V A NATIONAL PROBLEM.

Waikato Times, Volume 110, Issue 18392, 28 July 1931, Page 11

V A NATIONAL PROBLEM.

. UNEMPLOYMENT REVIEW.

ATTACK ON GOVERNMENT. failure to meet situation. A vigorous indictment of the Government and its inadequate attempts to cope with unemployment was uttered by Mr W. Nash, Labour member for Hull, addressing a large meeting in Liberty Hall. Rosstrcvor Street, last evening. The hall was too small to hold ttiose anxious to attend the meeting. Mr H. Beebe, Labour candidate for Hamilton at the forthcoming election, presided. In opening, Mr Nash congratulated the Hamilton branch of the party in selecting Mr Beebe as the Labour candidate for Hamilton.

After referring to the widespread nature of unemployment throughout, the world, Mr Nash outlined the manner in which the problem had been dealt with in New Zealand in the last few years. In May, 1930, the Labour Department's records showed 3621 registered unemployed. Three months ago the number had risen to 39,720, and since then another 8000 had been added, making a total to-day of over -17,500 men over the age of 20 unemployed. in 1927, after pressure in the House by the Labour members against the Government’s objective of taking the workers’ representatives outside ttie Arbitration Court,, a national industrial conference was set up to discuss problems affecting workers and employers generally. From that conference a small committee was appointed which brought down two tine reports concerning the causes of unemployment, and pointing out what would happen if it were allowed to grow, After the present Government was returned at the general election Mr Veitch, then Minister of Labour, stated that it was unnecessary to go further with the committee’s report, as he knew how 'to deal with unemployment. This, when some of the loading economists and statesmen of the world were -still arguing about the causes and remedies of the problem. At length the position grew worse and the committee was called together. In July last year, following the recommendations of the committee, the Government introduced the Unemployment Bill. This Bill set forth two good things,' firstly, that the responsibility ( of meeting I lie situation was national,: and secondly that provision be made for payment of sustenance lo those! unemployed for whom no work could; be found. These provisos made the | Bill worth while. Some of the clauses! were, however, far from acceptable. In connection with the flat rale levy of 30s per annum on every male over 20, the Labour members used every endeavour to have the levy raised in proportion to income and on a graduated principle as operated in connection with income tax. Then the Labour members suggested a flat rate of 25s up to incomes of £3OO. and from then upwards 1 a- tax’ of Is for every £'loo. These were all rejected and the flat rate levy of 30s was carried. Within one week of the Bill becoming law the Government declared that the responsibility of finding employment i rested not with it but with the Unemployment Board.

Unfair Imposition.

This was a grossly unfair imposition on a newly constituted board. The board's No. 2 'scheme provided some men with some money to buy some food over Christmas. Then the No. 5 scheme, so far the greatest indictment of the Government, was introduced. It was a creditable scheme in! that it '.spread the task of finding work among the local authorities, but d/hen the board came into operation only] 01121 unemployed were registered. The; board reckoned the amount collected by levy, £OOO,OOO, with a subsidy of a similar amount, would give work for io,ooo] yet to-day there were nearly 50,000 unemployed and the Government refused to give the board more money. After great pressure the Government found an extra £SOOO, but Instead of supplementing the funds to ensure that enough money would be provided for relief works, the Government told the Unemployment Board that it had to make the money at its disposal spread over all the unemployed. Thus the rates of relief wages were reduced. The speaker added that the Unemployment Commissioner had told him that the proportion of unemployed unprovided for despite the relief schemes was as great as the number registered when the Unemployment Board started operations—i.e., 6000, for whom neither work nor sustenance can be found. The Labour Party had always contended that if work could not be found sustenance should be paid. Under the present system a qualification to obtain the necessary food, clothing and shelter was willingness to work If work was provided. But it was impossible to find work by searching for it. The organisation of our economic and social system to-day was such that work was not available. All a man could do was apply to the labour bureau where lie had no choice in the type of work given. The Labour Party believed that every man who applied to a bureau should be found work. If work could not be found then It showed that the Government and the whole social system had failed. (Applause.) If in any home more than was needed was provided then there should bo no home in the land where needs went unsatisfied. Mr Nash said he would not blame the Unemployment Board; llic responsibility rested entirely with tho Government. Proposed New Bill. Dealing with the new Bill proposing to levy a flat rate of 20s per annum and .'id in the £ on all Incomes, Mr Nash outlined the effort made by Labour in the House lo have the scheme modified to provide for_ laxation on a graduated scale according to incomes. The administralion of tiie Act was bringing out some of the most grossly unfair procedures operating in Hie country. He riled the instance oi a woman drawing £5 half-yearly from inscribed slock who \vus debarred from getting employment under tho scheme. Hoc small investment had been the result of the Government urging people lo save. Yet any man wllb savings could not participate in Ihe schemes. It meant Unit destitu-

tion must come to every home before relief work was provided. Mr Nash quoted figures to show the large amount of taxable income in the country. Between 1921 and 1930 incomes hail increased by £27,000,000, yet the

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lax paid had been reduced in the same period by £2,500,000. The least the Government could do was to tax those in the best position to -spare it. He claimed that the flat rate levy scarcely affected individuals whose salaries exceeded £IOOO. Women receiving money without earning it would not be taxed under the new Bill, but the earnings of working women would be taxed. 'Nothing could be more iniquitous. The principle of taxation in the past had always been to exempt income earned l-atber than income unearned. Yet the Government had completely twisted the principle so lliat a tax of 3d in the £ would be levied on all earnings.

Mr Nash emphasised the necessity for productive and constructive relief employment instead of useless weedpulling. (Hear, hear.) If the Labour Parly bad the opportunity one of the first tilings it would do would be lo place relief workers on standard rates of pay on productive works. If the Labour Party became the Government the first steps it would take would be to ensure that everybody who required food, clothing and shelter would have them. Then it would apply all the knowledge, skill and experience it had to provide men with a sufficient period of work. The speaker mentioned the following three contributing causes to the extension of unemployment (1) the reduction of workers’ wages (2) the discharge of thousands from the Government services, accentuating the problem, and (3) the introduction of 1233 assisted immigrants over the past year. The first action of the Government had tf reduced purchasing power and stopped confidence. In his 1930 Budget Mr Forbes had made much of the fact that in the previous year the Government had spent £1,400,000 on unemployment relief, on numbers ranging from 2000 to 5000. Ycl with £600,000 in levy coming from the adult males of the country only £1,200,000 was spent last year. If the Government had spent the same amount .it had previously together with the proceeds of the Hat rate levy it would have had over £2,000,000 which would have alleviated a little of t'lfe prevailing poverty.

Immigrants Misled,

“One of the worst features of the matter is the Government’s immigration policy," continued 'Mr Nash. He gave an instance of an immigrant who had been misled into coming to New Zealand and could not even get relief work till he had been here six months'. Yet the Government officers were touring England anid Scotland actually guaranteeing jobs and free passages while thousands were unable to get work In the Dominion. Welfare officers were scouring the homes of Wellington to get people willing to &ive girls work fo provide enough to keep body and soul together. Last year the Government paid for the passages of 505 domestics and guaranteed them jobs. Altogether 1233 immigrants were brought out. "The iniquitous thing is that Ihe Government is using the money, taken from you in the form of taxation to pay for these people coming here," added Mr Nash.

The speaker went on to outline the Labour platform in connection with regulating external trade. it was necessary to find out what New Zealand was capable of producing and then to negotiate with England asking what commodities were the most useful to her, what quantities she wanted and what prices she could pay.

Reciprocal Trading. Then we should take from England what commodities we could without injury to our own produce. . This policy of reciprocal trading was surely better than Ihe present alternative of throwing our produce overseas not knowing what prices would be fetched. The method lie had outlined was preferable to [lie present haphazard method of producing before a market was available.

Mr Nash concluded by emphasising that the Labour Party intended reorganising live economic and social life lo provide a system in which Iho first care would lie Hie young and Hie old and then lo distribute weall.ii in

proportion to services rendered, protiding a person was aide and willing to render those services. The speaker was accorded a hearty vole of Ilianils on resuming his scat. Mr Nn,4i then 'inlroiilueed ‘lion. IM. Fagan M.1..G. and Messrs l\ Fraser and li. MeKcen, M.'sP., who were entliusiasliealiy received.