LOCAL BODY WORKS

Waikato Times, Volume 121, Issue 20279, 23 August 1937, Page 9

LOCAL BODY WORKS

LOANS WITHOUT POLLS. UNEMPLOYMENT PROBLEM. POSITION ANALYSED. The extensive public works programme of the Government, the wisdom and timeliness of which is being seriously questioned, is now being augmented by strong Government encouragement of local body plans for the early prosecution of further undertakings, which are being liberally subsidised out of unemployment taxation funds (says a statement by the Associated Chambers of Commerce of New Zealand). Reoent Legislation. Under legislation passed last session, the Government empowered looal authorities to borrow, without a poll of the ratepayers (unless a poll is demanded by at least 5 per cent of ratepayers) for public works subsidised out of the Unemployment Fund. This Is retrogressive legislation; one of the first enactments of the 1926 session of Parliament was the Local Authorities Empowering (Relief of Unemployment) Aot, which empowered local authorities, without taking a poll of the ratepayers, to borrow' moneys for the purpose of providing relief works for unemployed, men. In addition to providing direct employment as far as possible, the State further assisted by subsidising expenditure by local authorities. The Government then undertook responsibility for the unemployed, and special legislation and taxation “was Instituted in 1930. In consequence of the local bodies thus being relieved of the responsibility of the unemployed, the Act authorising local body loans without polls was allowed to lapse In 1933. To-day the assistance of local bodies in handling unemployment has been again Invoked, despite these two facts: (i) Whereas State expenditure on unemployment in 1932-33, from the Unemployment Fund, Public Works Fund and other moneys was £6,209,000, in 1936-37 It was approximately £12,267,000 —a colossal sum, representing an increase of almost 100 per per cent; (2) whereas merchandise exports brought an Income to New Zealand of £37,510,000 in 1932-33, in 1936-37 they brought a record income of £60,235,000 —an increase of 60 per oent. Question of Reserves. It is obvious that the methods which are being followed are not resulting In the solution of the unemployed problem; it appears that the more money that Is 6peni on It by public authorities the more needs to be spent. This piling-up of publio expenditure means the dissipation of resources, the sacrificing of any prospect of building up reserves, increases in public debts, the institution of publio works which in many cases will be needed as undertakings for the next depression, and the maintenance of—if not increases in—the present excessive rates and taxes, which restrict the ability of private enterprise to absorb the unemployed, and which accentuate the very trouble the present lavish public expenditure is designed to cure. It would seem that a better plan would be for the Government to call together a national industrial conference, of all interests, to discuss the impediments which stand in the way of trade, industry and commerce absorbing the unemployed. There has been ample evidence, particularly of late, that these impediments are real; recent Industrial legislation, increased costs and a shorter working week Imposed on industry, stringent restrictions on employers and on private enterprise generally, together with increased taxation, have all gone to accentuate the problem of unemployment.- It is not enough to say that private enterprise is failing in its responsibility of absorbing the unemployed, and that the State must, therefore, do the job; progress more substantial, basically sound, and with- less cost to the public purse, is likely to be made if the reasons for the failure of private enterprise in this regard are fully Investigated.