H.—35.

As compared with the previous year, the payments show a reduction of £331,109. This is principally due to a decrease in the number of persons who were compelled to seek relief from the Fund during the year. Revenue, 1935-36. After allowing for the reduction in taxation to Bd. in the pound for half the year, and certain exemptions which did not take full effect until the current year, it is estimated that the Board's revenue will be : — £ Levy 410,000 Wages-tax .. .. .. •• •• •• •• 2,358,000 Other income .. .. .. •• •• •• •• 1,053,000 Total £3,821,000 The cash balance in the Fund at 31st March, 1935, amounted to £1,332,946. After allowing for accounts due and unpaid at 31st March, 1935, estimated at approximately £294,000, there will be available for unemployment relief during the year the sum of £4,859,946. While this amount is £947,814 more than the actual payments out of the Fund for the year ended 31st March, 1935, it is anticipated that, with the extra relief granted this year in the form of increased Scheme 5 and sustenance rates, and the provision of supplementary relief in the form of blankets, boots, rations, &c., the expenditure during the current year will be greater than that for the year 1934-35. The policy of the Board to find full-time employment for a greater number of men at standard rates of pay will also have the effect of considerably increasing the expenditure out of the Fund during the current year. Administration Expenses. It will be noted that the payments in respect of administration expenses totalled £139,000. This sum represents 3-55 per cent, of the total payments of £3,912,132 from the Fund. The percentage of administration payments to total payments in the year 1933—34 was 2 - 65 per cent. The total payments d.o not, however, provide a satisfactory basis for comparing the cost of administration year by year, since the payments for a particular year include items of expenditure actually incurred in a previous year, while the whole year's expenditure will not be shown in the payments, since at the end of the year there will be commitments due and unpaid. The actual expenditure on administration when unpaid accounts at the end of each year are included was —1931-32, £55,015 ;■ 1932-33, £95,165 ; 1933-34, £117,335 ; 1934-35, £133,030 (approximately). The latter figures, representing actual expenditure, form a more satisfactory basis for comparing costs of administration. Percentage costs extracted on this basis show the comparative position for the years 1931-32, 1932-33, 1933-34, and 1934-35 as follows : — 1931-32. 1932-33. 1933-34. 1934-35.* (1) Total expenditure, including un- £ £ £ £ paid creditors, at 31st March 2,268,197 3,839,807 4,311,360 3,963,336 Plus cost of collection of levy retained by Post Office .. 4,000 6,500 t t £2,272,197 £3,846,307 £4,311,360 £3,963,336 (2) Amount of administration expenses included in total cost shown above .. .. £55,015 £95,165 £117,335 £133,030 (3) Administration expenses as per- Per Cent. Per Cent. Per Cent. Per Cent. centage of total cost .. 2-42 2-47 2-72 3-36 Having regard to the thousands of men in receipt of relief, and the necessity of investigating their circumstances and eligibility, and considering the multiplicity and variety of schemes under which they are engaged, the administrative costs are exceedingly low.

* Final figures for the year 1934-35 are not yet available ; the figures quoted may be subject to slight alteration, but not sufficient to make any material difference in the percentage of administration expenses to total expenditure. f Cost of collection of levy for the years 1933-34 and 1934-35 was appropriated and is therefore included in total expenditure.

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