The Daily News SATURDAY, MARCH 26. 1932. WHERE ARE WE DRIFTING?

Taranaki Daily News, 26 March 1932, Page 4

The Daily News SATURDAY, MARCH 26. 1932. WHERE ARE WE DRIFTING?

The question is one which very many people will have asked themselves since they have learned that the Minister in charge of Unemployment (Mr. J. G. Coates) proposes to ask every wage-earner and everyone else who has any income to contribute one-twentieth of his receipts to the funds for the relief of'unemployment. It is a staggering tax, not less serious for jthose enjoying comparatively large incomes—less the many other demands already made by the State —than for the man whose earnings are at the bottom of the wages scale. The adoption of Mr. Coates’ proposal assuredly will mean a great sacrifice on the part of the average man receiving, say, £3 10s a week, for if he is a family man who tries to utilise his resources to the best advantage a weekly deduction of 3s 6d will make a very considerable difference to his budget. Where\ every shilling of an already curtailed income counts a 20 per cent, deduction may even become a hardship, and in no case can it be regarded as anything less than’ a penal burden. What justification has the Minister shown for this extreme demand? Very little indeed, in spite of the length of his statement on the subject. When the first Unemployment Act was passed the Government spoke hopefully of solving the unemployment problem. After reading all Mr. Coates has said one could almost suppose that he and his colleagues have thrown up the sponge. He has certain plans, and quite good ones in spite of their necessary- slowness of action, for the establishment of a proportion of the unemployed in productive occupation, but apart from that his attitude seems pretty hopeless. He simply says in effect that the number of unemployed is bound to increase, ■ the Government has no funds with which it can help them, and every individual who has an income must therefore make a direct contribution to those who have nothing. It is that attitude which prompts the question, where are we drifting ? Every increase in the number of the unemployed means a decrease in the number of those able, to provide for the unemployed. Every additional demand of the tax-gatherer, whether for an unemployment levy or for any other form of tax, curtails the activities of those members of the community who otherwise could make the best useof the available resources. What is to be the end of it? If we go on as we are going the time will come when the employed will collapse under the burden put upon them by the unemployed, for each fresh demand is weakening them. Better times, of course, would make all the -difference, but is it wise to gamble on the future? That is a question to which Mr. Coates should address himself while his Unemployment Amendment Bill is before Parliament. It would be well for him to review the operation of the unemployment legislation with the object of showing what its effects have been, and he certainly should be able to forecast in more definite terms than he has yet attempted the nature of the consequences to be expected from his latest proposals. He is asking the people of New Zealand to make substantial sacrifices and to entrust a very large sum of money to his keeping. They have a right to know exactly what he proposes to Ro with it. At present the people are providing funds for unemployment at the rate of about £2,500,000 a year, one-half of which comes through direct levy and the rest through the Consolidated Fund. It is proposed to relieve the Treasury of its share and also to relieve the hospital boards of the cost of assistance for ablebodied unemployed, but that is. not likely ,to mean any reduction in general taxation. For the purposes of the unemployment fund all income is to contribute Is instead of 3d out of every pound. Incomes are ’declining, and it may therefore be difficult for the Minister to estimate closely the proceeds of the emergency tax, but the amount should not be less than £3,000,000, ‘ and probably will be greater. The-annual levy or poll tax of £1 apparently is to be continued, and with the addition of its proceeds the income of the unemployment fund will be in the neighbourhood of £4,000,000. If all that money is to be spent the Dominion’s outlay on unemployment will b,e raised at one jump by considerably more than £1,000,000, even if allowance is made for the cost of transferring responsibility for certain relief from the hospital boards. Before it consents to the passage of the Unemployment. Bill Parliament should ask the Minister to supply estimates of revenue and expenditure, especially the latter, for members are aware that when previously in office as Minister of Public Works and of Railways Mr. Coates was a particularly free spender. It is the plain duty of the House of Representatives to exercise adequate control in fhis_matter; to refuse to delegate its authority until it has had a satisfactory glimpse of the future. So far as policy is concerned the electors have given the Government an open mandate, but that does not include a blank cheque on their private resources. Even at the cost of hardship, however, they [will provide the. funds sought by

Mr. Coates if he can give any indication that his policy is likely in the long run to lessen the need for sacrifice.