AGAINST A "DOLE”

Sun (Auckland), Volume IV, Issue 1057, 22 August 1930, Page 10

AGAINST A "DOLE”

EMPLOYERS OF PROVINCE STATE OBJECTIONS CURE FOR PROBLEM OUTLINED No scheme of unemployment insurance in New Zealand will be acceptable to the Auckland Provincial Employers' Association, which takes an optimistic view of the Dominion’s economic position and asserts that present problems can easily be overcome without recourse to any expensive legislation. Land settlement and a revival in local industries are suggested to provide work for those out of employment who are employable. “We contend that the official figures do not justify the assumption that unemployment In New Zealand has become a permanent feature In economic life, or has reached a stage at which it cannot be adequately dealt with by the Government with the machinery now at its disposal—probably with reorganisation and more close co-ordination but without the necessity for setting up another State Department or board as suggested, and without resorting to the specialised form of taxation as proposed,” says a statement forwarded by the association to Reform and United members of Parliament. It is suggested that the problem might better be attacked by setting up a Development of Industries Board, as suggested by the New Zealand Manufacturers’ Association.

“The unemployment levy as suggested is held to be inequitable if regarded as taxation, as it is not based on that equality of sacrifice which is admitted by economists as the only just basis. If, on the other hand, it is considered as a contribution to afi unemployment insurance fund, then only those who benefit by such fund should be forced to contribute. A contributor would have established a right to claim a sustenance allowance without working for it, or tu demand employment at a wage which he could not earn. This would be a very dangerous precedent to establish, and would far outweigh any advantage gained even by making the contributory levy universal, which in itself is impracticable as shown by the wide scope of exemptions. The association is of opinion that the Unemployment Committee's report was not a complete, and not an adequate analysis of all causes of unemployment; that it did not evolve any practical scheme for the increase of unemployment, and that the present BUI will prove unworkable. Existing departments, associations and organisations properly correlated should be able to deal with all unemployment which should normally arise in New Zeaalnd. A comparatively small proportionate increase in land settlemen,t - and a in local industries would be effective in practically eliminating existing unemployment in all cases where the unemployed are will- ; and able to give adequate return in labour for wages received Unfortunately there are a number practically unemployable. The figures October last placed these at 562. These can be dealt with only on humanitarian grounds and must always remain a tax on the country The social organisations which have done magnificent voluntary work in dealing with cases of distress are certainly entitled to more adequate financial aid the ,. S , tatel T lf ' nt - which sufTKests that hospital maintenance be separated from charitable aid, and the charitable aui boards subsidised efficiently to deal with cases of distress through unemployment. This woul£ be far better than perpetuating the “dole” system inevitable if the Unemployment ln its present form becomes law The Department of Economics of the Canterbury College had found “that the Unemployment Committee’s investigations were inadequate, its conclusions impetuous and the remedies it prescribes of such doubtful value that the experience of recent years alone is sufficient warning to avoid them.” The Canterbury Chamber of Commerce in endorsing this finding, pointed out that only some stimulus to economic activity and renewed confidence permeating through commerce and industry could satisfactorily relieve the situation.

As the total of the unemployed In New Zealand is apparently only a small fraction of 1 per cent, of * the population, we are confident that, provided adequate provision is made for registration and an effective check is imposed on the influx of persons who are likely to become a charge on the community, the unemployment problem, so far as this country is concerned, can b© dealt with without the necessity for special legislation as proposed,” concludes the statement. "We would therefore respectfully urge that due consideration be given to the objections which have been raised to such legislation, and that the present measure be at least held over until a complete and thorough investigation of all causes of unemployment be made, and a more practicable scheme of dealing with it be evolved. We are unanimously of opinion that once the ‘dole system,’ camouflaged as ‘sustenance allowance,’ is introduced into New Zealand, it will have a most disastrous effect, not only on the morals of the people, but on the future prosperity* of the country.” Resolutions expressing similar views by the New Zealand Farmers’ Union and the provincial branch of the union are quoted in support.

The view that unemployment is necessary for the expansion of industries was expressed this morning by Mr. Albert Spencer, president of the Provincial Employers’ Association, who advanced the view that if every worker was fully occupied existing industries could not expand, as every employer would be bidding against his fellow employer. This would soon destroy the foundation of industry. He considered that mistaken views of the question warped by political interests had given an entirely wrong impression of the position. Economists contend that a certain amount of unemployment is in the interests of the employers, and that therefore they should contribute to the idie workers’ upkeep. However, it would be dangerous to give relief on the same basis as an economic wage, since unemployment might well be caused through the worker’s own fault, laziness or incompetence. The unemployable could not be insured. It had been contended in England that the fear of unemployment caused tradesmen to linger over their work to earn more wages for the same labour, and it was thought that when this fear was removed the industrial output would increase. However, experience had proved this theory to be wrong, England now having more agitation, and more unemployment than over before. Many workers no longer recognised a duty to their employer or to the State, the result, being that the country’s industrial competitive powers were seriously impaired. Mr. Spencer considered the real problem here to be the expansion of secondary industries to provide the maximum of employment. Seasonal workers should be sufficiently well paid to tide them over slack months. The “dole” system in England had lead to carelessness and slackness since there was always the allowance to fall back on if work was lost. “In New Zealand what we need is a new policy,” said Mr. Spencer. “A’new country, full of possibilities, we seem to do more to handicap our productive industries, more to dry up the springs of employment, and less to encourage wage-paying enterprises. Let us get busy and encourage the growth and development of new industries and improve the economic working of the present ones/*