UNEMPLOYMENT FUND

Timaru Herald, Volume CXXXVII, Issue 19806, 23 May 1934, Page 8

UNEMPLOYMENT FUND

THE FINANCIAL POSITION SURPLUS OF £444,000 By Telegraph—Press Association WELLINGTON, May 22. In announcing the financial position of the Unemployment Fund for the year ended March 31, 1934, the Minister of Employment, the Hon. Adam Hamilton, said that although he was not able to supply the final audited figures, the estimated position 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 a surplus of approximately £334,000. The beard estimated that its revenue would be £4.300.000. The actual revenue was £4.411.000, which, added to the above surplus, gave a total fund available for the year of £4,745.000. The total expenditure for the financial year, together with commitments to accrue for payment before March 31, 1934, was £4,301,000. It could, therefore, 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, of £444,000. These figures showed that out of a total expenditure of about £4.500,000 the board ended the year in a better financial position to the extent of £IIO.OOO. which was about 21 per cent, of the total revenue for the year. A Satisfactory Position. The result of the year’s operations, said Mr Hamilton, should be satisfactory to those who provide the 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 c ommitments, including those due for payment after March 31, which amount to £627.000. it would be seen that surplus in hand would not be sufficient by £183.000, but it was reasonable to allow commitments to fall

due after March 31, to be at least partly balanced by revenue that would accrue during the same period. “Exception on several occasions has been taken to the amount of the cash balance in the fund.” said the Minister. “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 are 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.” Not Prepared to Recommend Larger Tax. “As chairman of the Unemployment Board I am not prepared to recommend the Government to increase the tax in spite of insistent demands made,” stated Mr Hamilton. Care had been exercised that in solving the problem a worse position was not created. The position of the taxpayers had to be watched as well as that of the unemployed. As trustees of the fund the Board had to give as generously as possible while keeping' the fund solvent. 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. The Board had no desire to withhold anything it could give in a fair way, and the State had the 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 co-operation of all citizens,” said Mr Hamilton. “In Palmex-ston North some people are 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 used. The responsibility is theirs and the Board will not stand it being laid at their feet. The question was whether Palmerston North got its full share. Palmerston North has got its full share and running over, and* those men have no right to demonstrate in that street there, and you businessmen have no right to request more, though I don't think you would. There is no place in New Zealand that has had a better hearing, relatively, than Palmerston North. I was surprised myself when I went into the position,” he said.