SOCIAL SECURITY FINANCE

Auckland Star, Volume LXXII, Issue 171, 22 July 1941, Page 6

SOCIAL SECURITY FINANCE

QNE of the theoretical advantages of the Social Security scheme was that it would remove a great part of the cost of social services from 1 lie Budget. This cost had been steadily rising, and the depression years had shown how difficult it might become to sustain when the revenue of the Consolidated Fund was severely reduced. If the cost could be met mainly by a separate tax levied for a specific purpose—it was argued—the social services would be placed on a more secure basis. This argument, or hope, has not been borne out by experience. In its first year, 1930-40, the Social Security Fund received £1,809,000 from ihc Consolidated Fund, in its second £3,200,000, and in its third it is (o receive £3,600,000. This last-named sum represents almost one-fourth of the total estimated expenditure from the fund of £14,673,000. Apart from the expenditure out of the Social Security Fund, the Budget this 3 car provides for the spending of £12,765,000 on social services— £1,000,000 more than last year—and this includes £346,000 for the Health Department, "mainly on account of increased subsidies to hospital boards." The necessity for these increased subsidies is in great part attributable to the social security system, and they are properly chargeable to the fund. Even without this, the estimated cost of the hospital benefit this year is £1,435,000, against £1,259,000 last year. It must be borne in mind that the social security system, as contemplated and promised, is not in operation. Apart from the general practitioner service, still not available to most people (though Mr. Nash has optimistically provided £600.000 for it this year), there were promised, "when the organisation and finances are available," the following services: Anaesthetic, laboratory and radiology, specialist and consultant, massage and physio-therapy, transport to and from hospital, dental and optical benefits—and also "a free home nursing and domestic help service when the necessary staff has been trained." No one has suggested that ihcsc additional services are to be provided in the near future—although a general practitioner service, if and when achieved, will certainly need to be complemented by a specialist service—nor has anyone yet estimated the cost of providing them. What does seem certain is that the cost of the services already being provided is increasing and will increase faster than the receipts from the 1/ tax—which means that increasing amounts will have to be provided out of the Consolidated Fund. Experience of social security finance to date strongly suggests that problems which were inherent in plans hastily and faultily conceived are emerging and will become more and more prominent. There is an obvious need to define exactly the purpose of the scheme. At present money is being paid out of the fund for old-age pensions, for universal superannuation, for invalidity, for widowhood, for unemployment, and also to relieve the .financial burden of parents. There is also to be paid out this year £3,000,000 in medical, pharmaceutical, maternity and hospital benefits. There is apparent no consistent idea, except that if persons meet misfortune there shall be provided for them a sum of money. Yet, in so far as the scheme can be called a health insurance scheme, nothing is more certain than that distribution of cash will not keep a people in good health. That great object can be promoted by spending money on disease-prevention, but this is not one of the purposes of the Social Security Department. Millions are spent on the treatment of disease, but not one penny in the social security budget is provided for its prevention.