PROVISION OF WORK

Taranaki Daily News, 8 November 1935, Page 7

PROVISION OF WORK

UNEMPLOYMENT RELIEF SUCCESS OF BOARD’S EFFORT. STIMULATION OF INDUSTRY. MR. SMITH DEFENDS POLICY. The work of the Unemployment Board was detailed by the Minister, the Hon. S. G. Smith, in his address at New Plymouth last night. Impetuous and ill-con-sidered attempts to obstruct or sharply divert the course of economic forces would have only disorganised the community still further, he said. As in coping with other kinds or catastrophe, the Government followed the sane course of treating the problem in two phases. First, the immediate institution of temporary relief measures; secondly, the comfnencement of planned measures for reconstruction along lines natural to the normal industrial activities of the time. In neither phase was there any previous experience to draw upon. Every step taken was necessarily experimental. ... The unemployment legislation was based on the findings of a special committee of inquiry, which exhaustively examined the subject as it affected New Zealand. A maximum of 20,000. unemployed was the figure then anticipated. This was a very generous margin, in view of the fact that in November, 1930, registrations numbered only 7400. Even that number however, regarded as alarming in those days. But less than four months later it had risen to 38,000 by a practically unbroken succession, of week to week increases. The depression continued to intensify, and the unemployment figures continued steadily to rise, past the 40,000 mark, past 50,000, past 60,000 and finally 75,000 was left behind. It was not till early this year that the figures feU below the 50,000 mark, which had been passed on the upward trend in 1932, continued Mr. Smith. AU this time the Unemployment Board was struggling with the problem of making an organisation designed to deal with 20,000 meet the requirements of up to over 75,000 unemployed. It was a stupendous task, involving ceaseless effort on the part of the board and its officers, practically all of whom, outside the main centres, were postmasters who had in addition to perform their ordinary duties. PERMANENT WORK. It was not surprising that, under these conditions, the purely relief side of the board’s work was most prominent. But the importance of permanent and re-con-structive work was not at any stage lost to sight. Its progress was merely delayed by the imperative financial demands on the board’s purse to meet immediate necessity. The board early, adopted the principle of applying stimulus to selected key industries. .The principal virtue of this principle was that stimulating influences applied at key points were diffused through the existing arteries of industry and cumulative and indirect y beneficial results over wide areas, tn many cases remote from the point ot application. One of the most successful illustrations of what had been done in this way was the board’s subsidised building scheme. ' The stimulating influence of the subsidy scheme was almost electrical. Houses left in an uncompleted condition were recommenced. Deferred plans of house builders were dug out, tenders were let, and timber stocks began to move again. The wheels of the sawmills began to turn. The ring of the axe was heard again in the bush. Manufacturers of household fittings and furniture began to take on hands to fill the new orders. The iron and steel workers were benefited by orders for gas an electric, stoves. Tradesmen whose skill with their tools of trade had begun to disappear through idleness or the unaccustomed labours of relief work were again employed. . Since the building scheme was started, it had caused the commencement of jobs costing £9,300,000. Of this £8,000,000 went into the pockets of workers throughout New Zealand by wages earned at award rates. The cost in subsidies had. been only £777,000. So that for an expenditure of £777,000 the Government bought standard rate full-time jobs worth £8,000,000 ir\ wages. FLAX INDUSTRY RE-ESTABLISHED. The board had practically re-establish-ed the flax industry, which fell into quick decline at the beginning of the depression. The board paid an export subsidy of £4 a ton on all hemp export ed. This had resulted in keeping many flax mills working which would otherwise have had to close down and discharge their employees. The board, in co-operation with private enterprise, was seeking means of improving the quality and range of flax fibre with the special purpose, of producing a finer and. softer fibre that could be used for spinning. Favourable reports had been received on experimental lots. This opened up the possibility of a much wider market for New Zealand flax, and up to £3O per ton could be expected lor the spinning The board’s efforts to assist the tobacco growing, kauri gum and other industries were also outlined, One of the biggest propositions the board was at presen tackling in its endeavours to get new industries started was one which has for its object the commencement of the Steel industry in New Zealand, he said. The board had shared the cost of obtaining a full report on the scheme from an eminent firm of English experts, whose representatives were sent to examine it. The report opened up very promising prospects. The cost of establishing a fully-equipped steel manufacturing works was very considerable and before committing itself to further assistance the board was setting up an expert committee to advise it on what steps, if any, should be taken towards getting the industry going, LONG AND SHORT TERM PLANS. The development of industries was proceeding apart from the long and shortterm plans for the absorption of unemployed on full-time at standard rates on public works. The short-range P l '°" gramme which had been announced would absorb 8000 men, Work was still proceeding on the long-term programme, The Unemployment Board'had already investigated the possibilities of establishing an eel-canning industry, and had made a loan to enable it to be started. A shipment of canned eels was now on the water en route to England to test the market. A total of 488 families were established on small holdings and made independent of unemployment relief in the wholesome environment of country life. After 12 months’ experience of the scheme it was decided to expand it in a manner which would make the . settlers eventually self-supporting. So in 1933 the Government brought down the Small Farms (Relief of Unemployment) Act. This Act set up’ a special small farms board to direct the scheme,, with the advice of district committees of experienced men. It was then aimed to place future settlers from the ranks of the unemployed on farms which would carry 30 to 35 cows. The sum of £l2OO was therefore fixed as the approximate limit that would

be granted for the settlement of one family on a farm, with stock and dwelling provided. Many families, formerly unemployed and without any prospects for the future, were now happily placed on these farms, which they walked into as going concerns without having to provide a penny piece. There was another branch of the small farm scheme which had provided an avenue of escape from unemployment relief for many relief workers and their families. This was the share-milking scheme. A total of; 754 families had been successfully placed on small farms at September 17, and 322 shaiemilkers, formerly unemployed, had been settled into cottages, with regular employment, and an assured living. In addition the Government had 1200 men working on the development of over 35,000 acres of new farming land. From these 492 would be chosen to be occu- /. piers of the small farms they were creating. They would walk into them as go* Jng concerns, -with pastures established, stock provided, fencing up, a cottage erected, and a cash allowance from the unemployment fund till they get on their feet, and they will have to meet interest only on £l2OO. A voice: And walk out with nothing. (Laughter.) ■ “It is not a promised ideal for New Zealand,” said Mr. Smith. “It is real. Today over 1000 families have, through its operation, exchanged the worries of unemployment for an assured living on the £ land 99 A voice: Who is the author of that? (Laughter.) \ .