TO DISAPPEAR

Evening Post, Volume CXXVI, Issue 86, 8 October 1938, Page 11

TO DISAPPEAR

THE EMPLOYMENT FUND

SUBSIDY PROMISE LAPSES

Consequent on its decision to abolish the employment tax as from March 31 of next year, when it proposes to begin the operation of its Social Security Act, the Government has notified the Auckland and Suburban Drainage Board that the subsidy of approximately £200,000 from the Employment Promotion Fund, which it had promised as a contribution towards the cost of a proposed scheme, is to be withdrawn, states today's "New Zealand Herald." In his communication, which was received by the board at its meeting yesterday, the Minister of Labour (the Hon. H. T. Armstrong) stated that ho further revenue would be paid into the fund after March 31. It had therefore been necessary for his Department to review all tentative offers of subsidy in respect of works that would not be completed by that date. As the board's scheme fell within that category it had been decided to treat the offer as having lapsed, so that no finan* cial provision now existed for a subsidy in respect of the scheme. , The secretary-engineer to the board (Mr. H. H. Watkins) explained that the terms of the offer provided for an estimated total subsidy of £200,00Q, to be made available to the board within a period of three years from the commencement of construction. The deputy chairman (Mr. J. A. C. Allum) stated that it was the intention of the chairman (Sir Ernest Davis) to reopen the question of the prosecution of the scheme, which was recently deferred for twelve months, following on the withdrawal of the empowering Bill, which was submitted io Parliament during X the . session. Just closed. Mr. Allum said it was" the desire of the chairman that the new members of the board should make themselves fully acquainted with the details of the proposed scheme by studying the reports supplied to them. MUCH CONCERN EVIDENT. Auckland local bodies are much concerned at the announcement by the Minister that it is necessary to review all tentative offers of subsidy from the fund in respect of works not completed by March 31. A number of Auckland local body works will be uncompleted at that date and additional works have in instances been contemplated. The opinion is held that an official clarifying statement should be made to remove the present position of doubt. The opinion is also held that a large number of men must be discharged unless a subsidy is forthcoming.