UNEMPLOYMENT FUND

Dominion, Volume 28, Issue 103, 25 January 1935, Page 12

UNEMPLOYMENT FUND

Board’s Finances in Sound Position

RECEIPTS FROM TAXATION

The advisability of having an adequate balance in the Unemployment Fund at the close of the present financial year to meet the norma! increase in expenditure during next winter, was mentioned by the acting-Minister of Employment, Hon. S. G. Small, when reviewing yesterday the position of the fund as at December 31, 11)34. The finances of the board were in a satisfactory position, Mr. Smith said, the cas-h balance in the fund at that date being £1,478,000. Against this balance, he added, there had to be set off revenue .eutived in advance estimated at approximately £150,000, and expenditure incurred to December 31, but not yet brought to charge, estimated at £753 000. This balance bad to -be increased fy approximately £lOO,OOO, being revenue actually received to December 31 but not paid over to the Treasury by the collecting departments. The estimated actual surplus in the fund at Deeem' er 31 was therefore £084,000. In addition to outstanding accounts of £753.1'00 at December 31, there were imprests outstanding, representing vouchers paid but not yet charged to the various accounts, of £488,000. The Minister explained tli'L the estimated surplus of £684,000 represented an increase of approximately £249,000 over the balance at the commencement of the financial year. This increase might be attributed to the buoyancy of the revenue, and to the fact that the numbers who had become a ciiarge on the fund had shown an appreciable reduction over the corresponding period of last year. Reduction in Unemployed. “It is very pleasing to report,” Mr. Smith said, “that the revenue from unemployment taxation is well up to expectations. At the commencement of the financial year it was estimated that the revenue would reach £4,768,000, being £341,000 in excess of the actual receipts for the previous year. In view of the fact that the numbers seeking relief from the fund showed an appreciable reduction, it was decided to reduce taxation to lOd. in the £ as from October 1, 1934, and to grant exemption to persons under twenty years of age. In addition, certain other exemptions were provided, the effect of which will not be felt until next financial year. “The revised estimate, on the basis of reduced taxation for half the year, placed the revenue at £4,346,000. The actual receipts for the nine months ending December 31, 1934, amounted to £3,635,408. As previously explained, it is estimated that approximately £150,000 of this amount represents revenue received in advance, but even after allowing for this it appears that the estimate of £4.346,000 will be slightly exceeded. While the improve ment in the revenue can to a certain extent be attributed to the operation of improved methods of collection of wages tax, there is .no doubt that, the chief factor is the steady improvement in industry generally." -, Review of Allocations. The Minister stated that in considering the amount of the balance, it had to be remembered that taxation for the balance of the year would be received at the reduced rate of lOd. in the £ and that in addition the recent review of the scheme 5 allocation.; would involve the board in additional expenditure estimated on present registrations at £175,000 per annum. It. would be appreciated that it was as much in the interests of the unemployed as of the taxpayers that a sufficient balance should be maintained in tho fund. “Th eeffect of the special exemptions and the reduction in taxation will considerably reduce the money available for unemployment relief during the next financial year,” concluded the Minister. “For this reason it >s essential that there should be adequate balance in the fund at the close of the present financial year to meet the normal increase in expenditure during the next winter. The balance in the fund at December 31 would constitute on the present rat eof weekly expenditure. a reserve sufficient for about nine weeks' allocations.” f