WELLINGTON NEWS

Hokitika Guardian, 15 April 1931, Page 8

WELLINGTON NEWS

AYOHKDKSS AND MONEYLESS. (Australian Press Association.) ■ AVELLINGTON, April 13 At the end of the iirsi quarter oi the year, the authorities are urmigni laee to face with the fact tluu, wniio tue number of unemployed has increased, tlie levy has decreased, a cl how to make the latter fit the lormer on a basis of 12s (id for married men and 9s for single men, is a problem bard to solve. At the end ol Alareb tie number of unemployed was over 38,000, and one shudders to think wluff L.ie n,miner w ill be at the end oi June when work will be precarious. 'There are about 400,000 breadwinners in the Dominion, and if JO,OOO are unemployed, which is 12) per cent., it will go nard with the remainder who will he requisitioned to support those out of work. It is quite obvious fliat tho authorities have not been able to diagnose the unemloyment prooleni. It was turned over to an unemployment Committee to consider and. although the members of that Committee approached the problem with the best of intentions, they were individually and collectively incompetent to deal with so ohstruse a subject. They started off with the blunder in assuming that unemployment is a social and not an economic nrohlein. The lame, the half, and tin* blind the degenerates and tiff* mentally afflicted are rightly the care ol the body politic, but not so the able bodied worker. The Unemployment Committee made the blunder and it was perpetuated in the Unemployment Act. Since the worker has a claim on society, according fo the Unemployment Committee on c > cannot wonder that workers believe and insist upon society (paying the so-called award wage for any work done by any oi the unemployed, no matter how inefficient he may he, or how valueless th 0 work may he. Th P unemployed Problem is dev'loning in a way that promises to cause sensational happenings. The flat rate levy of 30s per year is now found to he totally inadequate to finance unemployed. Some paid the levy in one lump sum, most of the others have paid each quarter, some are relieved from payment through sheer inability (,o pay, but there aye many who could pay liie levy, hut are dodging payment. No doubt the defaulters could he made to pay, hut what would be the cost to society in enforcing payment of 7s (jd ? The Court costs would absorb more than the amount. We have to lace the fact, the unemployment js fending to increase and funds are tending to decrease.

Jt is difficult to se t . in prospect any change in tiff, economic conditions of the Dominion to warrant the belief mat unemployment will decrease during the next lour or live months, if

l .ere is an increase, as seems inevitable, and the number approximates iu tbe levy, even n everyone paid up, would not be sufficient to keep such an army of unemployed under the various schemes of tiff* Unemployment Board, and on the reduced scale of wages.. Assuming that at the end of June we have 50,(000 out of work, of whom says 20,000 are married men and oujwOu single men, to provide these unemployed with just °“e day’s work a week on the 12s 6d and 9s per day wage scale, would cost lor three months over .£300,000, and where is the money coming from 'i It means that the levy must be increased or the wage scale reduced.

IDo Midget for the past year has closed with a deficit, and the Budget fur tlie current year promises to show a balance on the wrong side. If we wish to maintain our credit abroad, and fortunately our credit stands higher than the Commonwealth, the Finance Minister must take all the necessary steps to make the Budget of 1931-82 balance. The deficit for the past year, and the estimates deficit for the current year, must be provided for. This means increased taxation and strict economy. The former is certain, but the latter is not quite so certain. Of course there is always a loan to fall hack upon, but borrowing in London is not going to be an easy matter for the Dominion. However, if a loan is to be raised, it must be floated at, the end of this month or early in May, for that is about the best time for capital issues in London. If balancing the Budget involves increased t a xation, an increase in the levy will be the lust straw on the camel’s back. Unless something unforseen happens, if js very probable that wages on relief works must he further reduced, and it is a question whether wages generally, including award wages, are not reduced more than the ten per cent, already in operation in many cases. The duty of the Legislature just now would appear to be to endeavour t° brinit about a reduction in the cost of living. There are still many of the necessaries of life Unit are artificnlly high.