UNEMPLOYMENT

Dominion, Volume 14, Issue 176, 21 April 1921, Page 6

UNEMPLOYMENT

REQUEST FOR GOVERNMENT ACTION

ACTING-PRIME MINISTER’S REPLY THE FINANCIAL POSITION A request for Government action to check unemployment was made by a deputation which interviewed the Act-ing-Prime Minister (Sir Francis Bell) and the Minister of Labour (Hon. G. J. Anderson) yesterday. The deputation represented the Returned Solidiers’ Association and the Central Progress League, and included half a dozen men who were in need of employment. Sir Francis Bell, in reply, made an important statement regarding Dominion finance. Mr. G. Mitchell, M.P., who headed the deputation, said that unemployment was on the increase among returned soldiers and other sections of workers, and he felt that the time had come for the Government to say definitely what policy was going to be pursued in dealing with the problem. The situation could not be called alarming just now, but there was evidence that lit would become worse during the winter months. He himself had got into touch with eighty unemployed men through a single advertisement in the newspapers, 32 of them being returned soldiers. The Prime Minister had said some time ago. that he could place thousands of men on public works.

Sir Francis Boll: How long ago was that? Mr. Mitchell: “That was during tho first session of the present Parliament, in 1920.” There were in Wellington at least 200 men out of work. About 100 men had been put off by the Public Works Department in the district and other State Departments had been discharging men. No form of charity was wanted. The men ought to be placed in useful and profitable employment,, and the 200 men now in need of work ought not to be kept waiting until their number had increased to 1000. A hungry man was a dangerous man. Plenty of work required to be done in New Zealand, such as hydro-electric development, road and railway construction, and building. Wellingto.i required a big retaining wall for the proposed reclamation, and the City Council had an authorised schedule of works capable of absorbing much labour if funds could be made available. Mr. Mitchell emphasised the claims of unemployed discharged soldiers. Many of tho men out of work to-day were soldiers. The Returned Soldiers’ Association suggested that unfit partially trained men should have their training completed, and should be granted subsistence during the period of training. Then there were unskilled workers who were unfit for heavy manual work. They would have to be provided with suitable employment. Unfit clerical workers, storemen, and so forth were more difficult to place. It was useless for them to go to private employers, who were already dismissing hands. The suggestion of the RS.A. was that places should be provided for these returned men in the Government service by discharging (I) men who had reached superannuation age; (2) fit young men who had not been to the wax, and who could find work elsewhere, and (3) girls whoso families were in good financial circumstances. With regard to fit returned men, the partially trained men ought to have their training completed. The unskilled men would have to accept employment on public works until the times improved. In conclusion Mr. Mitchell urged that the Government ought to take action at once.

Unemployment Among Returned Men. Mr. J. Pow said there was a considerable amount of unemployment among returned soldiers. The R.S.A. was going to insist that these men must get work. Sir Francis Bell indicated that "insist” was not the right word. Mr. Pow proceeded to say that a certain returned soldier, a fine young fellow who neither drank nor smoke, ( had been dismissed from employment in Christchurch and had come to Wellington in search of work. He had advertised in the newspapers without, result. He went to the Repatriation Office and was practically told to go out and hunt for " Sir Francis Bell: Do you Relieve that the Department said that to him?

Mr. Pow: I do. Sir Francis Bell: Well, I don t believe it at all. , . Mr. Pow added that he brought the man to see a Ministerial secretary, who referred him to the Repatriation Department, which referred him back to the local Repatriation Office, where he had started from. The associations scheme for the absorption of the unemployed soldiers had been outlined by Mr. Mitchell. It was a fact that some returned soldiers had been discharged by Government Departments to make room for newly-arrived immigrants. A married returned soldier with two children had been put off at Taihape in favour ot an unmarried immigrant. Mr. R. A. Wright. M.P., said he was aware that the unemployment difficulty was causing great anxiety to the Government. The trouble was being experienced all over the world. Men were being discharged by private employers in Wellington. He mentioned works that required attention, including the Wellington railway station, and urged that the time was not opportune for immigration The men already in the count ry had’first claim on employment. the Government could not. allow a large number of men to remain out of employment. . . ~ “A Fair Thing.”

Mr R J. F. Aldrich, secretary of the Returned Soldiers’ Association, said that the Acting-Prime Minister had queried the right of the association to say that it was going to “insist. Sir Francis Bell: It is not a word that should bo addressed to the Government, as if we were some body adverse to you. Mr. Aldrich: I think the time has passed when the returned soldiers should be expected to beg. Sir Francis Bell: Who is accusing you ° f Alr. Aldrich: "Unless we can use the other word we must lie bogging. I think it is a fair thing that we should insist that returned soldiers should not be out of work.” He proceeded to say that he had been assured by the Public Service Commissioner that the Departments had been instructed to retain returned soldiers. But the men were still being put out. , Mr. Anderson: How many men have been put out? Mr. Aldrich said the association could quote twenty concrete cases for the past month The temporary employees of the government were being “sacrificed on the altar of economy.” The Departments were retrenching. The cause of the whole trouble was stated to be finance, but on the other band there was the fact that the last loan had nod been fully suliscribed and the Government had not enforced the compulsory provisions. He thought rhe Departments should be asked to reconsider the dismissals of returned soldiers. The R.S-A. wished to help the Departments. Sir Francis Bell: We welcome your assistance. We don’t, welcome your insistence. Mr. Aldrich eaid the association was trying to educate, public opinion concerning the responsibility of the country to the returned soldier, and unless it got the right lead from the Government it had little hope of success with citizens generally. Mr. Anderson: Do you say that the State has not done a fair thing to the soldiers ? .

Mr. Aldrich: I don’t say that. I don't think It. has done too much, I say that the position has become so serious now that we must ask the Government to make jobs for these men, as private employers are doing. Mr. A. P. Whatman said that hundreds of men were out. of employment in the country, owing to the dismissal of farm hands. The Government ought not to wait until the main roads were congested with men carrying swags. Mr. Whatman suggested that farmers who had any good years to look back upon ought to make an effort to retain their men over the bad times. Reasonable men would be willing to accept reduced wages this year in view of the collapse of the markets. Farm hands, who were fed and housed, could accept reduced wages without hardship. Mr.' A. L. Harper, for the Welfare League, said that the trouble was not acute yet, but it was likely to bo acute very shortly. He thought that the Government would be wise to tackle tho problem at an early stage. Mr. Mitchell added that he was satisfied the Mangahao works were fully manned. He was fully aware that the sympathy of tho Government was with the returned soldiers. The Minister’s Reply. Sir Francis 8011, in reply, said that he wished first to clear up some of the points that had been mentioned. The Governhient some time ago- had suspended immigration except in tho cases of persons whose passages were paid by relatives or employers, and who were guaranteed work in this country. It had not been possible to stop immediately the arrival of British discharged soldiers who were being assisted to settle in the Dominions by the Britsih Government, and he did not think that the New Zealand returned soldiers would have wished the Government to close the doors against their old comrades in arms. He had been disappointed to hear adverse comment on the work of the Repatriation Board.

Mr. Pow: We fully recognise that tlio Repatriation Board has done all in its power. We spoke of the Repatriation Office.

Sir Francis Bell said he could not accept any distinction between the board and its officers. The officers had done the work, and very many returned soldiers had stated their warm appreciation of what had been done for them. The Repatriation Board was still in possession of certain funds to be used for repatriation work. This money was not available for any other purpose. He did not believe that there would be any serious trouble about finding employment for returned soldiers. He wished to say that before he proceeded to refer to the financial position generally.

Elderly Public Servants. Then it had been suggested that elderly men, possibly with families to support, should be retired from the Public Service to make room for returned soldiers. Tho Government was not going to do that. He did not think many of the returned soldiers would ask the Government fo do it. The elderly men might be entitled Io superannuation, but it appeared that they could not live on their superannuation any better than, the partially incapacitated soldiers could live on their pensions. But the promise of the Government to stand by the men who had returned from the war was as binding as when it was first made. Then there was the question of the right of the de; putation to "insist.” The Ministers were the agents of the people, and no section of the people could force the Ministers to take action that the Ministers did not think was right. The .Ministers did their best for all the people. A powerful body of voters had more than once told him through deputations that if tjie Government did not do certain things it would be turned out of office. He had replied that the people concerned would be within their righto in turning the Government out of office, but that while the Government remained in office it would do what it thought was right.

All Possible Arrangements Made. "So far as it is possible,' arrangements have been made, and are being made, in this country to prevent distreta and to provide work,” continued .Sir Francis Bell. "I am not here to tell you what the details are to be. But I can tell you that the suggestion that what little money we have got should be handed out to local bodies for their expenditure is not regarded favourably by the Government. It would be impossible with the limited funds wo have to provide local bodies with money for local works. We have not got anything like enough money for their purposes. . . . The Minister of Public Works and the Minister of Labour have been engaged in anxiously con. sidering the arrangements for the immediate future, and in making what wo think will be due provision as far as our means will allow.” Mr. Mitchell: The Public Works Department is sacking men off works now." Sir Francis Beli. "The Department is necessarily striking off tho smaller works with the object of further concentration. I cannot go further into it. It would be improper for me to do so.” The Government, added Sir Francis Bell, was a committee of the people, and it was doing its best. It had to be trusted.

Financial Situation. The Acting-Prime Minister proceeded to review the financial situation. He said that the Dominion had two fluids —tho Public Works Fund, containing loan money used for capital expenditure, and the Consolidated Fund, containing the ordinary revenue. TKe Government in ordinary years could supplement the Public Works Fund by transfers from the Consolidated Fund surpluses. But the Government in the present year had'io face a falling revenue, and the surplus in the Consolidated Fund must be retained for Fne purpose of paying interest on the public debt, keeping the Civil servants employed, and carrying on the business of the country. It was absolutely impossible at present for the Government to raise money on Treasury bills. The Government was the only body that had any money, and it was as impossible for the Government .to float 'Treasury bills as it was for the Wellington City Council to borrow money in the city. The money was not here, and it could not be obtained. “The surplus revenue carried over in the Consolidated Fund is required to supplement the revenue of this year and ’enable us to pay our way,’’ continued Sir Francis Bell. “That leaves us in this position: that the Public Works Fund cannot be supplemented out of revenue except in tho gravest possible crisis. The Public Works Fund may be supplemented by 'borrowing from other sources, but we aro living hand to mouth in that respect. Money can he obtained at certain times from institutions whoso business it is to accumulate funds, but it is .a matter of hand to mouth, and no person "ban undertake contracts on behalf of tho Government for huge amounts and be satisfied that, he can meet tho liability out of the Public Works Fund under present conditions. I am not going to say anything more about it. The idea that the Government is in possession of a large sum of money which it can expend on public works in all directions is quite untrue. That the expenditure of money on public works is required to prevent poverty and hardship in the Dominion is as clear to the Government as it is to you. I have tried io tell you what the difficulties of the GovernmbnT arc. They arc as serious and as urgent as any Government ever had to face. We shall face them like men, and you will have to understand that we are your agents and the agents of the people.” The Acting-Prime Minister added that lie regarded the returned soldiers as entitled to special treatment, and there were moneys available for them. The returned soldiers were not likely to suffer the same degree of difficulty or hardship as other people had to face.

"No Need yet for Alarm.” The Minister of Labour (Bon. G. J. Anderson) endorsed what Sir Francis Bell had said. He said that the Government had been considering, the position for some months past. Official returns showed that the amount of unemployment was not yet-large. It was increasing, but there was no need for alarm yet. If the position became serious he thought that the arrangements that had been made would enable the Government to handle it. The Minister suggested that evervbody ought to assist in getting over the difficult, months. If a man who had money in the bank was out of work it was as much his duty to assist himself as it was the duty of farmers who had money to retain their employees. The men with nothing and the men with families were those the Government had to look after. Mr. Mitchell: What about the men who are out of employment now? Some of them have been out for several weeks. Mr. Whatman: Hundreds of them. Sir Francis Bell: Nonsense. Air Anderson: Can you give me names? —r Mitchell: I can give you tho mifiies of fifty or sixty. Some of them are not fit for public works. We know that the position is not acute yet, but those out of work now cannot wait until it becomes acute. There are men who have n °Mr ing Anderson: Are there many who have nothing at all? Mr Mitchell: There are a good many. People are not provident. After a little general discussion the deputation thanked the Ministers and witKSrew.