UNEMPLOYED INSURANCE

Sun (Auckland), Volume III, Issue 759, 4 September 1929, Page 1

UNEMPLOYED INSURANCE

Aucklanders Approve Principle BUSINESS AND LABOUR VIEWS OPIXIOXS representative oi industry, commerce fn<l labour, and also from prominent public men, on the unemployment insurance scheme as outlined in the House of Representatives by the Hon. T. M. Wilford last evening, ■were obtained by The Sun this morning. The majority of those interviewed expressed approval of the principle.

Mr. J. Sutherland, secretary of the General Labourers’ Union, a section of the workers which suffers more than any other, endorses the principle of unemployment insurance, and advocates a scheme along the lines of the Labour Party’s Unemployed Workers’ Bill, which has been introduced into Parliament several times, but which has never received the approval of the Government. “We believe that the workers, the employers and the State should contribute equally to the unemployment insurance fund,” Mr. Sutherland said, “and if the money secured in this way is insufficient on the basis allowed, the State should shoulder the extra responsibility.” Mr. Sutherland added that, on a conservative basi?, there ■were 2,000 unemployed unskilled workers out of work in Auckland today. “When they are thrown out of work In their own trades,” he said, “they immediately become general labourers, and we have to shoulder the burden of their distress. “We believe that the introduction of a scheme of unemployment insurance, based upon the .lines as advocated in the Labour Party’s Bill, would go far toward solving the Dominion’s greatest social problem. Many of the charity societies now operating would not be required, while the physical stamina of some of the country’s best workers, which is now being undermined through malnutrition, would be vastly improved.”

Labour’s Bill, which was introduced to Parliament some time ago, provides for the establishment of an unemployment board, with powers to administer a special unemployment insurance fund comprising contributions from the employers and the workers, and supplemented by moneys appropriated from time to time by , Parliament. Remissions in cases of | hardship are allowed, and machinery ; for the enforcement of payments also j is provided. Special works for the reduction of unemployment would be created, and a special clause is included stipulating that, if a ivorker refuses without reasonable excuse to take the work offered him through the unemployment board, his payments under the scheme shall stop within seven days. SOUL-DESTROYING CHARITY “I consider that the proposals are on the right lines. This scheme will do away with a great deal of charity, which is a soul-destroying thing,” said Mr. S. J. Harbutt, vice-president of the Auckland Manufacturers’ Association, and a. biember of several local bodies. Under the insurance scheme employees -will contribute a substantial quota of the money. This being so, men out of employment will feel no hesitation, about accepting assistance. Partly it will be money that they themselves have set aside for a rainy day, and they will have a right to it. The tendency at the present j time was for people to live opto the last penny of their earnings, and he thought some system of compulsory saving was necessary. It was to be regretted, added Mr. Harbutt, that some similar scheme was not adopted in regard to the old age pension which, unfortunately, was regarded by many as a form of j charity. It was most unfortunate that the j English scheme had been termed a !

“dole.” as this was apt to create an j entirely wrong impression. “Quite ! possibly a few will try and loaf on ; it,” added Mr. Harbutf, “but this '' would soon be corrected.” SHOULD NOT BE NECESSARY Although the Auckland Chamber of i Commerce has not yet officially discussed a national insurance scheme, the opinions of individual members are known to Mr. A. G. Lunn, a past president, who says: “The view held by a large number ! of members is that this country is too young, and has too many opportunities for development, for it to be necessary to start a scheme of unemployment insurance. “If the suggestion made by the chamber can be adopted, that all public works should be carefully scheduled in advance, and works put into operation in times of depression, as far as possible, it would tend to relieve unemployment cause din such times of depression. “Further than that,” Mr. Lunn adds, “while there are some hundreds of thousands of acres of undeveloped land waiting to be put into a state of productivity, there can be no excuse for any Government not taking steps to utilise a great deal of unemployed energy.” The City Council employs a very large number of workers, and the proposed legislation was referred to the Mayor, Mr. G. Baildon. “Until I hear something definite about the scheme, I am not going to say anything about it,” declared the Mayor. He added that the recent Municipal ( % iference had approved the principle of unemployed insurance, and concrete proposals were forwarded for consideration by the Govenment. PROFIT BY EXPERIENCE Mr. J. A. C. Allum, chairman of the Transport Board, which has a pay roll of about 1.150 men, states his opinion as follows: “I approve of the principle, and if faithfully administered it should prevent a recurrence of the unhappy experience of the past two or three years. “From my own observations I have seen that unemployed insurance is capable of great abuse, but with the knowledge of what has occurred in England our Government should be able to devise machinery to render such abuse difficult.” Mr. Allum is, however, of opinion that it is of far greater importance that a Government policy should be evolved that would provide -work lor everyone, because every man wants a job rather than to have to be dependent on any scheme, however good in itself. There was much public work to be done, Mr. Allum continued, and if a few disgruntled persons in the community would devote their energies to things which really mattered, a great deal would be accomplished toward finding work for those in need of it. “Every encouragement should be given to New Zealand manufactures,” Mr. Allum said.. “The Transport Board has shown a lead in this regard by purchasing from Dominion firms wherever possible. This is the way to remove the necessity for an * mployed relief scheme.” [ Reference to unemployment insurance was made in the House of Representatives last evening by the Minister of Justice, the Hon. T. M. Wilford. Parliamentary news appears on Pages I 6 and 7.]