DOMINION PARLIAMENT

Waikato Times, Volume 111, Issue 18622, 28 April 1932, Page 8

DOMINION PARLIAMENT

NEW RELIEF SCHEME. BEST UNDER CIRCUMSTANCES. DEFENCE BY MINISTER. WELLINGTON, Wednesday. The Minister in charge of Unemployment, the Rt. Hon. J. G. Coates, in the House of Representatives to-day in answering Labour criticism of the new scale of relief wages announced last week said: “We are providing reasonable relief in accordance with the country's capacity.” The following table was cited -by the Leader of the Opposition, Mr H. E. Holland, to contrast the earnings of relief workers under the old and under the new schedule, figures under the new arrangement being given in parentheses:—

Single man, 6 days’ work in month (8 days), £2 14s a month in wages (£3 a month) ; married man with no children, 9 days (10 days), £5 12s 6d (£5) ; married man with one child, 9 days (12 days), £5 12s Gd (£6); married man with two children, 9 days (14 days), £5 12s 6d (£7); married man with three or more children, 12 days (1G days), £7 10s (£8). Mr Holland claimed that a married man with two children was practically the only one who was as well off under tiie new scheme as under the old, as the extra £1 7s Gd he earned would just about offset the hospital board assistance he would have obtained in the stand-down week. A single man got six shillings a month more for two extra days’ work, but the hospital hoard’s allowance for rations would no longer be available to him. A married man without children worked one day more for 12s 6d less, and also lost his hospital board assistance. A married man with one child got 7s Gd more for three more days’ work, so that he did extra work for 2s 6d a day, and lost his hospital board assistance. A married man with three or more children received 10s more for four more days’ work and lost his hospital board assistance.

It was stated that the old rates of pay were 9s a day for single men and 12s 6d for a married man. The new rates were on a basis of 7s bd for single men and 10s for married men. Better Than Abroad. Referring to Mr Holland’s criticism of the new schedule, Mr Coates said New Zealand’s effort in assisting the unemployed was infinitely greater than anything attempted in any other country. Mr Coates said the following weekly rates were paid in Victoria under a Labour Government: Individual resiling with strangers or relatives other than parents and unable to be supported, ss; man and wife, 8s Gd; man with one child, 10s; man with two children, 11s Gd; man with three children, 13s; man with four children, 14s Gd; man with five children, lGs; man with six children, 17s Gd; man with seven children, 19s; man with eight or more children, 20s Gd. A Labour Member: That is sustenance. Mr Coates: That is so. No work is done. Continuing, Mr Coates said in New South Wales there was a system of relief orders, but no cash. A man was entitled to earn up to a certain maximum and to receive relief orders in addition. A single man earning up to £1 a week was entitled to a relief order of 5s lOd, but if he earned only 5s a week or even nothing, the relief order was still only of the same amount. The scale of relief orders went as far as 37s for a man with eight or more children. A Labour Member: If he works, what does he get? Mr Coates: He is entitled to earn up to £5 a week in certain cases, and still get sustenance to the amount I have mentioned, but if he is not in work, he does'not get any more.

Mr Coates asked whether the Labour Party wanted-section 20 of the Unemployment Act, 1930, regarding sustenance, to operate _ on the scale ■there provided. He noticed that members were not insisting on that. Mr W. E. Parry (Labour —Auckland Central) : I am insisting on that in lieu of work.

Mr Coates:.ls it the Labour Party’s policy that they will give work to every man at £4 a week? I have their acknowledgments that that if so. In the most prosperous times, the average rate of wages earned by the ‘casual labourer in New Zealand throughout the year was £2 10s a week, yet we have' the policy enunciated that every man should now get £4 a week. I leave the public to judge how we can do that when the national income has dropped from £150,000,000 to £90,000,000. We have our backs to the wall. We want the money to go round fairly, but this is not the time for any hasty, ill-considered schemes. My advice to the unemployed is that they will get proper consideration when thev accept the beft the Government can offer. It is my duty, and that of the Government, to do the best possible to place the men's services to tiie best advantage, not only in their own interests, but also in the interests of the country. Mr Coates said a single man was paid 18s a week under the old scheme and he would now get 13s, but the average weekly payments were actually its 3d under the old scheme. Altering Organisation. “The organisation affecting the registered unemployed is being completely altered," said Mr Coates, and every 'man will become I lie concern of the Government and of the Unemployment Board." Although a married man with no children was entitled to earn £1 17s 6d under the old scheme, the actual payments showed he earned an average of only £1 2s over four weeks. Similar remarks applied to married men with one and two children. Mr Coates said apart from the stand-down week there were 12,000 men who got nt l relict at all. If men could not he given work, the board would see that they were fed. Mr K. .tones (Labour —Dunedin South): Sustenance? Mr Coates: Food, and, perhaps, a few shillings. The organisation in Auckland, l hope, will be ready in eight days; it may take a few days longer. In'other centres I know it will take a little longer. However, the organisation is being tested ami will shortly be ready to go into action in Wellington and ' Christchurch . Altogether, we hope to have l i to 22 boroughs under the scheme shortly. Placing IVlen On Land. Mr Coates said the placing of additional men on the land only applied to registered unemployed. They would he placed on farms until they were able to carry on. Men on farms milking a few cows would be in a better position, than unemployed in the

city. An unemployed man in the city would be a thousand times better olf were he in the country districts.

Mr Coates said the women’s organisation had stated they were able to handle the situation as far as girls were concerned. The requests they made in respect to relief for unemployed women would receive the attention of the Unemployment Board. Provided a man’s family was looked after, he would be wise to go into the country, if induced to do so by the several schemes of land settlement, small as they might be. Better inducements could be offered to the unemployed, and he hoped shortly _ to move them into the country districts in satisfactory numbers. There were thousands of applications for pieces of land.

To talk about slave camps was to make statements that were almost unforgivable. The great majority of men at Aka Aka had expressed satisfaction at the camp there. It was intended to put in drying rooms where these camps had been established. The Government would take every reasonable step to see that the unemployed were provided for. Money payments were not a wage, but a relief. INTEREST AND RENT. ADDITIONAL AMENDMENTS. MADE TO ADJUSTMENT BILL. WIDENING THE SCOPE. WELLINGTON, Wednesday. Numerous amendments to the section of the National Expenditure Adjustment Bill dealing with the reduction of interest and rent were introduced in the House of Representatives this evening. Company debentures and debentures issued by other bodies corporate will be included in the term mortgage, but it is proposed to remove these debentures from part four of the bill imposing the stamp duty. The effect is a 20 per cent reduction in interest, instead of 10 per cent stamp duty. Another amendment brings within the term interest or rent any sum payable on mortgage or lease as a premium bonus or other like payment. Tenancies of offices and rooms are brought into the operation of this section of the bill. The new clause provides that where it is impossible to fix the rate of interest or rent payable on January 1, 1930, for the purposes of the 20 per cent reduction, the basis shall be fixed on a hypothetical rate, which would have been payable on that date If the contract had been in force. This hypothetical rate is applied not only to contracts that have been entered Into after January, 1930, but to certain long-term contracts which were in force prior to January 1925. The underlying reason is that in the period between January, 1925, and January 1, 1930. rates of interest and rent may in general be regarded as having been higher than before or since that period, and as having remained comparatively stable. The rate for January 1, 1930, having been arrived at by agreement of parties or by arbitration, or failing this by the Court, the reduction, if any, to be made in the current rate of interest or rent is ascertained as follows: (1) A reduction of 20 per centum is made from the rate for January 1, 1930; (2) if the current rate exceeds the residue after such deduction has been made, the current rate is to be reduced to that residue and will be the rate chargeable for a period of three years, commencing on April 1, 1932; (3) in no case is the current rate to be reduced by more than 20 ner cent. This provision Is necessary to meet exceptional cases where the current rate, may exceed the rate on January 1, 1930. It is not intended that this part of the hilt shall apply to interest or rent, which, although becoming due after April 1. is payable in respect of the period before that date.

Where contracts remain in force until April, 1, 1935, the rates current before the passing of the bill will then automatically revive.

Excess of Payment.

The right- of action to recover payments made in excess of reduced interest and rent rates are limited by a further clause. Under the bill as introduced, a mortgagor or tenant who made any payment in excess of what the law required, whether such payment were made pursuant to an agreement or otherwise, would be entitled at any time within six years to sue for and recover such excess payment as a debt It is now proposed that proceedings for recovery must be commenced within three months after payment in excess has heen made.

Power is given to the State Advances Department and others doing similar business to make rebates of interest for prompt payment.

The clause in the bill as first drafted stipulating that rent must not be reduced below 5 per cent, of the capital value of farming land and 7 per cent, in other cases has been dropped, because of the practical difficulties of determining a suitable capital value without incurring great expense to the parties particularly concerned. The necessity for the clause disappears to a largo extent with the adoption of rates appropriate to January 1. 1930, as the basis on which the reductions are to he marie.

A new clause exempts from the operation of this part of the hill all mortgages of chattels securing repayment of moneys that are repayable on demand and all mortgages and tenancies entered into on or after April 1 last. Another new clause is to reduce by 20 per cent, for the years 1932 to 1935 the rate of dividend payable by companies registered under the Companies Act, 1908. on cumulative preference shares. In no case, however, is ihe rate of dividend to be reduced by operation of the clause below 5 per cent, per annum of the nominal value of the shares affected. A right of appeal to the Supreme Court from the proposed statutory reduction is given to shareholders affected thereby and any order of the Court on such ap peal is made binding on the company with respect io all shareholders of the class affected.

Finally, the Supreme Court is enabled to vary any will or settlement, or any order for variation of a will made under the Family Protection Act, 1008, where provision is made for payment of an annuity or other periodical payment out of the proceeds of rent or interest. Unless some such power is given other beneficiaries under the will, settlement or order may be adversely and disproportionately affected. PAYMENT OF RATES. NATIVE MINISTER'S POSITION. MEMBER'S ACCUSATION. WELLINGTON, Wednesday. In tiie Mouse of Representatives this evening Mr K. S. Williams (Government — Bay of Plenty when discussing the clause in the Local Elections (Continued 111 no.*!. i'.aliunu.i