The Daily News. FRIDAY, MAY 19, 1928. UNEMPLOYMENT PROBLEM.

Taranaki Daily News, 18 May 1928, Page 6

The Daily News. FRIDAY, MAY 19, 1928. UNEMPLOYMENT PROBLEM.

The report of the special subcommittee appointed by the National Industrial Conference to inquire into the unemployment problem and as to the effect of the industrial laws now in existence, gives evidence of much careful examination of the problems concerning the present conditions of both employers and workers. The fact that the recommendations made by this committee were unanimous, except upon one detail of no vital importance, indicates that, in the main, the members took a commendable and conciliatory view of the task on which they have been engaged for nearly a month, though that feature must not be taken as a reason why all the recommendations should be accepted without question. Apparently the committee began their work at the right end, by going down to bed-rock and building on a solid foundation. While statistics are helpful, they can be used, as will be seen, to give colour to unsound arguments. The main duty of the committee was evidently to endeavour to treat the unemployment problem from a commonsense point of view. They recognised its acuteness and that Government help by means of grants out of the Consolidated Fund must be made oil a scale sufficient to cope with the situation. It is not doles that are wanted, but funds to provide special employment whereon different grades if workers can earn wages according to their ability, the claims of married men with dependents being the first consideration, and it being understood that rates of pay should be those which are commonly known as relief rates. It is only right that this matter should be treated as a national one, and be met by the Treasury. That being the case, it follows that the relief works should be approved and carried out by Government officials, or other officials sanctioned by the Government. It may be considered that this is the immediate problem requiring attention, but the committee rightly took a general prospect of some of the many industrial difficulties which face the Dominion at the present time, together with the causes of unemployment and remedies therefor, but they decided to refer these questions to the Government Statistician’s department for investigation. They recommend careful investigation to be made as to the most suitable form of productive work under State control, which would absorb from time to time labour temporarily not required in industry. It may probably be thought that a more useful inquiry would be how can the costs of production be most effectively reduced so that increased output be obtained and greater efficiency gained. In this connection reference may fittingly be made to the recommendation for compulsory insurance.. Obviously the present is not the right time to discuss compulsory insurance. Burdened as they are with heavy taxation, high local rates end by no means light tariffs, the employers of the Dominion are also dominated by the Arbitration Court. It would seem that this tribunal has achieved something. It has conceived a so-called cost of living basis of wages, aud brought forth a vicious circle which has proved an evil of considerable dimensions. It would also seem utterly unjust—if not impossible —to add the cost of compulsory insurance to the other burdens which the employers now have to bear. There should, before this question can rightly come within the sphere of practical politics, be a reconsideration of the whole system of wages fixation and the settlement of industrial disputes by some tribunals other than those as at present constituted. Competition is so keen that no legalised system of wage fixation can logically be governed by any

other factors than those of cost of production and the prices obtainable for the goods. When normal employment is again general it will be time to give many such questions practical consideration, including some of the reeonimendaticns made by the committee. Tlie “asl of the moment is to deal with the immediate problem of abnormal unemployment in the only feasible system as pointed out by the committee. There will be ample time for the committees to examine and report on other problems demand ing solution.