Main Causes of Unemployment UNSOUND LEGISLATION

Sun (Auckland), Volume 1, Issue 47, 18 May 1927, Page 11

Main Causes of Unemployment

UNSOUND LEGISLATION

CHAMBER OF COMMERCE VIEWS

The saturation point of employment appears now to be in sight. Broadly speaking, employers can afford to employ only the most efficient wageearners, leaving the less capable unemployed. Such is the opinion arrived at by a special committee set up by the Auckland Chamber of Commerce to investigate unemployment problems. The report was placed before yesterday’s meeting of the chamber. The statutory prohibition, except under strictly prescribed conditions regardless of ability, of the acceptance of employment results in the removal of the chief incentive to personal exertion, and the outcome has been low production at a high cost, continues the report. Briefly, the conclusions arrived at by the committee are as follow; The increasing rate of unemployment in the Dominion is mainly due to unsound social, industrial and fiscal legislation, for the placing of which upon the Statute Book all political parties alike must accept responsibilty. Unemployment with ever increasing severity may be expected to recur until the legislation referred to is re-considered.

Unemployment is intensified by the present high rate of taxation. There is need for a longer range planning of public works. The Government could establish closer touch with municipalities and other local bodies with a view to registration of any projected schemes of improvement work such as road, rail and tram extensions, civic improvements and other projects of public character. After registration such schemes could in emergencies of unemployment be expedited in order of urgency. There is need for more careful regulation of the volume of assisted immigration, since the present position is bound to recur with added severity.

Since all parties alike must accept responsibility for placing on the Statute Book the measures contributing to the present position, no political capital can be made out of a disclosure of the views expressed herein, and that therefore it is the duty of the Chamber of Commerce to face the facts and impress their importance upon the Government by every means available.

The report will be presented to the next annual conference of the Associated Chambers of Commerce of ■ New Zealand.