WASTING MONEY

Wanganui Chronicle, Volume 77, Issue 155, 3 July 1934, Page 6

WASTING MONEY

UNEMPLOYMENT FUNDS | NEW AVENUES SUGGESTED NECESSARY PUBLIC WORKS BUILDING SUBSIDY ADVOCATED The Wanganui Chamber of Commcfc« is dissatisfied with the manner in which the funds of the Unemployment Board arc being expended. It contends that insufficient attention is being paid to the erection of essential and necessary public works, which it considers should be used for the employment of relief workers rather than that payment should be made to the unemployed for work which will be of no future benefit to the country. The erection of a new post office at Wanganui and of a new bridge over tho Rangitikei River at Bulls were two instances mentioned at the monthly meeting of the chamber last evening in which the Unemployment Board'( funds could be used. It was also considered that the building subsidy (No. 10 scheme) paid last year should not be discontinued this year, but should rc-instated in order that people might renovate and erect private residences. Accordingly, two resolutions were passed. Both were moved by Mr. D. G. r O’Toole and seconded by Mr. A. E’/ Rankin. They urged (1) that the Government bo approached and asked la erect a new post office at Wanganui, unemployment funds being used for tho purpose and (2) that the building subsidy scheme should be re-instatcl as soon as possible and that it should apply to private residences. The chamber, on the motion of Mr. E. Ziesler, expressed regret that Mr. W. A. Veitch, ALP., had not shown a greater interest with regard to the chamber’s requests for a new Wanganui post office. Air. A. 8. Burgess, who presided, said that hundreds and thousands of pounds were being spent uselessly by the Unemployment Board on unemployed labour. If the Government would direct itself to carrying out useful works ’here would be a more lasting benefit to the community. There was no doubt, that a new post office was required at. Wanganui, the erection of which would provide labour for the unemployed and, at the same time, asborb New Zealand materials in the shape of concrete, bricks and timber. To his mind it would be of greater assistance in bringing about an Economic recovery than under the systems at present being carried out. Air. Burgess said that ho did not wish to bo parochial in the matter, and he realised that there were possibly other works required in the country that wcrej more important than a new post office. The bridge at Bulls across the Rangitikei River was in poor order, and it would not last another five years at the outside. Why should a new bridge not be erected with the use of the Unemployment Board’s funds? The bridge would have to be re-erected sooner or la tot and there was a good opportunity for the work to be done now. Mr. O’Toole’s motion was carried unanimously. At a later stage of the meeting, Mr, O’Toole also criticised the methods of spending the funds nf the Unemployment Board and claimed that they could be turned into more productive channels —through the continuance of the building subsidy. Mr. O’Toole understood there was a possibility that the board would not reinstate the scheme, considering that the building trade had already had a sufficient impetus. He claimed that such a view point was wrong, and considered that the present was the most opportune time to continue with the subsidy, thereby following up a campaign that had been launched successfuly last Mr. O’Toole produced figures to show that, in a normal period (1929-30), the building trade, employed more people than the freezing, dairying and clothing industries all put, together in New Zealand, and was therefore of definite importance to the country. In 1929-30 the sawmilling, sash and door factories, building and construction had employed 18,693 employees and* I paid wages amounting to £4,324,477, j while the meat freezing, preserving, dairy produce factories and clothing manufacture had employed 18,279 employees and had paid wages totalling £3,498,386. With regard to timber, the State owned 13,582 square miles of forests, valued at £41,264,640, which altogether with its railway revenue totalled £88,57.6,640. Expressed in another way, the New Zealand railways had a vested revenue interest of £3l 3s per acre in every acre of New Zealand forests tributary to the railways for transport. In seconding the motion. Mr. Rankin pointed out that the building industrv used less imported items than any other while it also absorbed local labour and encourage business among many other trades. The motion was carried unanimously. Mr. J. Williams, who also supported the motion, stated that the building industry was a key industry. He understood it was a fact that the trading banks of Australia had been advancing small sums of money during the past 18 months to salaried men without gilt edged securities in order that renovations might be carried out to residences. The banks ascertained whcthci the person applying for a loan was in a fairly good financial position in respect of steady employment before advancing;, the money, usually between £5O anTJ £lOO, which was issued at 5 per cent interest, repayable at 5s a week. Mr. Williams thought that a similar scheme might be workable in New Zealand, foi there were many men who would have renovations carried out to their houses if they were able to do so. The chamber agreed that the mattol should be referred to the secretary nf the Associated Chambers of Commerce.