OLD AGE PENSION.

Auckland Star, Volume LXV, Issue 230, 28 September 1934, Page 14

OLD AGE PENSION.

MAXIMUM NOW £43. HOUSE PASSES INCREASE. RETROSPECTIVE TO APRIL 1. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. As foreshadowed, the 5 per cent increase in the allowances to old age pensioners will operate as from April 1 last. Under the Finance Bill passed by the House of Representatives last night, the maximum old age, pension is increased from £40 19/ to' £43. "Jn addition, the amount of income -which the pensioner can be in receipt of without suffering a reduction in the maximum is raised from £39 to £41.

The case of married old age 1 pensioners is also dealt with. The existing law is that the joint pensions of husband and wife, together with their joint private income, must not exceed £121, this amount being approximately the total of two pensions of £40 19/, plus other joint income of £39. As the amount of pension and income exemption is being increased, as stated, the amount of £121 is being consequently raised to £127.

South African War Pensioners. It was explained by the Minister of Finance, Mr. Coates, that South African war pensioners received £13 a„ year in addition to the ordinary old ago pension,, it being provided, however, that their aggregate receipts from all sources must not exceed £79 19/. That sum was calculated by reference vo the amount of the old age pension, also to the amount of private income received. As old age pension rates Avere being increased, it was necessary to raise to £84 the amount of income exemption in the case of South African veterans.

Mr. Coates added that by making the old-age pension increases retrospective to April 1 there would be an additional expenditure for the year of £34,000, but in view of the slightly more buoyant state .of the revenue, as indicated in the returns up to August 31, he felt that the finances could stand the additional strain.: Some financial adjustments might follow in the amount reserved for the supplementary Estimates, but when the Appropriation Bill was before the House'he would be in a position to give further information as to the financial aspects then.

Labour Claims Credit. The Leader of the Opposition, Mr. M. J. Savage, said it was apparent that the old-age pensioners had to thank the Opposition for the increase being made retrospective. In his Budget speech the Minister did not propose that the pensions increases should operate from April 1, but the opposition to the discrimination had forced him to change his mind. There had been an improvement in the finances.

Mr. Coates: Every Opposition takes credit for. theee things.

Mr. Savage saii it'did not take a. genius to point to flaws in the Budget. The South African veterans would welcome the provision being made for them, but nothing was being- done for the dependents of soldiers. The increase, as far as old-age pensioners were concerned, amounted to 9d per week, and they were also obtaining a further concession, in that they were being allowed to earn a further 9d per week. They would soon be able to buy-a farm with their money. (Laughter.) Still, the 9d was welcome, and one would like to see pensions increased bejond the amounts that were' paid before the reductions.

Mr. Coates intimated that an additional expenditure of £150,000 would be involved if the 5 per cent increase weregiven to all classes of 'pensioners.

Mr. F. Langstone (Labour, Waimarino): Your profits | from the Reserve Bank will be ample.'

Mr. Coates saia the Government wbuld keep in view the promise ; given Mr. W. E. Parry previously, regarding miners' widows' pensions. ";/