SOCIAL SECURITY.

Auckland Star, Volume LXIX, Issue 225, 23 September 1938, Page 6

SOCIAL SECURITY.

THE FINANCIAL ASPECT.

(To the Editor.)

I hope that "'A Convert"' doe* not expect me to apologise for makinsr political capital out <'f my interpretation of the plea made in Parliament by tbe member for Manukau. It is not my fault tliat his argument, that the friendly societies could not give the benefits enumerated in this measure. proves the very opposite of what he obviously intended to claim in its favour. It liis statement is correct. a s it probably is. it proves conclusively what all financiers saw at once, that as friendly societies are mutual, and managed economically the only reason why the new social security measure can gi ve more benefits than frieiwllv societies, especially as it will be more expensively managed. is because the hard workers and llie provident are to {ret nothing in return for their pavments of a lifetime, except some ■= in all health benefits which ma ■ or may not be r-piired. My objection to the whole scheme is that it i- financially unsound, unfair in its incidence, and demoralising in its effect*, and it is doubtless because of the first of these, as proved by all the evidence of those who know anything about finance, that the Government repudiated its previous claim for urreiKy. It has lioid it up till April 1, putting it i»*o next financial year, so that its weakness will not be fullv exposed before the' election. If it i- returned it will reveal its discovery tiii't more contributions than it l':'.s n-ur.cd are required, or else that the benefits in'.'-t be rediK-ed. If it is defeated it will ridicule the National Government'- determination to make it financially sound. FINANCIAL.