“OLD-AGE PENSION ADDITION”

Press, Volume LXXIV, Issue 22371, 7 April 1938, Page 10

“OLD-AGE PENSION ADDITION”

# SUPERANNUATION PLAN COMMENT BY SOCIAL CREDIT SUPPORTERS GOVERNMENT’S TERMS AND PHRASES CRITICISED Condemnation of the Governnational health and superannuation scheme as being “an addition to the old age pension and not superannuation” and of the proposed basis of financing as “a major failure” was expressed by Mr D. C. Davie, president of the Christchurch section of the Douglas Social Credit Movement, , in an interview last evening with “The Press.” The scheme did not provide superannuation, said Mr Davie, and although the movement was opposed to any increase of taxation at any time it was very much against class taxation.” Had the Government agreed to pay 30s a week to every person, regardless of private income, it would have introduced, at least, a ver f important principle. “The Prime Minister has said that the Government will subsidise the Is. in the £ tax by a £ for £ grant. The basis of this payment is, according to Mr Savage, the increased production made possible by the Labour Government and, presumably, by still further increases in productmn, as the natural corollary to new inventions and improvements m machinery. Wg would like to,think that this statement means that the Government will monetise increased production and pass it on to the p3Dple as a benefit —a benefit dition to any we already have. “Real Wealth” Unfortunately, the movement had learned that Mr Savage did not intend to pass on any benefits, asi its members regarded the word. When the Prime Minister spoke of production as being the real wealth, he mean that it • was a satisfactory, basis for more debt and more taxation., Throughout its experiences with the Labour Government, the movement had been met with misunderstandings oyer words and phrases and the so-called superannuation proposals” were a cas„ in point. The proposals were clearly an addition, to the old age pensions end not superannuation. The use of public credit or national credit was another case in which the movement differed with the Government, said Mr Davie. Mr Savage now used the term to mean any money issued from the Reserve .Bank and repayable tc the bank. The DouglaSocial Credit Movement used the term to mean money issued from the Reserve Bank as the property of the public, not required to go back to the bank and to be used as the public’s own property in the repayment of debts owing to private banks Obviously, one lot of money could not pay off two bank debts. It would be admitted by almost everybody that New Zealand could, in the physical sense, provide food, clothing and shelter for all persons 60 years of age without in the least feeling the pinch of the gift. The Labour Party said it knew how to reanse on those physical possibilities; but it was becoming increasingly evident that Vhe party did iwA toow how to realise on physical progress in financial terms. Age of Plenty

“The Labour Party and, especially, Mr Savage, have insisted again and again that we are living in an age of plenty. If that is so, the inability of the Government to- distribute this plenty without increasing taxation and debt must be regarded as a major failure.” . In view of past experiences, they had to assume that the Government subsidy would come .out -of taxation in some form. That being so, Mr Savage’s reference to increased production as the basis of real wealth was irrelevant. If not, the . sooner Mr Savage said so in words that could not possibly be misunderstood, the better it would be for everybody, Mr Savage and the Labour cause included, said Mr Davie.