REPRODUCTIVE WORK

Wanganui Chronicle, Volume 74, Issue 243, 14 October 1931, Page 7

REPRODUCTIVE WORK

NEW UNEMPLOYMENT POLICY COMPREHENSIVE STATEMENT BY THE MINISTER POSSIBILITY OF INCREASE IN EXISTING TAX Aii important statement outlining the Government’s new policy with regard to expenditure for the relief of unemployment, was made in the House of Representatives last evening by the Minister, Hon. J. G. Coates. The Government plans to make provision for the unemployed by gradually absorbing them in productive work, exploring every possible avenue of primary and secondary industry. More money will be required from the taxpayers, and it is possible that the unemployment tax will be raised from 3d to 5d in the £.

FACING THE PROBLEMS

PIONEER SPIRIT STILL LIVES “New Zealand is facing a crisis. Throughout her brief history she has faced many, but the spirit which has descended from the hardy and resourceful pioneers who settled this land, has enabled her to pass triumphantly on,” stated Mr Coates. “That spirit is not dead. We are faced with the position where the products of the great primary industries upon which tho existence of New Zealand depends, have fallen to such a level that to compete in the markets of tho world some adjustment is necessary. The result is that our industries cannot employ profitably the people of the Dominion, and as a consequence wo have unemployment to a greater extent than has ever been known in this land. “ Unemployment is a social malady, which, if allowed to grow, woul.’. sap the whole fibre of our people. Its immediate cure is of vital importance to every individual in the country. It is because of the importance of the subject and the necessity for the responsibility of its cure being realised by every citizen in New Zealand, that I appeal over the wireless to all. My appeal is that you take into consideration the way in which the whole commi nity will be affected. If largo numbers of our fellow-citizens arc allowed to remain out of profitable employment through lack of realisation of the position and of the energetic action necessary by all, it is imperative that everyone throughout the Dominion realise the position and uhe extent of their responsibility, however great or small, of doing their part. Present Position “In Now Zealand to-day more than 50,001' adult men arc registered as unemployed and many women and young people arc unable to find employment. As yet there is no tendency for these huge numbers to contract. Remember too, that in the three months, October to December of last year, the number of registered unemployed doubled. It again doubled in the first two months of the new year. Not all of the 50,000 men are wholly unemployed. Many of them arc engaged in part-time relief work for sustenance. We have not resorted to tho so-called “dole,” or relief without work, decision which, in judgment, was sound, and for which tho Government previous to this one is entitled to credit. Of tho men placed, however, more than 36,000 are employed under what is called the No. 5 scheme, which is mainly read work with pick and shovel. “The Unemployment Board is spending money at the rate of £2,500.000 a year, and more than nine-tenths of that large sum has been going into scheme 5. Much of the road work is useful, but it cannot bo described as directly productive, and as time goes on it becomes ever more difficult to find satisfactory road work to be under taken. Must Be Changed “The position as it is to-day must be changed. We cannot affora to become a nation of navvies. In tho interests of the country and of the men directly concerned, those w’ho are now unemployed or are engaged on unproductive relief work must, as far as practicable, bo directed into productive work. It is to this task that we must at once apply our energies. “An immediate objective will bo to move say 20,000 men from scheme 5 into productive work. That is a substantial number, though far short of tho total unemployed. Yet it is well to remember that every man placed and every forward step towards recovery will indirectly lead to the employment of other men. “The situation to-day is a challenge to our capacity to set thing? right. It is a challenge to our traditional way of doing things; a challenge to our traditional ways of thinking. I approach the question without any reconcelvcd theories of a general nature. 1 do not profess to have any magic physic nor do 1 profess to say tho last word on the way in which the question has to be dealt with in New Zealand. I expect criticism and I invite it, because I am convinced that the remedies to be applied will be as varied as are tho industries and districts of New Zealand. Some Basic Consideration “At the outset, however, I must start with some indication of my general viewpoint. It seems to me basic that: “(1) We should view our problem less as one of simply relieving unemployment or making work for work’s sake, than as one of enabling production to proceed. “(2) New Zealand has reached a stage in its development when its people must depend more and more on the fruits of industry and Jess on development work, national or local, out of loan money. “(3) We have unemployment because on present price levels it is uneconomic to employ labour under the conditions on which it must be employed. Unemployment will only be solved when the wheels of industry revolve of their own volition and again employ labour to the fullest extent. “(4) Primary production from our farm lands is the keystone of the Dominion’s economic structure. It is

essential that the unemployed labour should be directed from road and unproductive work to productive work on tho farms. This la the policy which tho Unemployment Board, by every possible means, intends to pursue. So far as the men engaged o' road work are concerned, the ideal must be to move them “over the fence” on to the land. “(5) Important rs farming is, we cannot hope to absorb in it the 50,000 men now unemployed. After 90 years* development New Zealand has 80,000 farmers. It would bo vain to expect now to place 50,000 additional men on the land. Consequently wo must look also to other productive work for the absorption of the unemployed. “It may be held necessary to take action to relax the restrictions noW militating against the employment of labour on a neconomic basis. This, I recognise, raises controversial issues bearing upon the labour legislation, and I shall not deal with the matter here. “(6) It is also to be recognised, I think, that in expending moneys on productive work wc must take into account, not tho equal allocation of funds as amongst districts, but those purposes and localities which promise to be most economically justifiable. Finance. “Now comes the word that confronts everybody to-day. Finance. Without additional funds tho task of transferring men into productive employment cannot be seriously attempted to-day. Every penny available to the Unemployment Board is being used. Its whole income, allowing lor recent increases in the unemployment relief tax and including the subsidy from ordinary taxations, is £2,oU(/,OUQ a year, ot less than £SO,UUU a week. Its expenditure now is at the rate of £50,U00 a week, and so iong as there arc 50,000 unemployed men this expenditure cannot well be reduced. Ail members of th Unemployment Board are closely in touch witii the realities of present conditions in New Zealand. They are aware of the very real sacrifice that has to be borne, not only to consider the necessity for recommending an increase in the charge by 2d in the £l, that is to say, from 3d to sd. Every effort is being made to avoid the necessity of additional taxation, yet if the steps I necessary to effect an improvement can. not otherwise be taken we must not hesitate to ask for further funds. Land. “Given the necessary funds the Unemployment Board and the Government will proceed vigorously with the task of movirtg men into productive work. I We turn first, as I have said, to the land, and in speaking of the land our first effort inudt bo directed to see that the farms already occupied are enabled to absorb additional labour and to increase production. Everything that retards tne prosperity of tne farmer adds to unemployment. By helping the farmer we hoip everyone in the country. Already the board has devised plans under which farmers may obtain additional and subsidised labour under scheme 4 (A). <Tlie board desires that it should be ior development wora, but provided the labour ir additional to that which would otherwise be employed and docs not displace men al- ! ready in employment it may be used for > productive work not entirely developi mental. Under this schfeme the board jfinds 10s per week for single men arid 20s per week for married men, the farmer providing food and lodging. After I being temporarily suspended this ■ scheme again operates a*s from October (J. Under another plan, known as I sthenic 4 B, we will assist in developI ing farm lands on a contract basis. The Unemployment Board pays onethird of the wages of men engaged on contracts for developmental work on farms. It is open to any farmer in New Zealand now to apply for men under either of these schemes. For labour under scheme 4A he should get in touch with the nearest local unemployment committee or branch office of j the Labour Department or his local | postmaster, and for labour under scheme 4 (B) ho should apply to the i Commissioner of Crown Lands for his district. New Devclopmaut. ‘‘Apart from existing farms we must sec to the bringing into cultivation of new land. In consultation with my colleagues and their departments, we arc examining afresh the possibilities of opening up blocks of Crown lands. 1 am pleased to be able to say that we, have under review, with the’ invention of taking immediate action, a block of 48,000 acres. In another instance an area of 20,000 acres now subject to flooding at high tides may be reclaimed. In still another case there is a possibility of reclaiming some 50,000 acres now subject to flooding at high tides may be reclaimed. In still anotner case there is a possibility of reclaiming some 50,000 acres of first-class land. Already some relief camps for single men have bee established and it is hoped to use them as part of the plan for bringing land into use. The relief pay (1 emphasise that it i 8 not wages)’is lower than we would wish but its limit is fixed by the funds available. 1 recognise too, that conditions are not ideal. Hoz could they be in experimental camps? But no effort will be spared to ensure that living conditions will be comfortable. Let me add, too, the men ( r -h ft ? d °“ t f ° r devc,0 P i “g these lands will be given an opportunity, if they desire, to acquire sections when the land is partially or wholly developed.

This is but a beginning. More will follow. I am not satisfied that we have yet done enough to explore the possibilities of absorbing men on the land* Good ar> the plans arc that have already been devised, the;, do not go far enough. Wc arc with the fact that with 42,000 men placed under .he various schemes less than 0000 are on the land. More that 36,000 are on tho roads. Small Farm Settlements. “We are giving consideration to the establishment of small farm holdings. Wc have the land, we have the cottagci or hutments of the type used in Public Works camps, and we have the men anxious to get on the land. Can we not bring these together? We might visualise a group of cottages—-not ovet* elaborate, it is true, but more acceptable than the conditions that many must now accept—cottages with a few acres o* land on which families could occupy themselves part time. Familiec grouped together around a centre might develop into a prospering, self-reliant community with a social life and amenities of their own. This is but an idea roughly sketched. It is something that may lie ahead, something that could not be tackled in a day, but only with careful forethought and planning. At the moment wo have under consideration a plan to place a definite num* be • of families in cottages in country villages and districts. Another form of possible assistance, both for farms and for industry, is that of a ’labour loan* by which the funds available for relief might be used to tide over the difficulties or people temporarily unable to finance the necessary labour. The proposal is being investigated with a view to its adoption, and I am sorry I am not in a position to say more on it just now. ‘ ‘ To assist in the work in hand I now propose to summon the counsel and assistance of chairmen of county councils throughout New Zealand, in association with their colleagues and all other persons who can be helpful. It has been my privilege to occupy the position of a county chairman, and from that experience 1 am aware of the heavy responsibilities and skilled knowledge that occupants of that office must have of local affairs. My hope is that from their knowledge of local conditions they will be able to throw light upon the best means of attacking the problems on hand. They will indicate blocks of land, public or private, that are worth consideration. Recognising that existing farms mustf absorb far more men, they will suggest effective means of attaining this end. Any plans devised here in Wellingtoa must be adapted to the varying local needs. County chairmen and those whom they cad together will be able to give advice of unique value. 4 ‘ln this regard our object must be to bring the country into complete organisation and to use in this crisis the genius inherent in our people. I am at once sending a letter to every country chairman to deal more fully with this subject. Reliance on Local Committees 4 ‘This brings me to refer to thu work of the local unemployment committees and other bodies that are helping to-day to meet out difficulties Almost every city and town has its local committee. In all some 2000 men and women are giving services voluntarily. Members of local bodies of all ■ kinds, people in every organisation and every walk of life, are doing their bit. Members of these committees recognise, I am confident, that they hold a position of serious responsibility. They arc not merely advocates of the claimn of the unemployed. Theirs is a trusteeship charged with the duty of guarding the general interest, of conserving our resources, of using to the bes' advantage every penny of the limited funds available. They must recognise that unemployment relief must not be ' made so attractive that there is any incentive for workers to remain on the same. In fact, every facility and inducement must be given to them to become absorbed as soon as possible in the ordinary life of the country. To the self-sacrificing work of all I want to pay my tribute. 4 ‘ln speaking of committee work I am not unmindful of the imperative need there is to sec that the services of all Government departments aro coordinated for the most effective attack on the problems in hand. Secondary Industries, Etc. 1 have referred at some length to the machinery loresuadowed for attacking our problems and of the vital importance of the work of local unemployment committees. 1 have spoken of xarming as our paramount industry. But, as I nave said, we cannot hope to divert anything like 50,00 U men on to the land. We must look to other avenues as well. ‘‘Gold prospecting and gold mining arc enterprises witn special promiso to-day. jhe Unemployment Board and the Mines Department arc cooperating to encourage and guide unemployed men in such work. Already a grant of £2OOO has been approved for prospecting. Thirty parties with 100 men have set out and they have shown fine resuits. There is a general revival now in Kumaru, Hokitika, Thames, Marlborough and Otago. “in recent years New Zealand has turned to forestry as an enterprise of special promise. There is scarcely a country in the world where the rate of growth of trees is as rapid as ia New Zealand. With our heavy rainfall the annual growth of standing timber is five times as great as lu many countries that are afforesting for profit. We have, however, lacked <»ne thing and that is research and development in the utilisation of timber products. Consideration is being given to possible ways of associating the Government and private interests in research so that tho extended use of New Zealand timbers on a competitive basis may be encouraged. ‘‘Flax-growing and the general development of that industry’ are enterprises that are engaging our attention. ‘‘Critical examination is being given to the prospects of developing for fruit-growing the clay lands of the North, a project that would at once yield gum for sale and bring land into cultivation for small fruits. 1 am informed that the technical probfeins involved in the storage and export of these small fruits have been solved. Thu prospects of developing a substantial overseas market are bright. These arc examples of possibly productive works that are being explored. j

Manufacturing ‘‘To the utmost of their power the Government and the board will stimulate and encourage manufacturing and other industries. I believe that it is possible and necessary to absorb a

great deal more labour through the development of our manufacturing industries in the Dominion. Industrialists must recognise, however, that they are required to find an aitcrnatii e to the easy method of the protective tariff, which in too many cases already allows New Zealand industries to continue unco ordinated, ill-organised and noon an uneconomic basis at the expense of the consuming public. One grtwe weakness of our industrial position at present lies in the fact that we have so many lirius working independently of one'another and all attempting to produce small quantities of a great variety of “lines.” Manufacturers must recognise that the onus rests upon, them to place their indus tries upon a more economic basis by agreeing upon some scheme of coordination and specialisation in the lines they produce, thus enabling them to reduce prices. When we turn our attention to the possible extension of New Zealand’s industries, primary or secondary, it is certain that the kej to the problem is the market for the things we produce. Buy New Zealand Goods •So far as exports are concerned our country must compete in the markets of the" world at prices determined in the markets of the world—at prices which we cannot control. Our problem here is to reduce costs. We are not, however, wholly dependent upon the outside world. W’e are not altogether helpless in regard to markets for the things we produce or might produce. There is a part of our economic life that is within our own immediate power to control. It may, indeed, be a part that is somewhat smaller than the part in which we are dependent upon the outside world, but just because it is something which is within our own responsibility it is something which we cannot too strongly emphasise. Wither our local industries will prosper, whether employment will be offered to our people, depends in a great measure on the choice made by individual men and women in their day-to-day buying. It is a responsibility admittedly of the Government and of local bodies, but, far more important, it is a responsibility of individual men and women—of women particularly, I might add, for the great bulk of the final retail buying of the world is in the ha ;of women. “At this time when there is need to do everything in our power to revive industries in New Zealand I want to make a very special appeal to take deliberate and conscious thought in buying goods that, where price and quality are right, we should consider afresh the merits of goods made in our own country. Assist in Recovery ‘ * There are some other specific directions in which, by taking thought, our people can help to restore prosperity and can help to lessen the burden of the depression while it lasts. Let me refer to one or two of these. So far as Government deparments, local bodies, manufacturers and private individuals are concerned, my first appeal is that they should, as far as possible, buy New Zealand goods in preference to all others, providing the price and quality are right. If they cannot buy New Zealand goods they should look to the country which, above all others, buys from ous,that is to say Great Britain. While Britain is depress© ’ we cannot prosper. The surest way that wo can help her and thus help ourselves is by buying British goods. This is my first appeal. “To all employers of labour might I make an appeal to a course of action which I fully realise many of them are already following? When business is slack let them help to tide us over difficult times by sharing employment, by rationing work. This is always difficult and will sometimes be impossible, but to the extent that it can be done employers and manufacturers will render a service in doing it. It is a time, too, when some firms can properly consider the prospects of manufacturing for stock. One suggestion which can be of only restricted application is offered here. In some occupations it may be possible, as an emergency measure, rather than dismiss regular employees to give leave of absence without pay for a period of weeks. Where this can be considered, workers and employees thems Ives, who are in a position to do so, might be invited to apply for leave so that the initiative and selection would come from below rather than be imposed in a manner to cause hardship. It is a small point, but it is worth considering. Time For Odd Jobs “Addressing myself to a wider audience, may I make a further appeal? Prices have now fallen low and we may reasonably suspect that they have reached rock-bottom. There arc indeed goo<’ grounds for believing that, in the light of the events of the past few weeks, prices may now move upwards We are well entitled to be hopeful. This is a time when all sorts of useful work, the repairing and painting of property for instance, much of it in the nature of odd jobs, can be undertaken. It is a time, too, I dare say, when well-chosen expenditure is wiser than saving. To-day there is every good reason why mortgagees, be they State Department or private lenderi, should give financial assistance to protect the property that is security for their loans. This is a sound business proposition. “I have one other specific appeal to make, addressed to those who are usually classified as “employers” and not less important. Amongst the more than 50,000 men who are registered as unemployed, there are scores and hundreds with exceptionally high qualifications; there are able and skilled men temporarily out of work who are compelled to-day to take navvying work for sustenance. Their names and their qualifications are enrolled in the Labour Department’s employment bureaux. They are anxious to get in touch with those who can place them in employment in their own trades. Will all employers who can offer work get in touch with the employment bureaux of the Government Labour Department? Other Matters “I ha.e come to the end of my statement, and there are many subjects I have not touched upon. The whole problem of unemployment among women, for instance, is one that is en gaging our attention. It is one in which, I may say, everything that can bo done will be done. The co-ordina-tion of social services is a necessity of

which we are fully conscious. “The necessity to provide avenues of employment for young lads just leaving school is ever before our minds. This is one of the most tragic phases <»f the depression. Men who havo passed middle age have more or less formed their characters, but boys leaving school at the ages of 16 and 17, with all the high hopes of boyhood before them, will be irretrievably ruined if, in the next two or three years, they find they are not wanted. The country must resolutely face this position. Every avenue of employment possible for boys must be opened, every opportunity to learn any craft or trade must be made available. “Then there is the special and very difficult problem arising from the stopping of railway construction works. This is difficult but it will be faced squarely. It will be dealt with in a separate statement to Parliament. Thanks “In the whole task of unemployment-! am happy to say, w T e are receiving the co-operation of local committess and men and women throughout the country. To’ these again I want to return thanks. I want to acknowledge, too, my gratitude to all of my colleagues in the Ministry and to Members of Parliamc ’t for the assistance they are giving. To an especial degree I want to express my appreciation of the services of my predecessor as chairman of the Unemployment Board, Mr S. G. Smith. May I say that to my fellow-members of the Unemployment Board, M. E. Jessep, the deputy-chair-man, Mr Malcolm Fraser, the Commissioner of Unemployment, Mr Bromley and Mr Climie, I am indebted for helpful co-operation. One cannot have even the smallest part in de*, ing with the unemployment problem without being moved to admiration for the right shown by those on whom the burden of the depression has fallen most heavily. It is something that recalls to our minds the character of the pioneers of the country. 1 Finale ‘‘Faced with so large a number of our fellow'-citizens seeking employment, it is imperative that all bend their energies to solving this great problem. It is a great task, but not greater than the spirit of New Zealand, not greater than the spirit which enabled the pioneers of this country to con uer the forests, the rivers and tin plains. V*'e must not dwell too much upon the depressing influences of the position as it is to-day, but look forward with confidence to a brighter future, bending all our energies to bringing nearer that brighter future. It is a challenge, as I said at the outset. It is also an opportunity.’’ Mr Semple’s Question Replying to a question from Mr Semple, Mr Coates said that the Unemployment Board would bo prepared to consider the question of a subsidy for new industries in cases where there was a reasonable chance of success and where men would be brought into employment. It had to be remembered that brings men into employment was the most important consideration.