HIGH FINANCE

Sun (Auckland), Volume IV, Issue 1060, 26 August 1930, Page 7

HIGH FINANCE

ONEHUNGA’S PROPOSAL INFLATION BY SUBSIDY An easy way of raising money was disclosed last evening during a discussion by the Onehunga Borough Council, on the elasticity of Government subsidies for the relief of unemployment. The Mayor, Mr. E. Morton, announced that the local ex-Servicemen's street collection last week for the relief of unemployed ex-soldiers had realised £ SO, which, togother with the usual Government subsidy of £2 for £l, or £240 in all, would be handed to the council as wages for relief work performed by ex-soldiers. Cr. S. Vella thereupon asked if there was any reason why the council should not double the ex-Servicemen’s collection, which would then amount to £l6O and the Government subsidy be increased to £320, bringing the total amount to £4BU. The town clerk replied that the only way that could be done would be by ;. donation to the ex-Servicemen’s fund out of the unauthorised expenditure account. This rapid infiation of £SO to £ 480 was too much for Cr. W. C. Hill, who exclaimed: “You’d break the country in a week. We don’t want Australian conditions just yet.” Undismayed, Cr. Vella propounded an alternative scheme whereby £SO might be taken from the street allocation and with the addition of the subsidy would immediately swell to £240. Then, he said, the ex-Servicemen’s contribution of £240 would give the council £4BO for an outlay of only £BO. Cr. J. Pilkington took exception to this course on the ground that the diversion of £BO from the amount allocated for street improvements 1 would cut down the earnings of the council’s regular workmen. The Mayor reminded the council j that the Government subsidy would be ! paid on labour only and that considerable expense would be incurred by the ! council on material. On his sugges--1 tion the question was deferred for furi then consideration in committee.