UNEMPLOYMENT

Rotorua Morning Post, Volume 2, Issue 345, 5 October 1932, Page 5

UNEMPLOYMENT

("Post" Speeial Commissioner.)

EOARD'S INCGME DECREASE IN FIGURES SHOULD ASSIST POSITlbN NO TAXATION INCREASE

Wellington, Tuesday. "Unemployment unforturiately continues," stated the Prime Minister in dealing with this subject in the course of his budget speech, "to be the most intractable and distressing prob'lem with which we are faced. The fiirtHer fall during the year in the value of exports by reducing the geheral . spending power of the community and thus lessening the demand for labour has undoubtedly accentuated the trouble and made the Government's task in providing relief a particularly difficult one. After traversing the arrangemerits made to meet the position,* the Minister estimated tlie income of the Unemployment Board np to March 31 next at £3,967,000, made up as fo'llows: Levy, £400,000; wages tax, £2,--400,000; tax on other incomes £1;000,000, suhsidy from Consolidated Fund, £167,000. The exjienditure of the board to August 81, had amounted to £1,526,000, and the balance available for the last six months of the year was estimated at £2,932,000, which was slightly more than half of the estimated revenue. On the face of it, this appeared satisfactory, but from the present figures, it was considered that the amount stxll available would not be sufficieht to provide for cohtinuance of expenditure at the present rate for the balance of the year. It seemed likely, however, that the peak of the trouble had now been reached, and with the commencement of seasonal work and the indications of hetter times ahead, it was expeeted that the number of men out of employment would decrease. Under these circumstanices, therefore, it was not proposed, to increase the taxation imposed for unemployment purpdses. It was considered that to do so would merely serve to check recovery and aceentuate the, trouhle. In addition to the, activities financed out of unemployment taxation, arrangements had also been made to borrow up to £500,000 for capital expenditure under what was generally known as "the small .farm plan."