TAX AND WORK

Hokitika Guardian, 31 May 1930, Page 8

TAX AND WORK

UNEMPLOYMICNT REPORT

PRO DOS AI ,S D E FENDED

SUSTENANCE AND WAGES,

WELLINGTON, May 20,

“The committee in its recommend ntions is very definite that this system of taxation is the basis of the whole ol its recommendations in this section o its report, and that raids on the Consolidated Fund must not be made.’' said Mr W. D. Hunt replying to critic-< ism of the unemployment committee’s report.

Taking the following three points Mr Hunt defended, and explained tin committee’s decisions, in a paper at the annual meeting of the Economic Society.

(1) The proposal to pay a sustenance allowance or, as the critics sometimes put it, to introduce the dole into New Zealand.

12) The proposal to pay standard wages on relief works.

(3) New taxation proposals, which most of the critics refer to as a proposal to increase taxation

“First, let us consider the proposal for sustenance allowance,” he said “!i the committee’s proposals are properly carried out there will not he many payments without some return in the shape of labour, because payments wil 1 only be made as a Hast resource if the proposed employment board fails to find anything for the unemployed worker to do. The aim of the proposed employment board should be to arrange for as much winter work as possible, and endeavour to promote those lines of industry which require more workin winter than summer. Tf, after doing everything that it can to arrange for winter work there is still a shortacre, relief works will have to be established as they have been in the past. The cost of these relief workswill be paid out of the proposed employment board’s 'fund. The applicant for employment must be prepared to take anv work that is offering. If he is of fored work and refuses to take it fa ml it is common knowledge that many are doing it at present), he will have no claim for sustenance payments. He will on!v have a claim if the hoard fails to find employment of anv kind, and then the pevments arc limited to thirteen weeks in a year which should see him through the winter period.

STANDARD WORK AND PAY

“The only men who will lie paid standard wages under the committee’s recommendations will be competent workers who are able and willing to do a standard day’s work for a standard day’s pay” continued Mr Hunt. “To make sure there is no misunderstanding on the matter, the word competent is put in italics in the board’s report. To deal with the workmen winare not able or willing to do a ful' day’s work, the committee recommends the establishment of training camps, which are really relief works under another name. All incompetent or unskilled unemployed workers will he placed in these training camps, and in these the rates of p,ay will be such as the employment board decides upon from time to time. The only provision as to the rate of payment to these incompetent workers in the committee’s report is that a worker employed in a training camp shall he paid not less than the sustenance rates of benefit provided by the hoard. As these sustenance rates for males of 20 years and upwards are 21s a week, plus family allowance where there is a dependent family, it follows that an incompetent worker in a relief training camp will he paid what he is worth with a minimum of 21s a week if he is a single man. “T am satisfied that the classification of the workers in the manner recommended bv' Hie committee will result in more work being done for a given amount of expenditure than has been done on unemployed relief works in the east.

TAX A TJON I» ROP( >S Al,B

* “Tito recommendations do not mean any increased taxation/’ said Mr FTnat. “All that is proposed is to alter the system of taxation, which / is confidently expected will result in .more efficiency and decreased taxation on the whole.

“Published figures of the Government expenditure for the last year show that the expenditure iby the Government on relief of unemployment was approximately £1,400,000. Ml of this came out of the ‘Consolidated Fund, which is provided by the General taxpayers. “The idea behind the committee’s proposals is that moneys raised to deal with unemployment should he raised in such a wa>- that everyone ill the country should he interested in the matter, and if everyone had to pay a direct payment earmarked for dealing with unemployment the whole peonle of the country would hr, interested in having it dealt with efficiently.

“Under the committee's proposals only one-third of ,the money required to deal with the unemployment question would come out of the Oonsolid Cod Fund. The (remaining twothirds would come from the special tax proposed. Of this remaining two-thirds, five-sevenths would come from the personal tax on everyone, and the remaining two-sevenths bv a fl’l land and income tax with a small contribution from the public todies. The Hat land arid income tax was recommended instead of a graduated one because there is al-