UNEMPLOYMENT.

Manawatu Herald, Volume XLIX, Issue 3762, 3 March 1928, Page 1

UNEMPLOYMENT.

GOVER'NMENT AID. STATEMENT BY FINANCE MINISTER, Dunedin, February 29. Unemployment was one *of the subjects mentioned by the Hon. W. Downie Stewart (Minister of Finance) in his speech here to-night. “Unemployment lias been particularly acute during the last two winters and has even persisted through the summer months, notwitln standing the far-reaching efforts of the Government and the local _bodies to cope with it,” he said. “Among other steps taken by the Government to absorb the unemployed were, firstly, to practically suspend its immigration policy in order than an influx of immigrants should not be competing in a depressed labour market; secondly, to maintain and extend its public works and road policy so as to absorb as many men as possible; thirdly, to authorise by legislation local bodies to raise loans for unemployment, and, fourthly, to subsidise moneys expended by local bodies in order to assist them in coping with the problem.

“The Dominion is at present employing far more men on public works than our normal programme should require, and, in my view it is impossible to maintain the present high figure for any length of time without creating further difficulties. About ten years ago we were employing on the public works about 3,000 men and this number has gradually risen year by year until last year we employed, at the peak, over 12,000. This number is abnormally large. It is well-known that unemployment relief works are not economic and do not yield full, value for the money spent.

“It is easy to say that the Government have plenty of railway, irrigation, and drainage works and afforestation schemes that need development, and therefore that the Government can absorb all the unemployed by pushing on with these schemes. It is true that as the unemployed have to be maintained, in any case, they may as well be employed in useful work. But these great public works involve great public loans, and public loans involve a large and growing interest bill. That interest bill must be met by the taxpayer. The Government is trustee for the taxpayer to see that he gets value for the money spent. It is also the experience of all Governments that so long as relief works are provided to an unlimited extent it is a matter of extreme difficulty to get the unemployed to seek private employment. “Critics continually demand that the Government should evolve some complete scheme which will at all times absorb all who want work, They .say the present methods are haphazard and piecemeal and insufficient. But our experience and the experience of all other countries shows that unless relief works are kept down to a minimum, and the wages kept at a standard less attractive than normal wages in private employment men leave private work to come on public works and their numbers tend to grow and become permanent. Those who say a change of Government will solve the problem have to explain why unemployment is far more chronic and on a much larger scale undei the Labour Government in Australia than the Reform Government in I New Zealand.”