UNEMPLOYMENT RELIEF

Wanganui Chronicle, Volume 75, Issue 118, 21 May 1932, Page 5

UNEMPLOYMENT RELIEF

AN IMPORTANT STATEMENT THE BOARD’S FINANCES An important statement was made by the deputy chairman of the Unem ployment Board, Mr. J. S. Jessep, regarding the finances of the board, while addressing a meeting which was called by the Wellington branch of the own Planning Institute to discuss means for a district scheme of relief and development works. The reasons why the shilling in the pound tax had not increased the board’s finances fourfold were explained by Mr. Jessep. He expressed the appreciation of the Unemployment Board of the efforts made by the Town Planning Institute all those associated with it in the preparation of the report made, but said that the suggestion that the subsidy from the board, now applying only to wages, should be extended to cover at least part of the cost of supervision and materials warranted the opinion that there had not boon a full realisation of the amount of the funds available to the board or of the calls upon the board for its funds, Danger of Further Taxation. “I want to emphasise,” he said, “that the funds that are going to those who are unlucky enough to be out of work are being drawn obviously from those who are lucky enough to be still in employment, and from no other source, and as you narrow the gap between those ir- employment and those who are out of employment so you automatical!v t duce the funds available. There are many traders, shopkeepers, and small farmers who are very nearly on the border, and if through extra taxation we push them over the border line, then we shall have, not an increased, but a decreased revenue. ”

Many small shopkeepers, tradesmen, and farmers were in no better position than married men on relief works, ho added- in fact, when it was remembered that men who were not on relief works had now to pay Is in the pound on their wages, whereas those on relief work were paying only the levy, the margin between the two was exceed ingly narrow. “The constant agitation by extremists might easily result i.i alienating the sympathy of the struggling farmer, tradesmen, and shopkeepers,” said Mr. Jessep. “Ninety-five • -‘nt. of the unemployed are our ordinary levelheaded fellow citizens who have fallen on evil davs, the remaining 5 per cent, arc taking advantage of the distress to cause turmoil and strife and make the whole position, both to those on relief and those who are supplying the relief, worse than it is to-< '• Ihe board’s constant endeavour is to seek to get industry reestablished. It would be impossible to do this if the measure of relief became such that it verged upon the position at which wo might expect industry to commence to function.”

The New Tax. “I would like very briefly to set out for you some of the salient .points in respect of the board’s financial position,” he continued. “The income of the board at the end of the financial year just ended was on a basis of approximately £2,600,000. This was made up as follows: £400,000 from the levy, and £900,000 Lum the tax an salary and wages. Both those figures are approximate, and cover a full year’s operations, and make a total of '£1,300,000. In addition to that income, the expenditure from the board’s fund was subsidised £ for £ from the Consolidated Fund, making the total income ju.‘ mentioned of £2,600,000. A very erro- us impression has gained wide credence with the public that the increase ip the wages tax from 3d to Is in the £ means that the board's income has been quadrupled. That suggestion is very wide of the mark indeed. In addition to the loss of the subsidy from the Consolidated Fund, which not only doubled the income from the wages tax when it was at 3d, but also doubled the income from the levy, there is a very serious loss owing to the fall in incomes generally.

“Although for a portion of last year the 3d in the £ tax on wages and income produced at the rate of £900,000 per year, it is patent to that the Is will not pr nluce four times that amount. Thousands of our citizens contributed heavily last year on the basis of their previous ye' r’s income. This year they will not be called upon to pay as much, although the basis is so much higher. TL.' estimate for this year is that the total income of the board will not exceed from £3,500,000 to £3,750.000. Estimate for the Year. “If the full amount of this estimate is realised, says, £3,750,000 for the year, it means a weekly income to the board of £72,000, and the total number registered, plus those who are receiving assistance from the board but have been taken from the register, totals 58,475 as at May 3. Of this number 48,601 were dependent for their relief under what is known as sc’. 'ine No. 5. The commitments outside reheme No. 5, including farm developmc ‘ work, drainage work, gold mining, and subsidising of industry in an attempt to provide lore regular employment, is estimated to cost the board in a full

year £1,000,000. “It will be realised by you gentlemen here that many of the ».orks which are being carried out in the country of a developmental character, whilst much more advantages: from the country’s a - 7 the workers’ points of view, arc more expensive to the board than scheme No. 5. If the £1,000,000 as suggested -a near estimate of the cost outside of >-.•heme No. 5 it leaves only an income of £52.770 per wool- " •• the purpose of carrying on scheme No. 5 at the present figures One has only to compare these two figures—£s2,ooo and 48,000 unemployed —to r Use the difficulties that the board has to overcome, particularly when demands are made on the board such as are being made at the present time by the relief workers in the Wellington district. It has already been pointed out that the demands, if appl: ' to the whole of the unemployed in the Dominion, would cost approximately £5 ’90,000. Increased Demands am Taxation. “It is an important point which is continually asked as to what is a fair thing to pay a relief worker in the way of wages; but it is also an important question how much more in the way of taxation can the public stand without precipitating absolute ruin. Tf all th" advocates for increased expenditure, increases in allocations, and increases in wages to relief workers

would simultaneously admit the additional expenditure and advocate a proportionate increase in the taxation, it would be much easier to deal with as far as the board is concerned. Our position is that, a fund is created, and. as I have pointed out, the maximum amount in that fund will be approximately £3.500,n00. We can only distri bute that amount in the most equitable fashion, and at the same time in such a way as to er.mre that some proportion of it can come back again to the country in the way of increased production.”

“I reiterate,” said Mr. Jessep. “that when responsible people insist, that allocations must be increased and relief extended to within measurable distance of that earned in ordinary industry, then such responsible persons must understand quite clearly that ♦l'.py are, in effect, asking that the present unemployment tax of Is in the pound be increased. There is a poin* beyond which taxation cannot go, the source of supply must inevitably be diied up. •' ’