THE COUNCIL'S SUBSIDY

Rotorua Morning Post, Volume 2, Issue 565, 23 June 1933, Page 4

THE COUNCIL'S SUBSIDY

| In eommon with a number of I other local bodies in the Dominion* the Rotorua Borough Council has recognised that some amelioration is necessary in the condition of the r^lief workers under its jurisdiction and has decided to subsidise/ the wages paid to a number of the men over a period of four months. It may justly be contended that in view of the heavy unemployment taxation imposed upon the country in general it should not be necessary for local bodies to provide further subsidies to bring the unemployed up to a reasonable subsistence level. It is, after all, the taxpayers who subscribe the rates which provide these subsidies and at the same time meet their share of the general unemployment taxation. In principle, the provision of subsidies by | local bodies is relieving the Unemployment Board of a share of the responsibility which it has been delegated to carry and for which it administers an annual income now in excess of four million pounds sterling. But argument along these lines does not alter the fact that very many of our fellow citizens are in urgent need of assistance and that on the present lines of administration they can expect little or nothing beyond their present pittance from the Unemployment Board. The council has been forced to recognise that what cannot be cured must be endured and as far as its limited funds will permit, has endeavoured to provide

a small increase in the weekly earnings of fifty of the most deserving cases among relief workers who are ' ratepayers of the borough. It may 'be felt that some injustice is being done nonratepayers through this differentiation, but it must be remembered that the funds which are being expended are those of the ratepayers of the borough and that ratepayers have the first call upon them. The council has also avoided placing any further burden upon the ratepayers to provide the extra money required, by employing funds set aside for unemployment relief and in anticipation of a position like the present. There is no doubt that the present rate of wages paid by the Unemployment Board, and particularly in the case of married men with a family, is verging very closely upon the starvation or semi-starvation level. The subsidy of eight shillings a week which the council will be able to provide for a number of these men during the next four months is not a great deal but it will very possibly make a very great differehce to a number of unfortunate families. As the mayor pointed out, the psychological effect of the subsidy jwill be vafuable and in view of past experience there is ever# jpossibility that the borough will be well repaid by the better work given by the men eoncerned. The additional benefit which • will accrue to the business people of the town through the distribution of this further sum of money should not be'overlooked. The council has made an exceli lent gesture which should not