SPECIAL FUNDS

Evening Post, Volume CXV, Issue 32, 8 February 1933, Page 8

SPECIAL FUNDS

FOR THE UNEMPLOYED

ASSISTANCE ON LAND

HE. COATES'S SPEECH

On the ground that unemployment was not a short-term problem, but one the solution of -which must be spread over a number of, years, the Minister of Finance (the ' Eight Hon. J. G. Coates) advanced the claim in the House of Representatives yesterday, when moving the second reading of the Small Farms . (Relief of ■ Unemployment) Bill, that the State was justified m calling upon specially raised funds to assist in the permanent absorption of relief workers and their families on the land, i According to the latest registration figures, said Mr. Coates,-the unemployed m New Zealand totalled 67,865, the expectations that, the number would be materially reduced not having been realised. He had come to the considered conclusion that the problem was not one that could be' quickly cleared away. Once that point was fixed, care had to be taken to see that whatever attempted method of solution was adopted worked in with the general capacity of the country itself. It was not possible to borrow money from overseas to carry on public works. The finance was not available. Even if it were, it was a matter of opinion whether in the end . much assistance would be afforded by that means. Unemployment, was not a short-time problem; it was one that would be spread over some years to come. Bearing that in. mind, the Government was entitled to look for new avenues into which the expenditure of the unemployment funds could be turned to the best advantage, and which would represent the most remunerative work to the country as well. The general interests of the country, must be the first consideration, and when the work contemplated was completed, New Zealand would be left in a better position as the result.. ■ . ■ .. .Mr. W.E.. Parry (Labour, Auckland Central): _ Should not land settlement stand on its own feet? Mr. Coates said.that if a period of five or. ten years were fixed and.it was held that, portion of the Unemployment Fund could be utilised to put unemployed men. and their families into business, the Government was justified in saying that certain money should be found for a number of years to establish some of' these men and their families on the land. He had. been charged'with stating that land settlement was the solution- of the unemployment problem. He had / not said that, although he had gone very close to it by'contending-that of all the schemes under consideration land settlement would help to solve the problem as quickly as anything else. NOT TOR UNEMPLOYED ALONE. Referring briefly to the provisions of the Bill, the Minister said the principle of the measure could be applied to those whose capital had been reduced even to ,£IOO., Its terms were not confined to the unemployed alone. Its objective also was to assist a man to utilise the remaining portion of his capital to set himself' up on a piece of land. The Minister referred at length to the possible assistance to the plan of the Bill which Crowns lands could offer, and made it clear at the outset that, according to the reports of the Minister of Lands, the limited' areas remaining in. the hands of the Crown were for the most part- unsuitable for settlement. ■ The cost of developing them to a stage where they'would be 'suitable was also a consideration. The aim iof the legislation was to place as many families as possible on small areas carrying from 18 to 20 cows, and at a cost ranging from £350 to a maximum of £750., The advantage of using for this purpose portions of land already settled was that all the facilities required were in existence and the, element' of time which would be a factor if development had first to be undertaken was removed, as would also be the financial dimculties ' Under' the Bill a landowner would have the opportunity of leasing portion of his holding fdr four years, the lessee having the right of- purchase at the end of 10 years. This would give the owner a chance also to release himself. from some of his present charges, and place him in a better position to work economically the remaining division of the area. From his own knowledge, numbers of farmers were willing to co-operate in the scheme. SECURITY FOR OCCUPIER. In reply to an interjection, the Minister said that in many leases the mortgagee was getting no return whatever, and if he- could be put in the •position of getting-a portion of it—: — Mr. F. Langstone (Labour, Waimarino): From the.Unemployment Fnnd? The Minister:.l will come.toithat in a minute. You may be quite right in having the suspicion that the. mortgagee will say "Here is a" pool from which I may get something. " Continuing, the Minister said the period of four years had been selected for the .first lease, because it was impossible at present to place any definite value on land. v Mr. J.-McCombs' (Labour, Lyttelton): Is it the idba that the land will, sell above its present-day value? Mr.. Coates: It may sell above, or it may not. Mr. McCombs: Another soldier settlement, scheme! Proceeding, the Minister emphasised that, apart from the fact that development of Crown lands could not be expected to provide accelerated land settlement, it would not be wise to make purchases of land at present. Thelease with right of purchase provisions of the Bill would make for security to the new occupier.