EMPLOYMENT SCHEME

Sun (Auckland), Volume III, Issue 907, 26 February 1930, Page 1

EMPLOYMENT SCHEME

Approved —With Reservations AUCKLAND CITIZENS’ VIEWS CSNBRALLY the report of the Government committee on its scheme for unemployed insurance has met with the approval of leading business men and employers of labour in Auckland. All of them, however, made reservations. Some approved the various proposed forms of taxation—others opposed them individually. It was generally agreed that once the scheme became law it would never go out of operation again. A return to the old, simple ways of living was recommended as the surest way of dealing with the question of unemployment.

■ I agree with the individual tax and wiih the tax on individual incomes, but I do not agree that the undivided pn Sts ot companies should be taxed," sail Mr. J. W. TattersSeld, when the prcposals of the committee were re->r-ed to him this morning. ' Nor do I agree with the proposed tu on land,” he continued. “New Zetland is a primary producing country and the farmers are already faced with lower values. "The profits of companies have been (tejleted to such an extent that unemjloyment has been partly caused by the raiding on profits of such companies. It stands to reason that we cannot go on building up a business without saving some of the year’s profits In the same way that if an Individual does not save he will have nothing for a rainy day. "Whatever profits are saved from the yearly workings of a company must in some form or other eventually go toward the payment of labour. If the business is extended more labour must be employed. but one cannot do th'" without putting aside each year some of the profits. "I am much concerned with a certain class of unemployable people which is coming into New Zealand from overseas. Why should New Zealand take the unemployed of other countries and then her own people to keep them? "The scheme proposed by the committee will undoubtedly lead to abuse, but no more than any other scheme of Its kind. There are people who will take advantage of this unemployed relief just as they take advantake of Hospital Board relief at the present time. However, the Hospital Board has better facilities for the administration of relief than any Government scheme would have. “There ie another thing which must not be overlooked, and that i* that once this unemployed insurance scheme becomes law it ; will never go out of operation again.'’ I>r. E. P. Neale, a keen economist, kalil that although the committee’s proposed scheme would mean an increase In taxation, there were reductions which had been overlooked. New Zealand expended annually something like £250,000 on charitable aid and relief. If the scheme comes into ture will be quite unnecessary, operation, a proportion of this expendi“Undoubtedly,” he said, "the scheme vill mean an increase in taxation by the Government, but it will also mean a reduction in local taxation. It must not be overlooked, however, that he necessity for private individuals to put their hands in their pockets to give to private charity will be minimised. The aggregate expenditure of the people of the Dominion on private 'Ushiirsements cannot be assessed, hut it is a very substantial sum in the aggregate. “It seems to me that the tax on undivided profits of companies can be defended because such sums put to reserves are in much the same position as the earnings of individuals, from whatever source, which are subsequently reinvested. It seems to me to he only fair that all incomes should be ♦axed as far as possible in the same way. Some incomes would definitely escape taxation on account of unemployed relief if the earnings of comsanies put into reserves were not taxed. “I am rather sorry to see that the committee has made so much of the necessity for sustenance payments because I feel strongly that, while it is desirable to have such payments in the background, it would seem that such payments are merely a palliative

and it would be better to attack the unemployed problem more fundamentally. “The problem which has been the principal cause of unemployment is the general tendency of world prices to fall, and the effect of this is to accentuate most of the fixed burdens on individuals and at the same time engender feelings of pessimism. The result is the curtailment of industrial activity and the avenues of employment. The influences operating under this head in New Zealand can, however, be largely counteracted. We are favourably circumstanced in one respect, and that is the large amount of undeveloped land which is awaiting exploitation. Many of our swamp lands, if drained and developed, could be turned into farms. This has been done on the Rangitaiki and the Hauraki Plains. There are vast areas at Mercer which are awaiting similar treatment.” Dr. Neale is of the opinion that as soon as such swamp lands are developed they could be taken up by the unemployed and farmed successfully. PROVIDENT PERSON PENALISED “It is obviously a genuine attempt to deal with one of the most difficult situations that has yet faced the country,” said Miss Ellen Melville, one of the women representatives on the Auckland City Council. In her opinion, however, the best way to cope with the situation would be first of all to restore confidence in the country by a return to simple living and the old spirit of the pioneers. The scheme now submitted obviously means increased taxation which, just as obviously, will fall on the provident person, said Miss Melville. Miss Melville said further that if any Government would only have the moral courage to take practical measures to restrict the importation of luxuries, and prohibit the pernicious credit system, there would probably not be any need to set up a committee on unemployment In this young and undeveloped country with its wonderful natural wealth. The proposed unemployment insurance scheme is generally approved by Labour Union secretaries but also with reservations. Mr. H. Campbell, secretary of the painters' union, was of the opinion that it was not a good thing to go too far with relief work which, at best, was economically unsound. All relief work should have some economic value except at peak periods to tide over difficult times. “I am not in favour of the proposed method of taxation,” continued Mr. Campbell. “This means that people with incomes under £3OO will really pay more than those over the mark. The system of taxation should be a graduated one, beginning, I should say, at the £250 mark. “None of us Is in favour of another tax on land as the' farmers, particularly the small ones, have enough responsibility at the present time. Nor do we approve a tax on industry. If profits are taxed still further, it will hinder the expansion of business. The secondary industries of New Zealand should be developed to their fullest extent as this would considerably curtail unemployment.” Mr. Campbell thought that the scheme of allowance was not too big. but R would be something to carry on with and that was certainly a necessity ’ An Unemployed Advisory Hoard would certainly be a good thing. Secretaries the Trades Hall support a system of unemployed insurance of some kind.

The report of the Special Committee on Unemployment is printed on page 14-