WELLINGTON NEWS

Hokitika Guardian, 17 May 1928, Page 4

WELLINGTON NEWS

UNEMPLOYMENT. (Special to “ Guardian.”) WELLINGTON, May 14. At various times during the past month or two we liarc been made aware that there were a number of men out of employment, but with the near approach of winter and the close of seasonal operations, there has been an augmentation to the ranks of the unemployed. It is nothing for a few men to drop out of work through seasonal factors, but in Lhc past it seems that they have been able fill up the off-time with work of sorts. They were apparently unable to do so last, year an I they are not likely to do so now. That the unemployed problem is becoming serious is indicated by the fact that last week a deputation organised by the Wellington District Council of tlie Alliance of Labour waited upon tb - Acting-Minister for Labour to urge the Government to do something permanent to meet unemployment. The spokesman of the deputation stated that unemployment was worse at present than it was twelve months ago. and unless something were done immediately there would he from I.jOO to dOOli unemployed in Wellington wo:' six weeks. He declared that the Government had failed to lace the unemployed problem, and contended that a married man could not exist with toe relief rate of Ids per day. How much of all this is lact and how much fiction it is hard to say. but it must be remembered now and at a! tifiles that leaders of the Labour Parte are not all altruists, on tin l coutiTir 1 their interests mostly are concerned with themselves. If they could got the Government to make the rebel rate of wages the same as the Arbitration Court award rates they would score heavily, and a great many ol them would romp into Parliament at the next election. The Acting--Minister for Labour indicated that a permanent scheme for solving the unemployed problem was impossible. The Government will do exactly what it did last year in the payment of subsidies to local bodies for unemployment relief works, but there was no prospect of the rebel rates of 12s for married and Os' lor single men being revised.

Although there, was some exaggeration in what was said there is no doubt that quite a large number of men arc unemployed, and that the number will increase as the winter advances. Unoiiiployinent with a healthy trade balance, and satisfactory banking returns furnishes a very difficult, problem. A' far as outside trade is concerned we are about £10,000,000 better off than we were a year ago, and the last quarterly banking figures showed that do posits have expanded and that the banks are flush of loan funds. The position is anomalous and calls lor close investigation. Our large trade balance has not apparently been tree. The depression of the previous year left many in the community with heavy liabilities, and the trade balance lias helped in part to liquidate this. Those who have received payment from their debtors are acting with extreme caution anil have in numerous cases placed their funds on deposit- with institutions rather than run any risks. In hnel there is a lack of confidence. Not withstanding good prices and an increased output primary producers arc deficient in funds for developing properties, and the little they have to spend does not go very far.

The Arbitration Court, with its fixed award rates of wages, is largely re sponsible for unemployment. There is no flexibility in wage rates which are practically the same to-day as they were in the boom year of 1925. Goods and services are as much wanted to day as they were last year, or two years ago, the question of price is the hindrance. When a merchant finds that he is overstocked ill a line, or that there is no sale for certain goods at the price demanded, ho promptly takes the only course open to him and cuts the prices of goods. Services cannot be treated differently. Cut the cost of services and more will be requiring such .si wires.