SUPERANNUATION SCHEME

Press, Volume LXXIV, Issue 22338, 28 February 1938, Page 12

SUPERANNUATION SCHEME

POSTPONEMENT UNTIL NEXT SESSION COMMITTEE OF HOUSE TO HEAR EVIDENCE MR SAVAGE'S ANNOUNCEMENT tPBES3 ASSOCIATION TEI.EOEAM.) FEATHERSTON, February 26. Addressing the Labour Party picnic here this afternoon the Prime Minister 'the' Rt. Hon. M. J. Savage) said that before the national superannuation legislation was put through the House it would be referred to a special committee of Parliament, so as to give all persons interested in, or associated with, superannuation systems, an opportunity to be heard. The committee's proceedings would be open to the press. The exact date for the beginning of the committee's work had not yet been fixed, but it wotild be necessary to speed up the hearing, so that its report could be dealt with to enable the preparation of legislation for the last session of the present Parliament, which would open some time in June. The Government was going to liberalise the existing pensions scheme in certain directions, particularly in making the old-age pension applicable to those of statutory age who had had 10 years' residence' in New Zealand. added Mr Savage. This concession would not apply to those who were not already in New Zealand. "In social legislation much more has to be done,'" said Mr Savage, during his speech. "It has to be done as soon as it is possible to do it. New Zealand lags behind in health insurance, but it will not be kent there much longer. Throughout the world social insurance schemes proved their value during the slump, and emerged with added strength. Now is the time for New Zealand to step into line with the other nations. Evidence Collected "It is also the Government's policy to establish the scheme of national superannuation on a sound basis. Before the necessary legislation is nut through the House, full consideration will be given to all interests concerned. We propose to refer the project to a special parliamentary committee, so as to give all persons interested in or r.ssociated with superannuation systems an opportunity to be heard. The committee's proceedings will be open to the press. A lot of evidence has been collected already, and several reports have been submitted. ! "The Government has its own ideas about a practical plan, but in view of the multiplicity of interests involved it has been decided to have the whole information analysed by a parliamentary committee. The exact date for the | beginning of the committee's work is not yet fixed, but it will be necessary to speed up the hearing so that its report can be dealt with to enable the law draftsman to prepare the legislation for the last session of the present Parliament. "No one will suffer through this procedure." said Mr Savage. "In fact, we-are going to liberalise the existing pensions scheme in certain directions, particularly in making the old-age pension applicable to those of statutory age who have had 10 years' residence in New Zealand. This concession, however, will apply only to old people of pension age, who are now in New Zealand, and not to those who later may come into the country. , Many to Benefit

"The proposed alteration to the residential limit will bring considerably • more people under the old-age pensions system, and will give temporary relief to poorer people until the national superannuation system has been brought into operation. "We have learnt lessons from the slump, and we must go forward, not back. The people can rest assured that the Government Will not make the mistakes which marked the economic policy of the diehards and their callous indifference to social conseauences. It is for the people to take their choice. That is an unquestioned right in a democracy. "On the one hand they are confronted with a party which appears to have forgotten nothing and learnt nothing as a result of its disastrous experience during the depression years, and on the other hand the Labour Government guarantees to carry out n diametrically opposite policy. I shall never agree to any policy that will bring back the cruel forms of social injustice which marked the depression years under the former Government," he added.

DECISION WELL RECEIVED

PRIME MINISTER EXPLAINS POSTPONEMENT SESSION LIKELY TO BE CURTAILED IFrom Our Parliamentary Reporter.] WELLINGTON, February 27. There appears to be general approval in parliamentary circles of the course the Prime Minister (the Rt. Hon. M. J. Savage) has decided on in dealing with the national superannuation and health insurance proposals. His announcement at Featherston on Saturday that the legislation covering the schemes would not be passed during the coming session of Parliament—such a situation was forecast in "The Press" on Friday—has caused no great surprise here, for it was generally assumed that such complex proposals would require much wider inquiries than they have so far been given. Of course, the Government has a fairly cut-and-dried plan virtually taken to the stage where it could be described as draft legislation. Discussing the position yesterday, the Prime Minister said that in dealing with such wide social problems as superannuation and health insurance it was necessary to proceed carefully to safeguard the interests of individuals and groups who were already covered by existing schemes. It would be manifestly unfair, he said, if people were iorced into a Government scheme which did not give them benefits equal to those which they were likely to receive as a result of their own private arrangements. Complex Proposal The Government can take over a Reserve Bank and continue its ppertttfon* with changes in policy." Mr

Savage said. "That is a comparatively simple matter, but superannuation and health insurance are far from being simple matters, and when our proposals finally come before Parliament, even though they may be improved as a result of examination , in the House, we want to be certain that they are both equitable and workable."

Up to the present the proposals for national superannuation and health insurance have been investigated by committees consisting solely of Government members of Parliament and departmental officers. However, it is presumed that when the speeial committee mentioned by Mr Savage at Featherston is set up, room will be found in it for Opposition members. It is also thought likely that at least a resume of the investigations and recommendations of the present Government committee Will be made available as a guide for the more I representative body which will take evidence in public. 1 Meanwhile, further details, particularly as they apply to health insurance, are being closely examined by the Government. An indication of this is given by the fact that yesterday the Minister for Health (the Hon. P. Fraser) and the Minister for Finance (the Hon. W. Nash) had a conference with representatives of the British Medical Association lasting about four hours. With the postponement of the Government's most ambitious social legislation, it is expected that the end of the present session of Parliament will be reached in little more than six weeks, particularly as a general revision of the taxing system promised by Mr Nash in his first Budget in 1936 is also likely to be delayed until the final session. Business for Parliament

However, there will still be a fair measure of business to be transacted. Legislation will probably be necessary to ratify the recent trade agreement between New Zealand and Australia. Numerous miscellaneous matters will have to be dealt with in the Finance Bill, and there will probably be amendments to the transport and industrial laws. When Parliament does rise, there can only be a short recess, as there will be a great volume of work fqr the final session before the elections. The Christmas recess has only been an adjournment and there will be no official opening of Parliament. On Tuesday, tributes will be paid to former members of the Legislature who have died recently, and then there will be an adjournment Until Wednesday. Plans for the rest of the session are likely to be discussed at a caucus of the Government Party which has been called for Wednesday morning. Already on the first order paper for this part of the session are the 22 international labour conventions, which will be the first serious business for discussion.