TAX BURDEN.

Auckland Star, Volume LXIX, Issue 226, 24 September 1938, Page 12

TAX BURDEN.

SOCIAL BENEFITS.

OPPOSITION ATTACK.

MR. HAMILTON SPEAKS. " ROPING IN" ALL CLASSES. (By Telegraph.—Own Correspondent.) 1 C HRISTCHURCH, this day. "So measure has been so hacked about with alteration and major amendments as the Social Security Bill which has now been placed on the Statute Book by the Labour Government," said the Leader of the Opposition, the Hon. A. Hamilton, in his broadcast address last evening. ''Perhaps no major measure in recent years has been of such wide, direct interest to the comnmnitv.

"I am fully aware that the Govern tnent has emphasised the benefits side, and has consistently soft-pedalled on the financial side. When there has been any evidence of disquiet in the minds of the public as to the financial aspect of the proposal, the retort of the Government on each occasion has rather suggested that those who bother about that are merely 'umbrella' people, who will not take risks.

"For the benefits under this Act. every person is going to pay, and pay heavily. On the family budget this proposal increases direct taxation by r»rt per cent at least—and In-fore it is finished probably increases direct and indirect taxation by 100 per cent and, without a blush, the Labour Government is roping into its taxation net people of all classes, who. formerly, because of age. tender youth or hardship, were exempt from wages tax; boys and girls from 10 years to 20 years, all of whom do not have a vote or any sav in the matter at all. This, ill itself, is a vicious example of taxation without representation.

"The Consolidated Fund is just another name for your pocket."' he con- ( tinned. "Let there l>e no illusion about f taxation. Nor should there be any misunderstanding about hospital rating. This Act will undeniably increase rate- j for everybody—another additional and ' unsought burden. 1 Shocks and "Thunderbolt." , "I am certain that I echo the voice 1 of the majority of the people when I j say that there is very serious disquiet < concerning this Social Security measure. 1 The people have not forgotten the Prime Minister's promise that taxation would not be increased. So long as the Government operated with a magic formul:i. t which supposedly gave something for j nothing, perhaps some would have been < prepared to give any scheme a trial, but to-day that illusion is rudely shattered. "The first shock came when the original proposals merely called the old-age pension 'superannuation' and made no real provision for 'superannuation' at all. The second shock came in the announcement of the 1/ in the £ tax on wages. "The next shock was the decision to tax children, women, pensioners, domestics and relief workers, and make everyone pay a poll-tax to register, whether they earned or not — Maori and pakeha. "Then came the thunderbolt—the amendment by Mr. Nash, after the bill had been introduced, taxing companies— another load on the backs of the already overtaxed trading concerns. That is just the same as saying that it was a further tax on the people. You pay in the cost of living, where the cost can be handed on, and where it can't you are merely crippling further the firms and enterprises which provide you, your family and your friends with work. "What confidence can anyone in the Dominion have in a Government with such a method of finance T" Scheme Fails to Meet Need. "I would like to make the attitude of our party clear," said Mr. Hamilton. "The provision of social services is no new thing in New Zealand. The Dominion has led the world in social legislation. It is of this fact that the Government is apt to lose sight when it claims that it is blazing a new trail. In truth they are merely placing another storey on top of an already well-built structure. It is unfortunate that in this performance their architecture is so unsound that there is a definite threat to the whole structure of our social security. "I want to acknowledge that this Government has introduced some new classes of pensions — invalidity and orphans —and these will be continued by the National party when it becomes the » Government. Our party will bow to no one in its desire to make adequate pro- • vision for those who are in need of assistance from the State." "There is a general desire by the people, for a properly thought-out superannuation scheme that will provide an income in a person's old age, regardless ' of other resources, but the present I scheme is entirely unsatisfactory and . utterly fails to meet the .people's ' desires. ' "The National party has a plan .to 1 meet the need. It holds that super- ' annuation funds must be administered in a separate trust, independent of Gov- ' eminent finances. The. scheme sliouid lie financed by direct contribution entitling every person to the benefit with- • out a mean* test. Those persons. ® including State employees and others in ' private superannuation schemes, who * nave made provision for their own old ' age, shall be exempt from any tompulsion to subscribe to the State scheme. They may enter the scheme voluntarily " if they wish." * Health Scheme Condemned. ? Referring to the Government's health 1 scheme, Mr. Hamilton said New Zealand " had done better in health matters by f following her own lines than any counI trv which had tried health insurance r schemes. It was more likely that it " was a backward step for us to adopt a system which was devised 50 years il ago to meet conditions which had II scarcely any application to New Zealand - to-day. (> The Government's scheme merely provided a partial service for all by inequit 11 able methods, but the National party's t i scheme was to concentrate entirely on I those who needed medical attention, but d could not afford to pay for it, so that they must have a complete service free, d'and there was no need to revolutionise n a wonderful system .to give thein that, c | Medical standards in New Zealand a had been built up on- the basis of incenIt tives which would be diminished by any s. universal system, he said. There would Id be a tendency for doctors to specialise le curly and, therefore, before they had in acquired wide experience, in order to ■v build lip a panel list, and it would be >e found that senior qualifications were ot f>r little value" to general practitioners, s- The proposal in the Act, he declared, al was to provide a partial medical ser- ' vies for all, rich or poor.