TOO MANY MEN ON PUBLIC WORKS

Sun (Auckland), Volume I, Issue 292, 1 March 1928, Page 1

TOO MANY MEN ON PUBLIC WORKS

NATIONAL TREASURER’S WARNING

IMPOSSIBLE TO MAINTAIN RECORD TOTAL OF 12,000

(Special to THE SUN.) DUNEDIN, To-day. IN the opinion of the Minister of Finance, the Dominion is employing far more men on public works than its normal programme requires. It is impossible, the Hon. W. Downie Stewart declared here last evening, to maintain the present high figure for any length of time without creating further difficulties.

DISCUSSING most ot the troubles that afflict the country, the Minister said, in the course of his long address, that unemployment had been particularly acute during the last two winters and has even persisted through the summer months, notwithstanding the far-reaching efforts of the Government and the local bodies to cope with it. Among other steps taken by the Government to absorb the unemployed were, firstly, practically to suspend its immigration policy in order that an influx of immigrants should not be competing in a depressed labour market; secondly, to maintain and extend its public works and road policy so as to absorb as many men as possible; thirdly, to luthorise, by legislation, local bodies to raise loans for unemployment, and, fourthly, to subsidise moneys expended by local bodies in order to assist them in coping with the problem. About ten years ago we were employing on the public works about 3,000 men, and this number has gradually risen year by year until last year we employed, at the peak, over 12,000. This number was abnormally large. "It is well known that unemployment relief works are not economic,” continued Mr. Stewart, "and do not yield full value for the money spent. Because of this fact we have tried as far as possible to meet the cost of unemployment out of revenue rather than out of loan money. “But It must be remembered that unemployment is a still more serious problem in Australia, and if the New Zealand Government agrees to provide employment for all who are unemployed at the present rate of wages it is only a question of time before we will have a large Influx of unemployed from Australia seeking work in New Zealand. It is also quite clear that the local bodies cannot go on raising large loans each year to cope w th unemployment.”

It is easy to say that the Government hat plenty of railways, Irrigation. and drainage work and afforestation schemes that need development, and therefore that the Government can absorb all the unemployed by pushing on with these schemes. It is true that as the unemployed have to be maintained, in any case, they

may as well be employed in useful work. But these great public works | involve great public loans. Public loans involve a large and growing interest bill. That interest bill must be i met by the taxpayer. The Government is trustee for the taxpayer to i see that he gets value for the money spent. It is also the experience of all Governments that so long as relief works are provided to an unlimited extent it is a matter of extreme difficulty to get the unemployed to seek private employment. HIGH TARIFF NOT A REMEDY “Another remedy that is frequently suggested Is that we should afford much higher protection to secondary industries by means of a high tariff. But in my view a high tariff is no remedy for unemployment, as can be seen in Australia and America at the present time, where unemployment is far more rampant than in New Zealand. Other critics say that if the Government reduced taxation this would stimulate industry and provide enterprise for unemployment. With this principle I agree, but reduction in taxation does not produce immediate results, and the problem of unemployment is immediate and urgent. Moreover, unemployment relief should be paid for as far as possible out of revenue, and if the Government is to cope with unemployment and pay for it out of revenue, it is difficult at the same time to give away revenue by reduction in taxation. “WORSE UNDER LABOUR RULE” “Critics continually demand that the Government should evolve some complete scheme which will at all times absorb all who want work. They say the present methods are haphazard and piecemeal and insufficient. But our experience and tne experience of all other countries shows that unless relief works are kept down to a minimum, and the wages kept at a standard less attractive than normal wages in private employment, men leave private work to come on public works and their numbers tend to grow and become permanent. “Those who say a change of Government will solve the problem have to explain why unemployment is far more chronic and on much larger scale under the Labour Governments in Australia than under the Reform Government in New Zealand.”