Unemployment

Sun (Auckland), Volume IV, Issue 935, 31 March 1930, Page 10

Unemployment

SPECIAL COMMITTEE’S WORK Special to THE SUN WELLINGTON, Today. THE Special Committee on Unemployment, having completed its second report to the Government, lias now disbanded. At the close o£ its interim report, the committee announced its intention to investigate other subjects, such as land settlement, the development of new branches of industry connected with land, vocational education and other industrial matters.

In its second report, the committee pointed out that the proposed Permanent Unemployment Board, if established, would naturally take up the investigation of the above questions as part of its work. The committee also announced that it awaited further instructions from . the Government before taking u>p any further line of investigation. As the functions of the Unemployment Board and its possibilities for the encouragement of new industries and the promotion of the welfare of existing industries were linked closely with the question of raising any fund to be expended in economically sound schemes, it was expected that the Government would make an early decision as to whether it wished the investigation to proceed. Today, a member of the committee stated that since the presentation of the committee’s report to the Minister, it had had no communication from the Government. Naturally enough, he said, the committee did not wish to proceed to investigate further lines of operation of the proposed board if the Government was not prepared to appoint the hoard. That would have been wasted effort. At the same time it was felt that, if additional information was needed, it should be decided at once whether the committee was to continue its work, in order that the data available should be ready for Parliament by the time it met. It was now a month since Cabinet had had possession of the report, and by the time that Parliament assembled the position might be serious, so that prompt action would be necessary. For that action to be taken members of the Government should be fully

acquainted with the facts and with the possibilities of the proposed board. It was urged that the Government should decide at once what was its desire in this matter of further investigation. With the opportunity of forming considered judgment on the report, there is no doubt that a. large body of local opinion is swinging against tho insurance proposal and the sustenance allowance, and to a lesser degree against the functions of the proposed board. Manufacturers object that some of the provisions for the development of industries, which it is suggested that the board might assume, are the functions which they have laid down for the Development of Industries Board for which they are asking. They consider these functions could be better carried out by that Development of Industries Board. Economists object that the basis of the report is the assumption that the present state of unemployment is a permanent condition in the country, which they claim is erroneous, and that what is wanted is more prudent finance, less borrowing, and a less extravagant individual expenditure. They also take exception to the sustenance allowance, which is compared to the dole, despite the denial of Mr. T. O. Bishop that it constitutes this. It is contended that the maladjustment between labour and capital which has created the present position is not to be overcome by any board, and that to set up any central authority to coordinate seasonal and relief works will probably be costly and consume more than it saves. In addition there is strong objection to adding heavily to taxation at present.