COST OF SOCIAL SECURITY

Press, Volume LXXXVIII, Issue 26813, 19 August 1952, Page 2

COST OF SOCIAL SECURITY

WELLINGTON PROPOSAL FOR .REVIEW (New Zealand Press Association) WELLINGTON, August 18. Concern at the “huge” cost of social security was expressed at a meeting of the Wellington Chamber of Commerce last week by Mr Frank Wilson, who called for an immediate review of the operations of this service, reports the chamber. Mr Wilson said that until there was a realistic appraisal of the position, followed by steps to see that this expenditure was kept within the country’s economic capacity, the prospects of worth-while taxation relief and of a reduction in production c6sts were remote. \ “During the year it is proposed to spend on social services and cost-of-living subsidies the staggering total of £113,400.000, or 53.8 per cent, of the total expenditure derived from taxation and other revenue receipts estimated at £210.000,000.” he said.

“Social service and economic progress are not incompatible, and this must necessitate provision for those people who are unable to provide a reasonable standard of living from their own efforts. But our system in New Zealand' goes further than this to a point where I question if it is reasonable or prudent to continue the distribution in this form of such a heavy percentage of our national income.”

Mr Wilson added that the almost token relief in income tax provided in this year’s Budget was most disappointing in view of the continuing high level of taxation revenue and last year’s substantial surplus in the Public Accounts.