions for permanent improvement. The federation made representations to the Government against the imposition of a 40-hour week upon all work subsidized by the Unemployment Board under the building subsidy scheme, and a section of its members also protested against the board’s wholesale purchase of commodities for direct distribution to relief workers, cutting out the usual channels of distribution. “We have no wish,” continues the report, “to do other than pay tribute to the members of the Unemployment Board for their untiring devotion to their task; they are doing a very difficult job, and there is little precedent to guide them. At the same time we think it necessary to point out that nothing is being done to assist in bringing about anything in the nature of a solution of the problems. To provide large numbers of men who are unable to find employment with some means of sustenance is an act which we must all approve. The public conscience would permit of no less being done, and it must _ also be recognized that such expenditure adds to the spending power of the people and so assists trade. “More than that is required, however, and if the Unemployment Board is fully occupied with its special function of providing and regulating sustenance payments we suggest that it might be made the special duty of some other body to study the problem from another angle, that of stimulating employment in productive industry. In the meantime this organization should set itself in uncompromising opposition to any violation of sound principles of economics in carrying out palliative measures.

Increased Consumption Needed.

“In connection with this problem of employment and unemployment certain facts are beginning to crystallize out from the magma of discussion. For instance, it is now recognized that in times of increasing production there must be an improvement of the general standard of living in order _to secure the consumption of the increased production. That is so obviously true that it needs no argument; but the world has experienced a widespread lowering of the standard of living at a time when the productivity of the world would have fully supported an improvement. The problem is therefore one of distribution rather than of production.” How will this problem be solved? The report quotes various solutions, including the shortening of the working life, leaving a greater proportion to .be spent in leisure. America is trying the experiment of shorter hours, and is regarded as the most suitable nation for the experiment as being the least dependent upon outside trade. “New Zealand,” it is suggested, “cannot experiment in any way which will increase industrial costs. We can only wait developments and be ready to come into line with other countries when decisions on this important question are reached.” The federation gives a lead regarding further active measures, to improve the Dominion’s position by making the following suggestions:— (1) That careful consideration be given to the provision in New Zealand of some legal authority for the formation of trade associations having for their object the elimination of wasteful tarde practices, with power to enforce compliance with decisions of the majority concerned in any case. It would be essential that the result of the operation of such associations should be to get down costs, and to pass the reduction on to the community. If the effect were to eliminate competition and so put up prices, it would be much better to allow the present unrestrained competition to continue.

Inter-Empire Trade. (2) That as every additional person placed on the land means an increase in the volume of our exports, and as the production from land at any rate for many years to come will increase more rapidly than our capacity to consume it, an expansion of our overseas markets is essential, and subject to the requirements of a revenue tariff, and to reasonable protection of such manufacturing industries as may be carried on successfully in New Zealand without undue protection, every effort should be made to further stimulate trade between this Dominion, Great Britain, and the other portions of the Empire. (3) That the adoption by the Government of a modified public works policy, under which work will be done which will later become assets for the country, and that such work be financed by internal loans, be given consideration.

Note: There is yet much reading required in New Zealand apart from main highways; there are many small towns with no drainage system and no water supply. Such works would be preferable to much that has recently been undertaken by local bodies .in the form of relief work. Productive work is most desirable. (4) That this federation set up a research committee to devote itself to the study of current problems, of which the most urgent one is how to convert our thousands of unemployed into useful productive citizens, taking their full part in the economic ' life of the Dominion.

The report adds that anyone who has seen anything of the relief works being carried on to-day in the vicinity of the cities must realize what a ghastly farce they are. There must be some means, it is suggested, by which these unfortunate men can (1) be trained and brought to a state of physical fitness; (2) taught how to perform some work of use to the community; (3) put to work in some useful capacity.