UNEMPLOYMENT FUND

Timaru Herald, Volume CXXXVII, Issue 19623, 18 October 1933, Page 6

UNEMPLOYMENT FUND

AN ADEQUATE CREDIT MINISTER REVIEWS THE POSITION By Telegraph—Press Association WELLINGTON, October 17. In a statement to the House of Representatives this afternoon, as to the estimated position of the Unemployment Fund in regard to revenue and commitments at September 30, the Hon. Adam Hamilton said that in spite of the very heavy demands that had been made on the fund during the first half of the present financial year, it had been possible to maintain it adequately in credit. This was due mainly to the buoyancy of the revenue being received from unemployment taxation. At the commencement of the financial year, April 1, there had been in the fund an approximate surplus of £334,000. The revenue in sight from April 1 to September 30 amounted to approximately £2,350,000. For the same period there had been a total expenditure of £2,498,600, showing for the first six months an excess of expenditure over revenue of £148.600. In addition commitments of £440,800 had been entered into, which would not fall due until after September 30. If the forward commitments were charged against revenue received to September 30, there would be a deficit of £255,400. The actual position was as follows: £ Cash in hand 600.149 Temporary investment .. .. 100,000 Total £700,149 Revenue Exceeds Estimate. The Minister pointed out that all the cash in the fund was not available at any time for expenditure, because a largo amount represented tax paid in advance. The revenue for the year was estimated at £4,300,000, and the returns for the half year were actually £200,030 in advance of the estimate for the period. It was only prudent that funds should be held to meet commitments, maturing subsequently Thus the actual cash in the fund was not more than was reasonably necessary in view of the taxation received in advance, and commitments not yet charged against the fufid. The Mini'/er said that the total expenditure di ring the winter (£2,498,600 compared with £1,800,000 last winter), represented a very heavy burden on the fund. For a number of weeks past the weekly expenditure had been more than £IOO,OCO. Henceforth the expenditure would require to be considerably less than during the six months under review, and the present taxation would have to be continued. He added that the worst period of the year was over so far as unemployment was concerned. ar.cl with the improvement evident in the economic situation, and the start of seasonal activities, the Board was hopeful that a considerable reduction would take place in the numbers of unemployed. Building Subsidy. Very heavy commitments had been incurrci in subsidy payments under schem. 10. Since the revival of the schema in June there had been a subsidy (ommitments of £483,000, and there were still many hundreds of applications before the Board. The total value of the work to be undertaken under the present subsidies was £4,127,000, representing a direct labour expenditure of £1,177,000, and an indirect labour expenditure of a further £2,225,000. It was hoped that the stimulus given to the building trade would have very beneficial results on the trade and industry generally. There was no reason to doubt that the majority of those receiving the subsidy were observing the spirit and intention of the scheme. This should be recognised as a personal duty. Unfortunately a certain amount of abuse had been reported. The cases were being investigated and legal action would follow where definite proof of abuse was established.