8.—6.

The absorption of the unemployed into industry is essentially a slow process, and until this can be fully achieved it is the policy of the Government to find useful work for all fit able-bodied men on public works, land development, and local body works. Liberal subsidies have been granted out of the Employment Promotion Fund to local authorities to enable additional men, over and above their normal staff, to be engaged on the construction of playing-areas, drainage, sewerage, and other types of work which provide desirable public amenities which, but for such assistance, would be beyond the financial capacity of the ratepayers at the present time. Past experience has shown that the payment of sustenance for lengthy periods not only destroys a man's ability to work, but in a number of cases the desire for work has also been lost. By providing worth-while work for the unemployed their industrial ability is maintained, and the possibilities of their absorption into permanent employment is thus enhanced. The balance in the Fund at the beginning of last financial year was £253,000 which, together with revenue from taxation amounting to £5,105,000, interest and other miscellaneous receipts of £40,000, provided the sum of £5,398,000 for the promotion of employment during the year. Of the taxation revenue of £5,105,000 the sum of £448,850 was received from the registration levy, £3,027,480 from wages-tax, and £1,628,670 from the special charge on other income. In last year's Budget it was estimated that the total revenue would amount to £5,180,000. The actual revenue was £5,145,000, which is £35,000 less than the estimate, and represents a variation of less than 1 per cent, of the total collections. Compared with the previous year, the revenue from taxation shows an increase of £880,000, equivalent to 20-83 per cent. The increase in the revenue from wagestax was £436,650, or 16-85 per cent., and represents an increase during the year ended 31st March, 1938, in the amount of salaries and wages paid to persons liable for the tax of no less than £13,100,000. The increase in the revenue from the special charge on " other income " is £435,100 in excess of the receipts for the year ended 31st March, 1937. In the latter year, however, credit-notes to the extent of £36,866 (issued in the previous year to persons who had paid the whole year's tax at the rate of lOd. in the £l) were used towards payment of tax, and if this sum is added to the actual collections for the financial year 1936-37, the true increase in the revenue from the special charge on " other income" will be £398,267, equivalent to an increase of 32-36 per cent. This sum represents an increase during the year ended 31st March, 1937, in the incomes of persons liable for this charge, of £12,000,000. Disbursements from the Fund jfor last year totalled £4,239,456, made up as follows : — £ Wages and other payments under various schemes .. 2,519,523 Food, clothing, and other necessities .. .. 7,564 Sustenance payments .. .. .. .. 1,349,162 Sundry loans and grants .. .. .. 72,919 Christmas bonus and other miscellaneous payments 55,288 Administration expenses . . . . . . 235,000 £4,239,456 Revenue for the current year is estimated at £5,377,000, being an increase of £231,900 over last year's receipts. The balance in hand at the Ist April last was £1,158,890, so that the sum of £6,535,890 will be available for expenditure out of the Fund during the year. The increased resources available has enabled the Government to offer work to practically all physically fit men who were unemployed. The results that have been achieved in this direction are most satisfactory, and before long all the fit men registered should be in full-time work.

Employment Promotion Fund.

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