SOCIAL SECURITY SCHEME

Press, Volume LXXXVIII, Issue 26874, 29 October 1952, Page 7

SOCIAL SECURITY SCHEME

EXPERT EXAMINATION URGED

EFFECT OF TAXATION ON DEVELOPMENT

(New Zealand Press Association) AUCKLAND, October 28. “In the interests of the people it is designed to protect, New Zealand’s social security scheme should be thoroughly overhauled by experts—not by politicians,’’ said Mr L. N. Ross, president of the Auckland Chamber of Commerce, in an address today. High taxation, apart from its depressing influence on business, did not permit an adequate proportion of the national income to be ploughed back as capital investments in buildings, machinery, and equipment, he said. Mr Ross said that taxation not only provided the Government with funds but also served the purpose of equalising the distribution of wealth. However, over-all taxation should be kept at a level which did not throw the commercial structure out of balance. Taxation now amounted to about 30 per cent, of .the national income, against 19 per cent, in 1938-39. Capital, manpower, and materials were today far from sufficient to meet demands. New Zealand could not increase production and thereby improve or maintain the standard of living unless it increased technical efficiency. Mr Ross said he strongly supported the view that New Zealand must borrow overseas, and substantially, or development would lag. Since the social security scheme started in 1939, well over £100,000,000 had been transferred from general taxes to meet the deficiency. A commission of experts should therefore be charged with examining and reforming it on a sound actuarial basis.