NO INCREASE IN THE TAX

Taranaki Daily News, 23 May 1934, Page 6

NO INCREASE IN THE TAX

FUNDS FOR UNEMPLOYMENT POSITION NEEDS TO BE WATCHED. INDIGNATION SHOWN BY MINISTER. SCENES AT PALMERSTON' NORTH. By Telegraph—Press Association. Palmerston N., Last Night. “As chairman of the Unemployment Board I am not prepared to recommend the Government to increase the tax, despite the insistent demands made,” stated the Hon. Adam Hamilton, Minister of Employment, to-day. Care had to be exercised, he added, that, jn solving the problem a worse position was not created and the position of the taxpayers had to be watched as well as that of the unemployed. As trustees of the unemployment fund the board had to give as generously as possible, while keeping the fund solvent, said the Minister. He was as soft, hearted as most men but the pull on the fund was all one way, and he often wondered why the taxpayers did not demonstrate for a reduction of the tax. The board had no desire to withhold anything it could give in a fair way and the State had a right to expect the help of local body men or otherwise a rod would be made for their own backs. “I think we should appeal for the . cooperation of all citizens,” said Mr. Hamilton. At Palmerston North some people were not standing up to the responsibilities of their own office, but the board would accept no responsibility for blame if public meetings were held and extravagant language was used. The responsibility was theirs and the board would not stand the responsibility being laid at its feet.

The question was whether Palmerston North received its full share. “Palmerston North has received its full share and running over,”- Mr. Hamilton asserted, “and those men have no right to demonstrate in the street and you business men have no right to request more, though I do not think you would. There is no place in New Zealand which has received a better hearing relatively from the unemployment fund than Palmerston North. I was surprised myself when I went into the position.”

Announcing the financial position of the Unemployment Fund for the year ended March 31, 1934, when addressing the Luncheon Club, the Minister said that although he was not able to supply the final audited figures the estimated positon was now sufficiently known to enable him to make a provisional statement, which to all intents and purposes would be sufficiently accurate for general information.

At the commencement of the financial year there was in the fund an approximate surplus of £334,000. The board estimated that its revenue would be £4,300,000. The actual revenue was £4,411,000, which, added to the above surplus, gave the total fund available for the year £4,745,000. OVER FOUR MILLIONS.

The total expenditure for the financial year, together with commitments to accrue for payment before March 31, 1934, was £4,301,000. It therefore would be seen that at the end of the financial year there was an estimated surplus calculated on the same basis as at the beginning of the year, £444,000. These figures showed that out of a total expenditure of about four and a half millions the board ended the year in a better financial position to the extent of £ll,OOO, which was about 2J per cent, of the total revenue for the year. The result of the year’s operations should be satisfactory to those who provide funds, and it should be evident to relief workers that due regard had been given to their needs consistent with maintaining a balanced fund. If the board took into account all its commitments, including those due for payment after March 31, which amounted to £627,000, it would be seen that the surplus in hand would not be sufficient by £lB3'ooo, but it was reasonable to allow the commitments that fall due after March 31 to be at least partly balanced by the revenue that will accrue during the same period. Exception on several occasions had been taken to.the amount of cash balance in the fund. The larger amount of £621,518 at March 31 last against the preceding March 31 of £424,426 is accounted for mainly by the fact that there were greater future commitments at the latter period than the former. Furthermore, it is always necessary to have a fairly substantial cash balance because many of the outstanding accounts do not reach the Treasury until some considerable time after the date of payment.