SHILLING IN £.

Auckland Star, Volume LXIX, Issue 79, 4 April 1938, Page 9

SHILLING IN £.

MR. SAVAGE ON COST.

REPLY TO CRITICISMS.

'■ WONDERFUL RESOURCES."

'"Matty \\\]\ illl.! '_■ )l" tli.li 111,,.,. Mil)--1«111 i;> I ii.tph.-4>-, in -m-i.i! prngrc-., ,-u-p i'-»iii-_r (n ■<>•■; nn pnornnni.s :nn>>iint. So they will. Hut perhaps T nii-_'!-t t<. reining t!.. m tli.it a f<.w y.-aiv. ;>■_'■. we were pa\ in« 1/ in tlip L' on «a_--- .-in.) incomes -jrpatly below tlm prrvent -la is•l.ird rate;, and. th» '..i\ w: I"- , ;'. "!'■'" Iwiii'ti'rs—a» iii.inv i> f i!", !!■■■!!.!. ■'. .] re in em her— were ap;':i!!iir; : \ in.-i'lc^iia'.o." I'- ■ ■ ' - ; ". iMiii'iit was mmlo by tluI'riino Minister. Mr. Sjvav.e, \\ hen referring tii i>iit i.--' am ii-innri'— .if :i hr>av\ iiirrens-e in ta\,.:i..n { o lin.iiii-c the (."Vernmpnt".- social security pinpr.-ajs. "We are going I •-,, k t.i the 1/ in the £ but what will you receive for it tliitime?-' asked Mr. Savage. He summarised the benefits:—Unemployment benefits far in excess of 1933 level. Sickness benefits for the first time * in our history. Incapacity benefits (also a new provision). A generous increase in invalidity pensions. A very substantial increase in the scope and benefits of widows' pensions. The institution of orphans' pensions. Increases for miners, war veterans, and the recipients of family allowances. The instit-lion of a universal health service for all classes of the community. Load on Exchequer. "As a crown to these achievements there will be the institution of a State Superannuation Service that will remove once and for all the fear of want in the eventide of life," Mr. Savage went on. "You will realise that a contribution of 1/ in the £ cannot pay for all these services and it was never intended that it should. The State will subsidise the contributions £ for £ creatine a load on the Exchequer that could onlv be borne by a country made increasingly prosperous by the deliberate policy of the Government. "The Parliamentary Committee would begin consideration of the proposals next week. After they had heard the evidence they would report to the Government, when the necessary legislation would be drafted for submission to Parliament during the next session. When the bill became law the Government would immediately prepare the necessary machinery to inaugurate the new Social Security Department and the benefits mentioned would be paid as from April 1 of next year, when the Social Security contributions commenced. Production Source of Benefits. "After all, the production of a country is the only source from which benefits can be derived," Mr. Savage continued. '"The Government's policy of utilising our wonderful resources and expanding production—primary and secondary—will enable us to give this social security for all, along the lines that I have mentioned, and to extend from time to time the scope of the benefits according to the urgency of the community's needs. "I am sure you appreciate that the organisation of the new Department required to administer a scheme of such dimensions is a huge task. The preparation of this Departmental machinery and the negotiations with the institutions affected by the scheme will take, several months of heavy work," said Mr. Savage, in conclusion. "We intend to see that every detail of organisation is thoroughly worked out so that, once the scheme has ewnmenced, there shall be no hitch in giving to the people the security which, we intend they shall have." The emergency unemployment charge would be abolished, he hoped, for ever, and in its stead would come the Social Security contribution which would provide thu beueiits.