UNEMPLOYMENT FUND

Timaru Herald, Volume CXXXVII, Issue 19300, 29 September 1932, Page 4

UNEMPLOYMENT FUND

SURPLUS FORECASTED. NO INCREASE OF TAXES LIKELY. By TeleeraDh —Press Association. WELLINGTON, Sept. 28. In a statement in the House of Representatives this afternoon, the Hon. A. Hamilton, acting Minister of-Un-employment, said: — “When in May of this year the tax on wages, salaries, and other incomes was raised to 1/- in the £l, it was'estimated that the Unemployment Bofird’* revenue from all sources would be in the vicinity of £3,600.000 for the year ending 30th April. 1933. Sufficient time has now elapsed to enable the Board to form a reasonably accurate estimate. From the revenueireceived so far, it is considered safe to forecast that it will approximate £3.850,000 lit this period. If all commitments entered into by the Board, taking into account work that has been finished but not yet paid for, and foryjapd work committed but which is still in prpg.»-ts of completion, were met, there would be, excluding revenue recelyeduin advance, a surplus of over £IOO,OOO. This healthy position of the fund would give reasonable hope to anticipate* 1 that no further taxation will be necessary in this financial year. This will, of necessity depend upon the calls made on the fund during the remaining six months, due this financial year-f-that is from Ist October to 31st Marfh next. Such calls may consist of an increased number of registered unemployed. It is reasonable, however, to hope that the present number of approximately 73 per cent, should be very materially reduced during the summer months. If this takes place, the present taxation should provide sufficient revenue to meet requirements. It is questionable if In any other part of the world the financial arrangements of a Government for handling the unemployed problem are so sound as in New Zealand. The whole of this money, amounting to between three and a half and four millions, is being raised by taxation, and not from capital expenditure. Payments given to relief workers continue to be paid in return for work done. Most of this work is useful, and is building up valuable assets for New Zealand without adding to the national debt."