NEW ZEALANDS LEAD

Press, Volume LXXIV, Issue 22593, 24 December 1938, Page 17

NEW ZEALANDS LEAD

* PRAISE FOR SOCBffl SERVICES REFERENCE IN HOUSE OF COMMONS LABOUR PENSION SCHEME , _____ t raaoM on on cokustokoxstJ LONDON, December 5. New Zealand’s social services were referred to in the House of Commons during the debate on a motion calling for reforms in the present scale of oldage pensions in the United Kingdom. Mr J. Davidson (Labour, Maryhill), in moving the motion, said that in New Zealand they were making adequate provision for old age and Britain should follow their example. “The aggregate income of people in New Zealand has increased by 45 per cent, in two years,” he said, and he declared that Britain should follow New Zealand in improving social services.

Mr Davidson moved: “That as the present scale of pensions is inadequate to provide a reasonable standard of life for the recipients and does not encourage the retirement of elderly workers and as there are anomalies in present law which call for redress, thi» House is of opinion that the necessary reforms should he introduced without delay.” An amendment was moved by Mr Conant (Conservative, Bewdley) to the effect that the House would welcome an extension of pensions when practicable on a sound financial basis, but that at this time an extension would place a heavy burden on industry and would imperil financial stability. The motion was lost and the amendment carried. Mr Davidson said that if the House could, bv passing the resolution, demonstrate that democratic institutions in Britain were capable of protecting and advancing the social conditions of the people, they would indicate to the world that which they had always proclaimed—that democracy could live where dictatorship and totalitarianism must die. The aged pensioners, who were thoroughly dissatisfied with their conditions, and who had protested for many years against the poverty which thqjr had to suffer, were organising in every constituency as they had never done before. They intended to see to it that if the present Government or any other Government would not attend to their demands another Government would be placed in office which would establish a decent standard of living for the pensioners. This was not a question o£ local but of national responsibility. Captain Euan Wallace, Financial Secretary, was more than sympathetic to hopes of a higher rate in the future, but said the present cost of old age pensions was heavy, and its automatic growth formidable. This year’s burden on the Exchquer of £65.000.000. would rise progressively to £113,000.000 in 40 years, while the change in-the age distribution of the population would leave this large increase to be borne by a smaller number of persons in productive employment. Labour wanted pensions of £1 s week for everyone at 60. That would call for £194.000,000 from the Exchequer. Their plan would add £40,000,000 or £50.000,000 to next year’s Budget. Defence was the first essential. Without security every social service must be jeopardised. Any addition to the financial burden endangered stability and prosperity.