TO COVER ALL.

Auckland Star, Volume LXIX, Issue 74, 29 March 1938, Page 8

TO COVER ALL.

GOVERNMENTS AIM.

* PRACTICAL SCHEME."

FAMILY ALLOWANCE.

(By Telegraph.—Special to "Star.*")

WELLINGTON, thi* <lay.

For several months the whole position of the Government's scheme Ims been thoroughly threshed out by two special sub-eom-mittees of Cabinet, which dealt separately with the health and superannuation aspects. They finally came together, and brought down a coordinated s file me, which caucus has been specially called to consider. If approved, it will form the basitj of the scheme to be placed before the special Select Cominitte of the House of Representatives, which 011 April 5 will assemble to hear evidence from interested organisations and administrative bodies.

These organisations' opinions will be sought nn the social welfare legislation, which, Mr. Savage declares, is the most important humanitarian scheme ever likely to be initiated by New Zealand, or any other country.

Largely responsible for the long delay in bringing the scheme to its present stage has been the immense financial obligation involved, consideration of the amount of the contribution, and whether pensions should start at 60 or 65 years.

In its present form the plan involves an expenditure of between £ 1(5,000,000 and £17,000,000 annually. How is this huge sum to be raised, as it must be obtained from annual taxation, and not from the resources of the Reserve Bank. The proposal is, therefore, to increase the present employment promotion tax of 8d in the £ to 1/ in the £, which is estimated to produce in the vicinity of £8,000,000 annually. The present social services are costing the taxpayer, according to latest figures quoted at Grey Lynn, Auckland, by the Under-Secretary in Charge of State Housing, Mr. J. A. Lee, £6,769,000. These two large amounts would still leave an apparent deficiency of from £1,250,000 to £2,250,000 which would need to be provided from the Consolidated Fund. Nobody Left Out. The largest expenditure involved in the new plan is to provide a free health service for the whole community and, as it is well known that there are about *1000 doctors practising, and as it is understood that these, omitting specialists, will receive not less than £1000 annually, the gross expenditure of this department will involve over £3,000,000. This will be inclusive of the piesent costs of hospital treatment.

It has been gathered from lobby discussion that the full scheme leaves nobody out, thus carrying out the Prime Minister's expressed ideal that, while

poorer people come fir~t. every section of tlie community will be entitled to benefit.

"W liile Sir .Ti.-pph Ward's £70.000,000 scheme of 19"2S was imaginative, and captured the country, it was found to be impracticable." remarked a Labour leader, '"but I think onr scheme will be equally imaginative, and, at a quarter of the cost, will be practical, as well as satisfying."

The principal benefits under the scheme are understood to be as follow:

Old ajre pensioners to lose this title and become superannuitants with pensions of 30/ weekly. Taking tlie present oflieial fijrures into account, thi* involves approximately an additional £1,500.000. There will l>e two superannuation stapes in future, one eommencinjs at the ape of 60, with a payment of £1 2/(i weekly, to l>e increased to 30/ on reaching tlie ap;e of (>.">. For those who elect to come on the scheme at the earlier aye. it is estimated that nearly £750,000 will have to be budgeted for.

Widow*' pensions are to be increased to 25/ weekly, where they have children under the age of 10. Widow* with no children, or where the children are over 16, will receive the pension at the as;e of 45. These increased payments to widows involve approximately £500,000. Orphan* are to receive special treatment with a view to encouraging their retention in private homes, and those taking care of tliem are to receive 15/ weekly for each child. Aid for Invalids. Invalidity pensions are to be increased from 20/ to 25/ weekly, involving increased expenditure of approximately £150.000. Sickness and sustenance payments arc to be made to men and women, proposals involving approximately £1,000,000. There are to be safeguards in regard to women's sustenance. In respect to working girls, the maximum benefit under certain circumstances will be £1 weekly. What are regarded as "industrial casualties," namely, persons unemployable or incapacitated, will receive special treatment, involving an annual expenditure of about £500,000. In formulating their plans, the special committees contemplate the abolition of all subsidised relief works, such as Scheme 5, and in framing their proposals provide only for the payment of sustenance, involving in the aggregate between £1,500,000 and £1,750,000 annually. It is also suggested that the special exemption under the ordinary income tax of £50 for each child up to 10 years of age be abolished, and a family allowance of 2/ weekly for each child paid instead, at an estimated cost of about £250,000. Case of Returned Men. The returned soldier is not being overlooked, the proposal being that he should receive his superannuation at the earlier age of 55, and that economic pensions should be increased from 25/ to 30/ weekly. In whatever form these proposals emerge from the scrutiny of the caucus and the-Parliamentary Committee they will become law during the coming session of Parliament, and the Government is credited with a desire then to make a prompt appeal to the country for endorsement of its advanced social welfare policy.