UNEMPLOYMENT PROBLEM

Taranaki Daily News, 12 June 1930, Page 7

UNEMPLOYMENT PROBLEM

ECONOMY THE ONLY REMEDY SOME CAUSES DISCUSSED. ADDRESS BY MR. C. A. WILKINSON Unemployment, said Mr. Wilkinson at Kaponga on Tuesday night, was one oi the greatest problems confronting the New Zealand Government;. Though it was fairly general throughout the world, he pointed out that there were no unemployed in France or Canada. Great Britain, Hie United States, Germany and Australia seemed to be suffering most. . . In England, with 1,500,000 out of work, they did not borrow and add to the public debt, but New Zealand relied upon borrowed money to carry out public works and help unemployment. The United Parky definitely stated that it would end unemployment, and under pressure last session the Prime Minister undertook to employ every man out of a iob Many thousands were employed, but there were still 5259 without work, notwithstanding that there were over 12 000 men employed under the lublic Works Department in place of 8000 two years ago. . The Reform Governments rates oi nay for relief works were 9s a day for single men and 12s for married men. The United Government raised the rate to 14s a day all round. He. admitted 14s a day for married men with dependents was not too much, but for single men without dependents he thought a modification would have to be made. The latest figures relating to unemployed in the four large .centres showed men out of work with dependents as 1714, and without dependents a 5 .1563. These figures would be a fair average of the whole situation. They showed that the tax payer was being asked to provide out of taxes and by money borrowed for a large number of single men who had only themselves to provide for. This was not generally understood. The single men should only ask the State to° provide for them in a case of dire necessity. Surely there were jobs they could get? But with the 14s per day on relief works, would they look for a job? “I am not hard-hearted, said Mr. Wilkinson, “but if I had my way they would have to.” EFFECT OF NEW TAXATION. With_tho increased taxation predicted by the United Government, the situation would have to be considered, he said, . In many cases employers were not able to get labour. They could not compete against the Government. Only recently he had it on good authority that no local tenders were received for a bush-fellinor contract that was well advertised. Purely there was something wrong there? Farms all over the countryside could use more, labour The unemployment committee had recommended that a fund be created by personal levies and taxes, that income tax be increased Id in £1 and land-tax by 3-61 d in £l, that a levy of 1 per cent, be made on local body rates collected and that the general taxpayers nay Is 3d of the unemployment boards total annual expenditure. This meant that every man and woman in work must contribute to the fund directly and indirectly. The employer would pay his annual head tax with the rest; if he paid rates, one per cent, of his rate; it he was a land owner, 31-16 d on his land tax- if he paid income fax, Id in the £1 on his income tax. This was a fine variety of taxes; a memory specialist would be required. . It was estimated to raise by these taxes £700,000 per annum, plus the Is 3d Of the total sum expended, which would come from the Consolidated Fund. Presuming the board spent the whole £700,000, plus Is 3d £233,000, a total annual amount of £933,000, the fund, in his opinion would not then really pay its way. Last- year the Government paid for the relief of the unemployed the vast sum of £1,400,000, and still thousands were out of work. Under the proposal a man, wife and four children would receive £2 14s 6d ner week. These payments'were to be made without work of any kind. They thus got nearer to the Labour policy of pay and work or pay without work. Apparently there was an idea abroad that taxes eould be levied without end. In his opinion payments made m that way would multiply the trouble, and he ventured to say tli-e total amount to be collected would need to .be doubled or trebled within’a few years. APPROACHED IN WRONG WAY. The country semed to approach the matter in the wrong way. There was only a limited amount available for any kind of expenditure—wages not excepted. The basis of all payments should be for value received. Wages must be earned and value given for payment, received. The unemployment proposal was not a Government proposal; it. was a recommeridation to the Government from a. special committee set up-by the Reform. Government in October, 1928 —before the last election. The United Party, however, had definitely pledged itself to bring in legislation of this class during the coming session. “I have no royal cure for unemployment,” continued Mr. Wilkinson. “It can only ba done by a gradual improvement in the general situation.. Imposing taxes will not help the position, it will only aggravate the trouble. In Wellington the other day a Labour leader ur°ed that it would be no hardship for a man with £lOO.O • per annum to be made to pay £3OO per annum to relieve the unemployed. The result would be that this man would at once economise —probably by reducing his Labour bill. If he put two men out of work, either directly or indirectly, the position would be -as before —two men taken on and two men put off. This need not .aean i direct action by the man compelled to pay £3OO per annum. His economy, plan would probably effect his direct employees, his indirect employees, his draper, grocer, tailor, gardner, etc. Taxation can also be legalised robbery. What is wanted is a reduction in the cost of living, in the price of commodities, in the cost of Government and in the excessive taxation. There are too many on the public pay roll, and the number grows. Rigid economy must be practiced, whether we like it or not. Tljpre is only one real cure—economy.