Abuse of Sustenance System

Manawatu Times, Volume 62, Issue 23, 28 January 1937, Page 7

Abuse of Sustenance System

Not Widespread, Says Department CLOSE CHECK KEPT ON EARNINGS. Per Press Association. WELLINGTON, Last Night. ‘ ‘ There is no suggestion of widespread abuse of the sustenance system by unemployed persons or men partially employed, although instances of deliberate fraud or wrongful receipt of relief pay through ignorance are frequently detected in various parts of the country,” stated the Labour Department to-day in response to inquiries to determine to what extent the sustenance system is being defrauded. The Department said that, apart from, the recent New Plymouth case; where 20 out of 30 casual workers employed unloading a ship were found guilty of making a false declaration of their earning, there had been only one in* stance where concerted action had been taken to defraud the Department. This occurred in the South Island a few months ago and 12 men, all working for the same employer, were prosecuted and convicted. A close check was kept on the outside earnings of men in receipt of sustenance and when a case of wrongful drawing of sustenance money was detected the I Department fully investigated it and I decided whether or not it was wilful. Where a case was proved wilful the degree of seriousness was considered and the Department then decided whether toi prosecute under the Employment Promotion Act or Crimes Act. The system of checking earnings b.Y sustenance men was as effective as could possibly be devised. Employers were working with the Department by submitting -returns of wages pai<L They realised the importance of preventing impositions on tho Employment! Fund and were co-operating in safeguarding it.