H.—35.

THE UNEMPLOYMENT FUND. Accompanying this report is an audited statement of the receipts and payments of the Unemployment Fund for the year ended 31st March, 1933. Summarized, this statement shows the following position, the corresponding figures for previous years being shown for the purpose of comparison:—

In addition to the sum of £424,426 shown above as cash in the Fund at the 31st March last, there was a sum of £85,115 tax collected by the Post Office and not yet paid over at that date. There was thus a total of £509,541 cash available. Deducting from this figure a sum of £174,800 sundry creditors at the 31st March, 1933, there was in the Unemployment Fund at Ist April, 1933, a sum of approximately £334,740, making, with the estimated revenue of £4,300,000, a total of £4,634,740 available for unemployment relief during the year ending 31st March, 1934. In the year ended on the 31st March, 1933, payments under various relief schemes were as follows: — £ Farming schemes .. .. .. .. .. .. 277,764 Building scheme .. .. .. .. .. .. 49,627 Gold-prospecting schemes .. .. .. .. .. 70,206 Camp schemes .. .. .. .. .. .. .. 180,483 Distribution of food, clothing, or rations orders .. .. .. 58,667 Sustenance payments when work could not be provided .. .. 12,960 Scheme No. 5 .. .. .. .. .. .. .. 2,937,991 It will be noted that the payments in respect to administration expenses totalled £100,643. Adding to this amount a sum of £6,500, representing cost of collection of unemployment levy allowed to the Post and Telegraph Department, there was a total payment of £107,143 on account of administration expenses. This sum represents 2-82 per cent, of the total payments of £3,795,040 from the Fund. The percentage of administration payments to total payments in the year 1931-32 was 1-66 per cent. The total payments do not, however, provide a satisfactory basis for comparing the cost of administration year by year, since the payments for a particular year include items of expenditure actually incurred in a previous year, while the whole year's expenditure will not be shown in the payments, since at the end of the year there will be commitments due and unpaid. This position is particularly marked in comparing the payments for the years 1931-32 and 1932-33. At the end of the financial year 1931-32 there was an unusually large number of accounts for administration outstanding, and these were paid in the following year, with the result that, while the actual payments for 1931-32 were £37,347 only, those for 1932-33 were £100,643. The actual expenditure in these years when unpaid accounts at the end of each year are included was : 1931-32, £55,015 ; 1932-33, £95,165. The latter figures, representing actual expenditure, form a more satisfactory basis for comparing costs of administration. Percentage costs extracted on this basis show the comparative position for the years 1931-32 and 1932-33 as follows: — 1931-32. 1932-33. (1) Total expenditure, including unpaid creditors at £ £ 31st March .. .. .. .. 2,268,197 3,839,807 Plus cost of collection of levy retained by Post Office 4,000 6,500 £2,272,197 £3,846,307 (2) Amount of administration expenses included in total cost shown above .. .. .. £55,015 £95,165 Per Cent. Per Cent. (3) Administration expenses as percentage of total cost 2-42 2-47

2

Year ended i Year ended Year ended 31st March, 1 3] st March, 31st March, 1931.* j 1932. 1933. £ £ £ Cash in fund at beginning of year .. .. .. .. 69,115 184,967 Receipts. Levy .. .. .. .. .. .. 229,000 538,503 429,004 Wages-tax.. .. .. .. .. .. .. 490,053 2,471,028 Tax on income other than salary or wages .. .. .. 220,245 1,120,404 Subsidy from Consolidated Fund .. .. .. 159,247 1,118,753 Miscellaneous .. .. .. .. .. 9 2,530 7,563 388,256 2,439,199 4,212,966 Payments. 1 Grants under section 18, Unemployment Act, 1930 .. 313,209 2,200,545 3,594,637 Sustenance under section 20, Unemployment Act, 1930 .. .. .. 12,960 Loans under section 18, Unemployment Act, 1930 .. .. 16,340 21,633 Purchases of food, &c., under section 14, Unemployment .. .. 58,667 Amendment Act, 1932 Administration expenses .. .. .. .. 5,932 , 37,347 100,643 j 319,141 2,254,232 3,788,540 ; 1 Cash in fund at end of year .. .. .. .. 69,115 184,967 424,426 * Period 11th October, 1930, to 31st March, 1931.