LOCAL BODY RELIEF

Sun (Auckland), Volume IV, Issue 995, 11 June 1930, Page 11

LOCAL BODY RELIEF

STATE DOUBLES RATE OF SUBSIDY CITIES AND BOROUGHS Press Association WELLINGTON, Tuesday The Government has decided to improve the basis on which the State subsidy is payable in respect of unemployment relief works undertaken in urban and suburban districts. This information was given today by the Prime Minister. the Hon. G. W. Forbes. In the past, the Government has subsidised the labour costs on unemplo> - ment relief works in cities and boroughs on the basis of pound for pound, but in future the subsidy will be increased to £2 for £l. This increasis for the purpose of encouraging local bodies to provide relief works adjn - cent to the workers’ homes, and thus obviate as far as possible the necessity for sending married men with larafamilies to unemployment relief works in the country. Where the number of unemployed in a district is sufficient to justify the local body undertaking special relief works, a Btate subsidy of £2 for £ 1. based on the standard relief wages of 14s a day. w.ll be paid on labour costs in respect of (.a) moneys borrowed for the sole purpose of unemplovnier: relief, provided the works on which such moneys arc- to be expended ha\e not been Included in any schedule ol works for which a loan has already been raised; ib) moneys expended from revenue on works of a capital nature undertaken expressly for tl\e relief of unemployment. In the case of works undertaken from voluntary subscriptions, the subsidy is pound for pound, based on the expenditure on materials as well as labour, and is not limited to relief rates of pay. The foregoing subsidies apply to urban and suburban districts. In rural districts (.counties. road districts, etc.), a pound for pound subsidy is payable on materials as well as wages in respect of works undertaken from revenue, loans or voluntary subscriptions. Works which local bodies propose to undertake with publi« subscriptions, and all works in rural districts, must contain at least 60 per cent, of labour, as in these rases the subsidy is payable on both materials and wages. In addition to providing moneys to subsidise the relief works provided by local bodies, stated Mr. Forbes, the Government was also meeting the position by pushing ahead with public works and afforestation as far as fund*' would permit.