SUPERANNUATION FUNDS

Auckland Star, Volume LXIII, Issue 246, 17 October 1932, Page 16

SUPERANNUATION FUNDS

FEAR OF "REPUDIATION." STATEMENT BY MR. McVILLY. MR. STERLING'S PROMPT REPLY. (By Telegraph.—Press Association.) WELLINGTON, Sunday. "Until the deed becomes an accomplished fact I will refuse to believe the Government is either economically or morally bankrupt," said Mr. H. H. Sterling, chairman of the Railways Board, in replying to a charge by Mr. R. W. McVilly, formerly general manager of railways, that the Government might take the railway and Public Service superannuation funds. Speaking at the Railway Officers' Institute smoke concert last evening, when responding to the toast "Past Officers and Superannuated Members," Mr. McVilly intimated that he was going to say something about the superannuation fund. "My own view is that, from the outset, the fund was introduced by the Government itself. The scheme was supposed to be based on the London and North-Westem scheme, where the company subsidised the fund and paid an amount equal to that contributed by the men. Our fund had no contribution from the State, but a definite assurance was given, and so no contribution was necessary. It seems to me the talk is from a rather differsne angle to-day." Mr. McVilly denied that those who were on superannuation were getting benefits they did not pay for. "A.' Dishonest Thing." "You do not hear John Bull talking repudiation," continued Mr. McVilly. "Ii the State repudiates its obligations to the contributors to these funds, then it is doing a dishonest thing. It will probably do it," he added, amid laughter, "and we shall be told necessity knows no law." In the original Act there was also a clause which provided that the contract should be kept, notwithstanding a repeal of the Act. "The superannuation fund is being loaded with charges it was never intended to bear," Mr. McVilly concluded. "The fund is being used to relieve the Consolidated Fund of obligations it ought to bear." "Would Be Morally Bankrupt." Joining issue with Mr. McVilly, whom he acknowledged as his mentor, Mr. Sterling said he had not intended to say anything about superannuation, but he could not let Mr. McVilly's charges go unanswered. Nevertheless, he did not think ho meant all he had said. "Until the deed becomes an accomplished fact, I shafcl refuse to believe the Government is economically or morally bankrupt to the extent that it would be by such an act," Mr. Sterling declared. "It would be bankrupt economically and would be so morally bankrupt that it would write a page on New Zealand's history that would have an eternal smudge." Mr. V. R. J. Stanley, president of the New Zealand Railway Officers' Institute, said he would be very surprised if the Government did take the money when the Act came into force. Quite a large number of men had cancelled their life insurance policies in order to join the superannuation fund.