Insurance for Relief From Unemployment

Sun (Auckland), Volume III, Issue 759, 4 September 1929, Page 6

Insurance for Relief From Unemployment

LEGISLATION PROMISED THE “DOLE” EXPLAINED (The SEX’S Parliamentary Reporter) PARLIAMENT BLDGS., Tuesday. Legislation providing for unemployment insurance is to be introduced next session. The Minister of Justice, the Hon. T. M. Wilford, indicated today that a Bill on the lines of the English Act would be placed before Parliament as soon as possible. Mr. Wilford said that the Government was in earnest in its efforts to solve the unemployment problem. He explained that the British system was often misunderstood. The payments under it were not charity, but insurance. Stating that he had regarded the dole as "an unholy thing,” Mr. Wilford said that when in England last year he had obtained some illuminating figures from the Ministry of Labour, which showed that instead of the assistance given being a dole, it was in actuality the people’s own insurance. He had been told that men went on the dole, and were satisfied to remain on the dole, but while that might be true in a small percentage of cases, it was far from being the general case. In New Zealand, the Minister believed there was not a man who would prefer to avail himself of the insurance in preference to receiving the ordinary wages of a worker. HOW MONEY IS OBTAINED The expenditure on unemployment insurance since the scheme was started in Britain was £407,000,000. Of that, employers contributed £142,000,000, employees £123,000,000, the Government £95,000,000, and the balance of £47,000,000 comprised an initiating loan and an amount paid earlier by the three parties to the fund. The point the Minister desired particularly to make was that it was an insurance fund, and not a fund for distributing charitable aid broadcast. In 1924 the contributions of employers and workers together equalled the whole sum paid in benefit, the State contribution in that year going toward the deficit in previous years. In 1935, 39 per cent, was contributed by the employers, 35 per cent, by workers, and 26 per cent, by the State. The distinctive features of the scheme sepa.rat.ing it from charitable aid were, firstly, its insurance nature; secondly, its essential connection with employment exchanges as distinct from the authorities charged with the relief of destitution.; and, thirdly, the character of the contribution made by the general community. HIGHER CONTRIBUTIONS “The contributions in New Zealand, I believe, could be higher than in England,” said the Minister. “The resultant benefit would accordingly be so much greater.” Mr. W. E. Parry (Auckland Central) : What about a short Bill this session, making the contributions start next year? The Minister replied that he had perused Mr. Parry’s Bill on the subject, but he could not agree with part of his proposals. The Minister added that he was submitting a Bill drawn on the lines of the English Act and similar Acts, and he would place it before the Cabinet as soon as possible. However, the law draftsman was exceedingly busy with other Government Bills at present, and it was -impossible for him to attend to the matter yet. “If the legislative programme of this Government is allowed to be placed on the Statute Book this year, I believe it will help to solve a great deal of the unemployment,” said the Minister. “That will be done largely by the Land Laws Amendment Bill, which members will very shortly see.”