UNEMPLOYMENT

Hokitika Guardian, 23 March 1932, Page 6

UNEMPLOYMENT

GOVERNMENT PROPOSALS.

STATEMENT BY HON, J. G. COATES

(By Telegraph.—Per Press Association.)

WELLINGTON, March 23. The full text of the Hon. J. G. Coates’ statement is as follows: "For the information of members, and of the country itself, I desire t° ro " view the position in respect to unemployment, and to outline some further courses of action, calculated to pio\icle an opportunity for those out of employment. In so doing, I recognise two basic considerations are necessary to keep in mind, the effect- ol the burdens of taxation, for it is obvious that the more the public is taxed, the greater will be the decrease in spending ability, which brings its on n reactions in industry. My endeavour, therefore, is to keep a reasonable ana equitable balance, and thereby avoid adding to the- troubles with which no are dealing. On the other hand, it is my opinion that we must not merely say reasonable relief should be granted to those in distress, but must take every step within our power to ensure that no citizen who is prepared to work, shall go short of the minimum necessities to keep together body and soul, of himseh and of his dependents. In viewing the past few months, wo are able to see some cause ior satisfaction. The rate of increase in tlie number of registered unemployed has at least been arrested in the meantime. The total stood at 51,408 on October 5, but- it has been reduced by 7,000, and has now been fairly constant at about 45,000 for several weeks.”

“The figure on March 14 was 44.309. At this period a year ago the steeply rising figures of unemployment showed no slackening whatever. .'Registrations, in fact, increased from 6.000 in October to- 31,000 in March, last year.

The total placements of men in subsidised employment on farms was 17,000, and this represents some real progress.

In moving the men over the fence, every care has been taken to see that these men have not- displaced regular employees. The number actually on farms, as additionil labour, to-day, is 7,000. In October last the figures wore 2,000, and this effort to assist at once the unemployed and the man on the land, appeals to us as being a thoroughly sound dash for it. Upon the farmer and the unemployed, the burden of this depression has fallen the most heavily, and our intention therefore is to extend to the utmost the means of placing men on existing farms. To some further steps proposed in this direction, I shall presently refer.

About 1,000 single men have been moved from congested city areas into camps for highway construction These camps are in the nature of an experiment on the part of the Main Highways Board, and Unemployment Board and they are how to bp judged satisfactory. The principle will he further extended, hut with Jtlie difference that the purpose will not ho confined to road work. A start has already been made in establishing camps for married men, n enable them to engage in more useful work than they could he offered in the cities.

The marked revival in gold prospecting is due in part to the assistance given by the Unemployment Board, cooperating with the Mines Department. With gold over £6 per ounce as compared with £3/17/10 a year ago, mamworkings which were not worth while have now become payable, and most of the men out prospecting and fossicking, are now able to earn a living without assistance, and some have done quite well. Some hundreds of those men in necessitous circumstances have been given a start from unemployment funds. The unemployment fund will be recouped to the extent. of 10 per cent, of all gold non.

Much of Scheme 5 work has been of limited value, but a special investigation lias shown that under Scheme 5. some 10,000 men are now engaged in work of a definitely productive nature, such as land drainage and improvement.

The Unemployment Board has managed to live within its income. This has been achieved only by rigid economy, necessary owing to the limited funds at its disposal, but there are many deson ing citizens whom the Board lie been able to assist at all. Scheme 4A will continue and as many men as farmers are prepared to tal:°, will he made available under this scheme, if satisfactory arrangement : can be entered into with the farmer. When the farmer has no accommodation available for a man and cannot provide it, arrangements will be made to provide a but or material lo erect one.

Although tin: total registered unemployed has fallen in past 5 months there ha-s fallen in the past five months there -is one group in which the numbers have not fallen, and that is the married men in the cities. While the total of. single men registered as unemployed in Hie four main cities has fallen from 9.000 to 7,000, a drop of 23 per cent., the number of unemployed married men in the cities was 11,500 in Oetobei- and is still 11,200 in March, a negligible drop of 2 per cent. This brings me t ll refer to the first measures which we propose for the further relief of married men.

We turn our attention to land and proposed a scheme of rural allotments. Under this- new plan,, sections ot Irom five to iten acres will he acquired hinny form of tenure which is most suitable fo the case, and a cottage <>t the public works type will he elected thereon. Allotments will he distributed throughout the rural districts, and the

occupant of a section will work some of the time for himself on his place in providing his own sustenance and part of the time for a nearby farmer or anyone in the locality who can employ him. It is recognised that relief workers who are thus moved out will not immediately be able to earn tin independent livelihood. Some part of the present relief allowance must therefore lie continued. Again, there tire many •caAps where land owners could make available' to the worker a portion of his land and the occupant could .work in the same way-that is to say, part of the time on his allotment and part for -the farmers in the district.

The Government appeals to all landowners and farmers to help in this time of stress. If they will respond, and I am sure they will, an impetus will be given to production. Men will be found employment, and farmers will have labour, and at least some of tho men we hope will later become permanent -settlers.

,As typical of what can be done and something that has -been done, we can picture a farmer agreeing to take a relief worker -and his family on to his place with cottage provided, the -farmer -setting aside a’ few acres and providing a cow or two, pigs and -such farm products as be can, while the relief workoi agrees to work on stated terms on the farm.

This matter of placing unemployed on rural .allotments has been caretully considered. We are well aware of its difficulties, and of its limitations, ft is not wholly a land settlement scheme but rather an emergency measure to move -s<ime thousands of persons into an environment with opportunities tor the- individual. At the very least it will provide ,shelter until the storm has passed over, and is certainly preferable to keeping families in congested areas with little hope or opportunity. Transport is amongst incidental prob. 1,00! s raised by a scheme of this ebaiaoter. The Railway Board have been consulted and I am pleased to sav that they have agreed to cut charges and to co-operate in a helpful way. The Government have agreed to r-ecommenu Parliament to provide a fund in tre nature of capital expenditure to help (to finance this scheme. With this plan to which I may sav T attach the greatest importance I shall deal more fully when I speak on the Bill. Meanwhile I refer to some other work that is in hand.

Land drainage offers a very valuable addition to the works to be undertaken. There are -many thousand's of acres of good land which only requires drainage, it s carrying capacity being restricted owing to its waterlogged condition. Drainage will enable this land to be made- completely productive and ‘•provide for greatly inciroased production and ultimately for closer settlement. Tidal fiat reclamation also offers scope for considerable development. There may be legal difficulties in this matter, but these will be overcome by legislation, Some, works are. in band ond when completed will bo immediately made available to those requiring small farms.

Reclamation of virgin land proposals are being finalised, embracing the development of Crown Lands by -suitable men. Proposals for laud settlement not directly undertaken by it he Government will he sympathetically considered and encouraged.

Road work, particularly tho metalling of backblock road-s, will enable us to give employment to a considerable number of men, in providing all weather access which tho settlers so badly need. Gold Prospecting.—The considerable increase in the value of gold will enable many areas of gold bearing country which could not be worked at a profit at the old price of gold, to be now worked and giv-e a reasonable return. After consultation with the Minister of Minos I am pleased to say provision is being made ior the sei•vices of supervisors, additional to those already available. 1 look forward to a. great expansion in this connection.*

Apart from these ventures along remedial lines, some further changes are being made in connection with relie! administration. Scheme 5 has in the past- been used almost- exclusively lor the employment of men in the towns and cities. A commencement has already been made- to apply this scheme to country work, with the difference that tile work is continuous, anil there are (no standown period*. R is ”s----sential that work in the country should be carried on continuously. The policy L to direct labour into rural districts. Hospital Boards—it lines been the practice for Hospital Boards to provide sustenance for registered unemployed, particularly in stand down periods. Waste is’ caused by duplication and overlapping, when the same able bodies unemployed are assisted from. It means that any relief it may ho possible to give to registered unemployed, apart from wages, will lie given from the Unemployment Fund, while Hospital Boards will he responsible for relief to those whose distress is due lo causes, other than unemployment, until such time ns the payment for relief w brought under one control. It, is impossible to • say |iow much unemployment is costing the country. It will lie. seen. from what I have said, that- hospital hoards will be relieved of a considerable dram on their resources, and, as a result of the proposed change in the method and organisation, hospital and charitable aid boards should be able to Tenure their demand's for levies on Jora! bodies. An increase in the income ot tin* unemployment Iliad is imperative. The present income is £2,500,000 a year while the outgoings, at the rale of about 050,000 weekly, amount also to 02.500,000 a year. The cost cannot, lie much reduced as long ns the unemployed number some 50,000 fas i ii ( .y do when men in subsidised cm ployment on farms, and gold prospectors are included.”)