The Daily News MONDAY, SEPTEMBER 5, 1932. A WELCOME SUGGESTION.

Taranaki Daily News, 5 September 1932, Page 6

The Daily News

MONDAY, SEPTEMBER 5, 1932. A WELCOME SUGGESTION.

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Almost a month ago the Right Hon. G. W. Forbes made his first really optimistic statement since he took office as Prime Minister. It was to the effect that the Government hoped to go through the coming session of Parliament without imposing any more taxation,

and to a country already carrying an extremely heavy burden of taxation by reason of both State and local body demands it was most pleasing news. It was qualified, however, by the Prime Minister’s reference to the special taxa-

tion imposed for the relief of unemployment. Questioned on. this matter, he replied that he was not in a position to say at the moment what would have to be done in the way of readjustment of the special tax. “Any increase would be avoided if possible,” the report ran, “but the state of the unemployment funds would have to be gone into before anything was said.” The apparent hesitancy of the Prime Minister’s utterance was by no means encouraging; indeed, it caused some little anxiety among those who are finding the shilling in the pound a very severe drain upon their slender resources. Mr. Forbes no doubt recognised this and has been looking into the matter in the hope of being able to make a more favourable pronouncement. The result of his inquiries seems to have been very satisfactory, for he has now stated that he hopes to make a reduction in the unemployment taxation. He could not have offered the public a more welcome suggestion. Both the wage-earners and those who are assessed in respect of other income accepted without protest the original tax and levy and the later increase, unexpectedly great though it was, because they realised the extreme severity of the conditions the country had to face and the urgent need of the many who were out of work. But of late a certain feeling of uneasiness has been abroad with respect to the policy of unemployment relief. Even the deputy-chairman of the Unemployment Board has frankly admitted that the present policy is-. beset with dangers, and he has also shown that the gravest of these is that relief work may be made too attractive. The widespread suspicion that people who might reasonably be expected to employ workers under normal con-, ditions have been taking advantage of the relief schemes has gathered support from statements publicly made at meetings of unemployment committees, farmers’ organisations and other gatherings, and the man whose few shillings a week represent a very real sacrifice naturally feels that if this kind of thing is going on he is suffering a serious injustice. He agrees with Mr. Jessep’s reiterated statement that the aim of the board and the whole country must be to re-absorb in permanent occupation those who are temporarily out of work, and not to establish relief work as an integral part of the Dominion’s industrial programme. This feeling will be strengthened by the Prime Minister’s remarks. 4 ‘Things are moving along very smoothly with the country’s finances,” he is reported to have said. “Our estimates of revenue are being maintained, events are following the course we anticipated, and there is no fear of sudden changes. An improvement has taken place in the general trading position and the national revenue is feeling the reflex of returning confidence.” If Mr. Forbes, who is invariably cautious in his utterances, can speak in this strain there is every reason for everyone to be .more hopeful. And not only is he confident of the soundness of the public finances; he expects that during the summer private employment will become increasingly available for those who require it, and he also ventures to express the hope that the additional employment found will be of a permanent nature. In that case, he. points out, the Government would be in a position to review the wages tax. In any case the whole country will expect a very full statement on the subject of unemployment soon after the opening of Parliament. While it is admitted that the Unemployment Board is doing well in its efforts to find productive work, there are many points on which the public desires, and is entitled to, fuller ’information than it has yet had. A balancesheet showing the disposition of the huge funds administered by the board should be published at the earliest possible moment, for the contributors have the right to know what the board is doing with their money and the purpose of the substantial reserve recently reported to be in its possession. It is also high time the board gave a detailed account of the extent and cost of its administrative organisation. It is not that anyone questions the board’s intentions, for most people realise that it has faced an extraordinarily difficult task and has done good work. But everyone who is contributing to the funds should know what is being done. If, as Mr. Forbes suggests, there is a possibility of reduction of the wages

tax, the more the taxpayers know about it the better. After such times as the country has been passing through cheerful news cannot be given too often or too fully.