RUN OF CLAUSES.

Auckland Star, Volume LXIX, Issue 207, 2 September 1938, Page 11

RUN OF CLAUSES.

PASS IN COMMITTEE. RAPID PROGRESS MADE. IMPORTANT AMENDMENTS. (By Telegraph.—Press Association.) WELLINGTON, Thursday. The House of Representatives resumed discussion on the Committee stages of the Social Security Bill at 7.30 p.m. when the second clause was passed without further discussion. Speaking on the clause providing for , the establishment of a social security ; department, the Leader of the Opposition, Mr. Hamilton, said he did not see I the necessity for setting up of a new department, and expressed the opinion that the administration of the Act could i equally well be carried out by the Pen- , sio,ls Department, which was a wonderful department of State and had done much in the service of the country. , After making rapid progress with the passing of several clauses, the Minister in charge of the bill, Mr. Nash, intimated that two amendments had been decided upon in clause 10 of the bill which contains interpretations of superannuation benefits, and benefits in respect of age, and other special conditions. One of the amendments deals with the definition of income and will exclude from such definition the value of benefits paid under the medical and hospital proposals if scheme. The other amendment will exclude from income as assessed under the bill capital moneys received in respect of the sale or I exchange of any property. Previously the bill end not exclude medical and hospital benefits from assessable income and excluded "any moneys" received from property sales not "any capital moneys." The clause was passed as amended. Persons Over Age of Sixty-five. Dealing with clause 11, providing that persons over the age of 65 should be entitled to superannuation benefits. Mr. S. G. Holland (National, Christchurch North) asked the Minister if he would agree that at least £000,000 worth of fresh taxation would be required for superannuation. The Minister of Finance: The honourable gentleman knows quite well that I said it would cost £600,000 next year. Mr. Holland: How about the cost in the scheme's fifth, tenth and twentieth years when everyone aged 65 will be entitled to the full £78 superannuation? Mr. W. J. Poleon (National, Stratford) said that universal superannuation would cost about £13,000,000. At pre; sent about 70.000 people were contributing to well-known superannuation schemes, and a very large number to other funds. There were only about 20,000 people not contributing to any superannuation fund. Estimate for Year 1940. Mr. J. Hargest (National, Awarua) .said that by 1940 the estimated number Of the population entitled to benefit at the_ age of 65 would (be about 130,000, which at £10 per head, would mean an expenditure of £1,300,<i00. He thought the country was embarking on a very dangerous venture, and that people now in good superannuation ictf&nes? would prefer to bfe left alone. ' » Mr. Nash replied that superannuation benefit for 1940-41 would go to about 60,000 people, making a total sum payable of £600,000. In 1942 the amount would be £800,000. It would be £1,000,000 in 1943, and £1,100,000 the year after. In 1945 it was' estimated at £1,300,000.

The clause was passed, as were the next 22 clauses, which went through with practically no discussion.

At this juncture the Minister of Finance moved that progress be reported in order that the supplementary order paper might be presented. This was agreed to.

When progress was reported 32 clauses qf the bill had been passed.

The Minister said he was adopting this course in order that a number of amendments and also a few new clauses to the (bill could be introduced. The procedure he had suggested would enable members to give them consideration before proceeding with further discussion of the bill. The amendmentswould be circulated among members immediately.

On the motion of the Minister of Education, Mr. Fraser, the House rose at 10 p.m. until 10.30 to-morrow, ■ when eight classes of estimates will be considered.