LOCAL UNEMPLOYMENT.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5147, 4 July 1927, Page 2

LOCAL UNEMPLOYMENT.

MONEY FOR RELIEF SANCTIONED. MAYOR’S SUCCESSFUL EFFORTS. A special meeting of the Paeroa Borough Council Was held on Saturday night. His Worship the Mayor (Mr W. Marshall) presiding over Crs. E. Edwards, P. E, Brcnan, F. E. Flatt, J. W. Silcock, H. J. Hare, E. A, Porritt, J. Pinder, W. Turner, and the town clerk (Mr W, C. Alexander).

The only correspondence before- the meeting was the following letter from the chairman of the Local Government Loans Board (Mr R. E. Hayes), who is also Secretary of the Treasury:

“I hereby notify you that the Local Government Loans Board has considered the application of the Paeroa Borough Council for sanction to a loan of £2OOO, to be known as the Relief of Unemployment Loan, for the purpose of road formation, and has sanctioned the application subject to the following conditions: (1) That the term for which the loan is borrowed shall not exceed 15 years ; (2) that the rgte of interest payable in respect of the said loan shall not exceed £6 per cent, per annum; (3) the local authority shall before borrowing the said sum or any part thereof make provision for the repayment thereof by establishing a sinking fund of £5 per cent, per annum calculated on the. amount raised ; and (4) that the Borough Council undertakes to adequately maintain the roads concerned.” The Mayor stated that the letter indicated the result of his second trip to Wellington in connection with the proposed unemployment relief lean of £2OOO, and he was pleased to say that the difficulties which arose when Cr. Flatt and he had made the first trip had been completely over-

come. The Mayor then submitted the fol-

lowing report:— “The consent of the Local Government Loans Board in writing has been obtained subject to certain conditions as set out, and I recommend that they be accepted by the council and the necessary steps taken forthwith to enable the council to put in hand the work of salvaging the main streets and provide work for the unemployed.

“The position is that the- ratepayers are committed to a loan of £2OOO for this purpose, which will carry a Government subsidy of 50 per cent, of the cost ef labour at the rat®-of 12s a day for married man and 9s a day for single men, the wa.ges being estimated at £lOOO. BENEFIT TO RATEPAYERS. “The benefit accruing to ratepayers is that the main streets will be saved from destruction, and reconstruction will be definitely put in hand and a third of the cost found by the Government as a measure of relief for local unemployment. I think that under these conditions the council is justified in committing the ratepayers without taking a boll, as the matter is one of extreme urgency, both for the provision of work and the preservation of the main streets. “1 think, also, that the council ought never to use such a. power as this except in most extreme circumstances. The distressing lack of employment which, I am sorry to say, has been all too clearly revealed to me during the past few weeks, constituted a condition which simply had to be met. ASSISTANCE BY GOVERNMENT. “In this connection I wish to say that the most sympathetic consideration towartls providing local relief has been shown by the Prime Minister (Rt. Hon. J. G. Coates') and the Minister of Public Works (Hon. K, S. Williams). Counting the Interviews held with Cr. Flatt on the first visit to Wellington- and the. occasion of my second trip I have seen the Prime Minister three times and the Minister of Public Works six or seven times, and the time taken by those interviews was most willingly and even eagerly given by the Ministers. It would be wrong not to acknowledge the fact and say that everything possible was done by the Government to remove technical or machinery difficulties and facilitate to consummation the preliminary arrangements. AN UNSATISFACTORY PHASE. “Difficulty, however, was experienced with the Civil Service officers, who are the experts on the .Local Government Loans Board, and I think one phase in particular was unsatisfactory, but due primarily to the fact that the officers are probably overloaded with work, and that the. negotiations were very hurried. If the Loans Board is going to really help local bodies and serious friction is to be avoided, it will be necessary to have a qualified officer available for interviews who is not otherwise overburdened with work. However, Cr. Flatt and I are convinced that the board is laying down sound general principles with regard to reading , loans. If the board is properly supported and its efforts backed up by an obvious ccirollgry, namely, increased revenue from motor vehicles generally, a considerable improvement to the economic position of New Zealand should be effected. MR SAMUEL’S EFFORTS. “We are deeply indebted to Mr A. M. Samuel, member for Ohinemiiri, for his valuable assistance in this matter. IMPORTANCE OF WORK. “With regard to the work which it is proposed to do out of this loan money, I wish to say that it is doubtful if the ratepayers have any conception of its importance or its real value to the town. I can only say heic for the benefit of any ratepayers who may value my opinion that if the corporation’s affairs were my own private business I should be satisfied that a good deal had been arranged in every way, apart from, all humanitarian considerations. The whole roading scheme, which was placed before the council on June IL has been carefullj’ examined by the Dominion’s best experts, and if 1 could tell you the expressions- obtained I am certain that ratepayers would nt least be convinced that the scheme was on sound lines. I would |

like, however, purely for this purpose aloue to say that the report was read carefully by the engineer to the Main Highways Board, who is a highly qualified engineer, and who is devoting his energies entirely to main highways. I asked him for his candid criticism, and he replied that in the absence of local knowledge he could not criticise one line or sentence in any way, and the report contained an observance of fundamental principles to a rare extent. This is mentioned knowing that it is immodest, but solely for the purpose of information for the council and ratepayers. Nor was this by any means the only evidence which I have as proof that the proposal is technically and economically sound, and I hope sincerely, in the best interests of the town, that the second portion of the work in some way will be finally undertaken, and I feel certain that the experience we are having with the new piece of macadam street hear the Paeroa Hotel is proof to everyone that with modern traffic sealing in some .form or other is positively essential. “Owing to the high sinking fund which is required it would, however, be impossible to proceed with the whole scheme unless additional revenue is obtainable from the main highways fund and other motor taxation channels. I am going further into the question to see if certain modifications could be effected with a view to so reducing the cost as to balance, if possible, the higher sinking fund rate, and I hope to be able to present a further report to the next meeting. Supposing that it proved impossible to do so, or that the proposed loan was not carried, I wish to state to councillors that I have been able to advise the Engi-neer-in-Chief, Public Works Department, that the money now being raised will be spent on a permanent improvement to the streets, and that it should be possible to adequately maintain streets in such improved condition. It is. not wise for this to obtain ; neither would it be in the best interests of ratepayers; but it would be vastly better than doing nothing, and would stand alone as a reasonably sound proposal. “I have also to report that the Minister of Public Works has agreed to find all the wages required (as subsidy in advance) for the first few weeks up to the sum of £409, to enable the council to start woVk immediately.”

'ln reply to Cr. Silcock the Mayor said that the ratepayers would be < asked to find £2OOO, and the Government contribution was £lOOO. A rate of about %d would meet the requirements

The adoption of the report was moved by the Mayor. In seconding, Cr. Edwards extended the hearty congratulations of the councillors and burgesses to the Mayor and Cr. Flatt. The speaker said he desired to particularly congratulate His Worship and thflnk him sincerely for his efforts and tenacity of purpose in bringing to a successful conclusion the difficult matter with the Government officials. The Mayor briefly acknowledged the eulogistic reference to himself, and said that although the battle had been a. difficult one the results had been most gratifying, and he was deeply appreciative of the help and assistance that had been given him. He hoped the councillors would cooperate and be loyal and assist in carrying out the conditions. There was bound to be heart-burning and a certain amount of dissatisfaction over the rate of relief wages, but an employee on relief wages should understand that he was justified in taking a job on better wages if he could, and that it was to be- understood tliat any sum to be paid in wages on relief work above the rate laid down by the Government would have to come out of the 'ratepayers’ pockets. PASSING OF RESOLUTIONS.

The following resolutions to enable the work to be undertaken at once were then passed by the council: — “That in pursuance and exercise of the powers vested in it in that behalf by the Local Authorities Empowering (Relief of Unemployment) Act, 1926, and its amendments, the Local Bodies Loans Act, 1926, and all other Acts and authorities it thereunto enabling the Paeroa Borough Council hereby re-spilves as follows:

“That in view of the unemployment at present existing in the Borough of Paeroa» the Paeroa Borough Council resolved to borrow thei sum of £2OOO, to be known as the Relief of Unemployment Loan, for the purpose of reconstruction work on the continuation of main highways in the borough. That this resolution Be advertised in the Hauraki*- Plains Gazette twice, and public notice given that it will be submitted for confirmation at a meeting to be held at the Borough Chambers, Normanby Road, on July 14, 1927, at 7.30 p.m. “That authority be given to the. Finance Committee to negotiate for raising the loan money for a term c>f 15 years at six per cent.

“That authority be issued to im? mediately employ as many men as can be conveniently engaged subject to the following conditions: (a) That for the present only local men b e employed ; (b) that immediate fireference be given to local married, men ; (c) that as early as possible married men from Paeroa who are engaged on relief works away shall bet offered work in the borough (d) that the-re-lief works rate of wages basis be 12s for married men and 9s for single men,” SERVICES ACKNOWLEDGED. On the motion of the Mayor it was t resolved: “That this council placer on record and convey to Mr A. M. Samuel, M.P. for Ohrnemuri, its best thanks and appreciation of the valuable assistance he has given in the difficult matter of providing work for the unemployed in Paeroa, Mr Bamffel . having proved a valuable ally and a ; most sympathetic friend to thttee in * need."

Tn seconding, Cr. Flatt said that a great deal of praise was due to Mr ’ Samuel for the considerable assist- ’ ance that he had given the council. A brief discussion followed on the details in connection with the engaging of men and the laying out of the work to be done. - " \ ' ■