MORE PUBLIC W0RKS

Hawke's Bay Herald-Tribune, Issue 183, 20 August 1937, Page 7

MORE PUBLIC W0RKS

Handling of the Unemployment Problem LOANS WITH0UT POLLS The oxtexisive Public Works programme of thc Governxnent, the "wisdom and tiiueliness of which are being seriously questionod, is now being augmented by strong Government cncouragement of local-body plans for the early prosccution of furthcr undertakings, which are being liberally subsidised out of unemployinent taxatioix funds* (says a statexnent by tho Associated Chambers of Commerce of New Zealand). Under legislation passed last sessioix, the Government empowered local authorities to borrow, without a poll of the ratepayers (unless a poll is demanded by at least five per cent. of ratepayers), for Public Wdrks subsidised out of the Uiieinployment Ihind. This is rctrogressive legislation; one of the first enactments of the 1926 session of Parliament was ihe Local Authorities Empowering (Relief of Uneliiplovment) Act, which . empowered 'local authorities, without taking. a poll of tho ratepayers, to borroAV moneys for the purpose .of providing relief works for unemployed men. In addition to providing direct employment as far as possible, the State further assisted by subsidising expenditure by local authorities. The Government then undertoolc responsibility for the unemployed, and special legislation and taxation were instituted in 1930. In cousequexxce of tho local bodies tlius being rclicved of tho rcs'pousibility of the unemployed, the Act authorisixig local-bpdy loaus Avithout polls was allovycd to lapse in 1933.- To-day thc assistanco of local bodies in littndling uncmployment has been again invokcd, despite these two facts: (I) Whercas State expenditure on unemploynxent in 1932-33, from tho Unemployinent Fund, Public Works, Fund and other nxoneys, was £6,209,000, in 1936;37 it was approximately £12,207,000 — a colossal sum, representing an inereasq of almost 100 per cent.^ (2) Avhereas merchandiso exports brought an income to New Zealand of £37,510,000 in 1932-33, in 1936-37 they brought a record income of £60,235,000 • — an increase of 60 per cent. It is obvious that the methods which aro being followed are not resulting in the solution of the unemployed problem; it apperas that the more moHcy tliat is spent 011 it by public authorities the more needs to be spent. This pilingup of public expenditure means the dissipation of reso-urces, the sacrificing of any prospect of building up reserves, increases in public ' debts, the institution of Public Works which in many cases will be needed as undertakings for the next depression, and the maintenance of — if not increases in — the present excessive Thtes ahd taxes, which restrict the ability of private enterprise to absorb the un-4 employed, and which accentuate thd vory trouble the present lavish public expenditure is designed to cure. It would seem tliat a better plan would be for the Government to call together a national industrial conference, of all interests, to discuas the impediments' which stand in the way of trade, industrv and commerce absorbjng the unemployed. There has been ample evidence, particularly of late, that these inrpedinjents aro Teal; recent industrial legislation, increased costs and a shorter working weok imposed on industry, stringcut rcstrictions on employers and on privats enterprise generally, together with increased taxation, have all gone to accentuate the problem of unemployinent. It is not enough to say that private enterprise is failing in its rosponsibility of absorbing the unemployed, and that the State must thcrefore do the job; progress more substantial, basically sound, and with loss cost to the public purse, is likely to be made if the reasons for the failure of private enterprise in' this regard are fully investigated.