UNEMPLOYMENT.

Otago Witness, Issue 4031, 16 June 1931, Page 18

UNEMPLOYMENT.

BOARD’S FUNDS EXHAUSTED. SUSPENSION OF No. 5 SCHEME. (Urgent Memorandum, to All Newspapers.) WELLINGTON, June 11. The following statement has been issued to-day by the Prime Minister (Mr G. W. Forbes) “ A special meeting of Cabinet was called yesterday to deal with a resolution submitted by the Unemployment Board setting out that at the present rate of expenditure the unemployment fund would be exhausted by the end of next week, and that the Unemployment Board was faced with no other alternative than to advise the Minister of Finance that unless and until further funds could be made available the operation of Scheme No. 5 must be suspended. Cabinet, after careful consideration of the resolution and the position of the Unemployment Fund, decided that the operation of the Unemployment Board’s Scheme No. 5 should be suspended on June 20, 1931, and the following statement has been issued in connection therewith:—

“ The funds of the Unemployment Board are provided under the Unemployment Act of last year. They coneist solely of the unemployment levy payments, with a subsidy of £ for £ of expenditure from the Consolidated Fund. There was no indication at the time the legislation was passed that the fund would be subjected to such enormous demands as have eventuated. Consequently it has proved quite inadequate to provide for each of the 13 weeks in the quarter even the small amount of relief that is at present being granted. The funds of the board have been depleted to the point where it is impossible to carry on with Scheme No. 5 beyond June 20, as the Minister of Finance has no authority to provide further

moneys for the fund without the sanction of Parliament. “ The maximum income of the board, inclusive of subsidy from the Consolidated Fund, is £24,000 per week. The outgoings, even on the closelyrationed basis followed, are approximately £40,000 per week. A temporary suspension of Scheme No. 5 was made on April 11, when the basis of rationing was reduced and the qualifications for relief revised so that only those genuine unemployed wage-earners with little or no resources were declared eligible for relief; but, notwithstanding the large numbers eliminated by this revision and reclassification, the ever-increasing registrations caused by employers all over the Dominion discharging hands, and by those who had previously been endeavouring to carry on without obtaining relief being ultimately forced to apply for work, have made the total eligible for relief even greater than before the suspension. Until, however, this revision and reclassification was complete, and a few weeks’ experience of the actual expenditure on resumption of Scheme No. 5 was obtained, it was impossible to ascertain just what the actual outgoings were. Now that the figures have become available, it is realised that, with an approximate expenditure of £40,000 per week, a stoppage is inevitable until further funds are available.

“ The proceeds of the levy due on June 1 will be required to meet commitments to the date of suspension, and until Parliament has met and decided what is to be done to meet the position, Cabinet Has decided that there is no option but to suspend operations. No further commitments will be entered into under any other of the board’s schemes, although existing commitments will be met.

“The Government earnestly appeals to all local bodies, local unemployment committees, churches, and all charitable organisations, to use their utmost endeavour so to organise the resources

(private or otherwise) of their districts as to ensure, at least, that no one will go without food or clothing or shelter. It is obvious that a united effort is necessary to take care of cases of distress, and to cope with the situation until Parliament -is .able to deal with the position.”

MEAT FOR DISTRIBUTION ISSUE TO HOSPITAL BOARDS. AUCKLAND, June 11. A ration of meat is being added to the orders being issued this week by the Auckland Hospital and Charitable Aid Board to applicants for outdoor relief. This has been made possible by the purchase some time ago by the Government of about 20,500 carcasses of mutton at prices considerably below those ruling today. Most of this meat was bought in the Hawke’s Bay district almost three months ago when, owing to the shortage of feed and the depressed state of the market, prices were phenomenally low. The meat was held in cool store, and now that the winter has arrived the Government has advised the various hospital boards that it will be available to supplement the food orders which the boards customarily issue. It is understood that the Auckland Board will receive upwards of 6000 carcasses for distribution. This will be received in parcels of about 500 carcasses as required. TROUBLE WITH RELIEF GANG FOUR SUMMARILY DISMISSED. ASHBURTON. June 11. Disciplinary measures were taken by the foreman oi a relief gang at Dromore. The men took over an hour’s “smoko,” and four were summarily dismissed, whereupon 20 others ceased work, fruitlessly endeavouring to get the rest to do likewise. The agitators refused to give their names. The foreman overcame the difficulty by taking those of the workers. POSITION IN WELLINGTON NO CORPORATION FUNDS AVAILABLE. WELLINGTON, June 13. The Mayor (Mr T. C. A. Hislop) stated to-day that the carrying on of the present city relief works, giving employ-

ment to over 1800 men, depends on the continuance of the No. 5 scheme, and if that scheme is to be suspended on June 20 the men will be compelled to apply to the Hospital and Charitable Aid Board as the corporation has no funds available. The only possible way by which the men could be given work was by the No. 5 scheme.

The Mayor also stressed the fact that it the No. 5 scheme should be continued some of the Government restrictions should be removed to enable work reasonably necessary at the present time to be undertaken instead of work which is more or less unnecessary. DEPUTATION TO PRIME MINISTER REDUCTION IN INTEREST RATES URGED. After attending a meeting of the executive of the Municipal Association at Wellington, the Mayor (Mr R. S. Black) returned to Dunedin on Friday night. Mr Black stated on Saturday morning that whilst in Wellington he had been one of a deputation that had waited on the Prime Minister (Mr G. W. Forbes) with a request that the unengaged under the No. 5 scheme, instead of receiving work for only three weeks out of every four, should be employed during the fourth week as well. It came as a shock to the members of a deputation when they were Informed that the scheme was to be suspended from June 20. The deputation had also suggested that the rate of interest should be reduce! to relieve municipal undertakings and business generally. Mr Forbes indicated that he had had several discussions with the banks on this question; Mr Black said he considered that the question should be tackled right away, as he felt it would be a big factor in helping r<) remove the The deputation felt that, though Mr Forbes gave no indication of anything that would be done he was sympathetic with them in their endeavour to settle the unemployment question and to have the interest rates reduced. Mr Black stated that he had also interviewed the Minister of Health (Mr A. J. Stallworthy) regarding the positions of hospital boards. He had received figures which showed that the Otago Board had a very small amount on its estimates. This year the local board had some £ll,OOO for outdoor relief, whereas last year it expended the sum of £14,000 on outdoor relief. He noted that Wellington had over-spent its allocation by £4OOO, and that its estimate for this year was £33,000, as compared with £ll,OOO for Otago. The estimate of the North Canterbury Board for outdoor relief was £20,000, and that of Auckland £30,000. It looked, commented Mr Black, as if the Otago Board was modest in the amount it asked for the relief of those in disdress.