The Timaru Herald THURSDAY, MAY 3, 1934. PLANNING RECOVERY.

Timaru Herald, Volume CXXXVII, Issue 19789, 3 May 1934, Page 8

The Timaru Herald THURSDAY, MAY 3, 1934. PLANNING RECOVERY.

Although there, is little new in the economic planning proposed in the report of the committee set up by a conference of Auckland local bodies and others interested in the efforts being made to solve the problem of unemployment, the activities of the committee will be watched with interest from end to end of the Dominion. It is not necessary to say despairingly that the economic difficulties into which the Dominion has moved within the past few years have baffled the wisest men. On Hie contrary, the race is still undefeated in a struggle that will yet yield the triumphant recovery of a determined and unconquerable people. It is therefore of more than passing interest, even in this day of plans, programmes and panaceas, that a group of capable and sympathetic Aucklanders, are putting forward a plan for coping with unemployment. General endorsement will be given the committee in its pronouncement that the present system of relief is not satisfactory and not in the community’s best interests. The committee recommends that the unemployed, pending their reabsorption into industry, should be granted sustenance payment on the scale laid down in the original Act of 1930. Here we have the considered judgment of a thoroughly representative committee, after nearly live months’ consideration, recommending the introduction of the dole. It must be said in fairness to the Auckland investigators, that its views coincide with the convictions of an increasing body of public opinion in New Zealand which is rapidly coming into line with the policy pursued in the Homeland, with the support of the leaders and majority of the three principal political parties. The Auckland Committee, finding itself faced with the task of providing an alternative of the existing provisions lias brought down a recommendation suggesting that “throughout the whole period of their disemployment, steps should be taken to restore trade union conditions and that constructive work should be carried out at standard rates of pay. 4 ’ This recommendation is not only a deliberate challenge to the existing system of relief but is plain evidence of changing public opinion on the dole question. Manifestly such a course of action would involve fairly substantial borrowing, unless the local governing bodies can evolve some scheme for financing relief schemes. The Aucklanders boldly suggest, however, that “to give immediate relief locally the committee recommends the issue of municipal credit notes to the amount of 25 per cent, of the ordinary expenditure of the municipal authorities.” The abbreviated press message from Auckland furnishes no details of the proposed plan, outside a statement of the bare essentials. It would be interesting, we are sure, to know if it is proposed to issue paper money irrespective of the state of the municipal finances. Here the proposals clash with the policy of the Reserve Bank, which has had conferred upon it, by legislative authority, the sole right of note issue. The plan enunciated by the Aucklanders need not be abandoned for lack of finance, because it will ultimately become the function of the Reserve Bank of New Zealand to take up national problems and examine all the plans submitted to the Government for the relief of the economic and financial stress that still weighs heavily upon the Dominion. The Auckland Committee, however, had not exhausted its ideas when it proposed the issue of currency. Dealing with the broader question of providing work for the unemployed, the Committee says:

As it seems impossible to find employment for all workers in land development, a place must be found for a great number of unemployed in the secondary industries. Pull advantage should be taken of the most modern machinery in all industries, and hours of labour adjusted in accordance with the amount of labour displaced by machinery. An economic land settlement policy should be inaugurated on the lines of the village and group settlement, and new industries established to absorb boys and girls leaving school. Following up the views of others who watch the march of events, the Committee in its report, says that the first step toward recovery is to increase purchasing power, which can be done by finding useful and profitable work in the primary and secondary industries, and recommending an immediate economic survey to determine what are the possibilities of maintaining or improving the standard of living for the people of New Zealand apart from the exchange of produce overseas. We hope, of course, that the Auckland Committee has not overlooked the unsatisfactory state of affairs existing in the export business, because so much of our prosperity is bound up in the purchasing power of the people in the Homeland. Generally speaking, however, it may be said that the plan outlined in the report now issued in Auckland would certainly contribute to the task of finding a solution of the Dominion’s most pressing economic difficulties, if effect could be given to the principal proposals.