Government Pressed for Bigger Subsidy

Sun (Auckland), Volume III, Issue 712, 11 July 1929, Page 1

Government Pressed for Bigger Subsidy

£25,000 OFFER DEPUTATION FROM CITIES (THE SUN’S Parliamentary Reporter) WELLINGTON/ Today. A more generoCis subsidy from the Government in respect to the offer of £25,000 to each of the four cities was sought by a deputation comprising Mr. G. Baildon, Mayor of Auckland, Mr. G. A. Troup, Mayor of Wellington, Mr. D. G. Sullivan, represeting the Mayor of Christchurch, and Mr. R. S. Black, Mayor of Dunedin, who waited on the: Prime Minister today. It was asked that the Government subsidy should be £ for £ on the whole work, instead of a subsidy only on the labour. It was pointed out that the Government’s offer really amounted to only a one-third subsidy on the total cost, and the burden of bearing the other two-thirds was too great for the municipalities. In promising very earnest consideration to the representations, Sir Joseph Ward said that it would be necessary to consult Cabinet as an increase in the State’s contribution was involved. He said the Government could not keep the money supplies going at the present rate in relieving unemployment. “While you have your difficulty, gentlemen,” he said, “I want you to realise I have mine. The obvious fact is that in offering this subsidy the Government has taken an obligation which is really not an obligation.” Mr. Sullivan: Is it not a national obligation ? Sir Joseph: It never has been, although it is tending that way. We haven’t as a nation undertaken to make provision to keep men in employment all over the country. If we are going to do that we must have a fund for the purpose, and I may yet have to consult Parliament with a view to submitting a scheme for the general treatment of unemployment on national lines. As the position now is I cannot ignore the fact that the Treasury has only a limited amount available. No one can look on complacently at the present disturbed condition caused by unemployment. The Government is doing the best it can, yet members of Parliament are crying out for no further expenses on railways, but thousands of men would be turned adrift if we yielded to the panic cries of not making railways because they are not going to pay. We are laying down a well-defined railway policy, and will spend no money on short distance lines, but we are committed to the making of certain longer lines. If we put the shutters up on that work we will add greatly to unemployment. “I will give your representations the fullest consideration,’.’ he concluded.