IN THE PUBLIC MIND.

Auckland Star, Volume LXV, Issue 204, 29 August 1934, Page 6

IN THE PUBLIC MIND.

SANCTITY OF CONTRACT,

CIVIL SERVANTS AND OTHERS.

(To the Editor.)

I would like to heartily endorse the sentiments expressed 'both by "John Citizen" and A. A. Irvine. It seems to me that there- is only one class of the community that has not been called upon to bear a reduction in income since such reductions became necessary, and that is the large body of State euperannuitants. Why should this one class be exempt from the severe "cuts" imposed? "A ■State Superannuitant" talks about the sanctity, of contract involved, but was not tho same principle involved, and broken, in every other action taken by the Government to balance its Budget, and the result everv bit as disastrous to those involved as any "cut" in the present superannuation of retired civil servants could possibly be? HeTe are two cases known to me personally. The first is that of a widow who on the death of her hueband a few years ago invested the email amount of insurance moneys, etc. received, in Government inscribed stock, relying, like "A State Superannuitant," on the security of the good faith of the State. What is her position to-day? The Government has repudiated its liability and reduced her income by 20 per cent. This widow has a Government mortgage on her home, but have they reduced the interest on this likewise? Oil, no, that is a very different matter. Then she also belongs to that large number of widow,? whom A. A. Irvine mentions, having one daughter aged fifteen but unable to find employment. She cannot claim the "widow's" (a misnomer, if ever there was one) pension, nor is she yet eligible for the old age pension. The other case is that of a retired civil servant. After a series of rapid rises in his position—and salary—owing to wholesale retirements by the Government, this man himself retired some four years ago on a princely superannuation, which, unlike the widow's mite, has suffered no "cut." As the John Citizens of New Zealand have to contribute a large proportion of the superannuation funds, I consider they have every right to demand that the present superannuitants , income's should be treated in the same manner as theirs and those of the present civil servants. "A State Superannuitant" draw* a parallel by referring to life assurance contracts. I would like to know the insurance company which for the premium per annum the State has received from a superannuated person during his years of service would be prepared to offer him the income he is at present receiving. And even an insurance company reserves the right to review its bonuses from year -to year in accordance with, the times. ANOTHER JOHN CITIZEN.