PARLIAMENT Superannuation Bill Given Second Reading

Press, Volume XCII, Issue 27794, 20 October 1955, Page 14

PARLIAMENT Superannuation Bill Given Second Reading

(From Our Parliamentary Reporter)

WELLINGTON, October 19. General support of the provisions of the Superannuation Amendment Bill was given by the Opposition in the House of Representatives to-night. The only request made by the Leader of the Opposition (Mr Nash) was for more statistical information. The Bill was read a second time. Little interest was taken by members in the debate, and at 9.30 p.m. each party mustered only 12 members in the House.

The Press Association says that when the Minister in charge of the Government Superannuation Fund (Mr E. H. Halstead) moved the second reading he said that the biH was an important prelude to a consolidation of superannuation legislation which it was contemplated would be brought down next year. He said that the measure was a result of considerable study by a special Cabinet committee, which sought to make the scheme more flexible and more attractive for existing and future contributors and to give within the bounds of reasonable cost some further assistance to retired Government employees. The major assistance to be given to superannuitants would be by way of cost-of-living bonus, said the Minister.

Mr A. H. Nordmeyer (Opposition, Island Bay): Where is that in the bill?

Mr Halstead replied that provision for the bonus would be made in the Supplementary Estimates. Mr Halstead said that in the case of retiring allowances the bonus would be £3O a year, and would be paid to superannuitants who received no increase as a result of the adjustments made in 1954 to the minimum Government contributions to retiring allowances. Where the increase granted last year was less than £3O the difference between the increase and £3O would be paid. The bonus would be tapered oft by £1 for each £3 in excess of £6OO, giving no increase to superannuitants drawing more than £690. Widows annuities of less than £lB2 would receive a bonus of £26, that bonus tapering off by £1 SVo. ach £1 of annuity in excess of ilB2, £® l o8 nS n ° increase in annuities

Both these bonuses will be paid to persons retired or widowed before October 1, 1954, and will be paid with effect from December 1 this year ’’ said the Minister. “In a full year the v°w,nnnn theSe^ b S nuses ,. is estimated at £250,000, which will be a direct charge to the Consolidated Fund ” Provision would be made on the Estimates for that expenditure under the vote for the Department of Internal Affairs.

The Leader of the Deposition said he could see no reason why the OpSosrtion should not support the bill, iiscussing details of the measure, he apparent the Miniser was not fully aware of its contents. hitting below the belt. It was uncalled for. I want an apology. <=nS? t i er \S rr what he had said to offend the Minister. Mr Halstead: You said I didn’t know my bill. I know it backwards Mr Nash: I would say an intelligent person would know it forward The Postmaster-General (Mr T. P Shand) said the bill provided a big increase for a small proportion.of pub-

lie servants and moderate increases for the large majority. The Government could not hope to compete with or match outside concerns, but if it did the wage levels would be upset. The Government service, he said, should provide features that would attract men to stay in the service, such as making senior posts more attractive.

The bill represents a real advance m our thinking on Public Service superannuation,” he said. Mr E. J. Keating (Opposition, Hastings), said the bill implemented much that he had advocated as an official of the Post and Telegraph Employees’ Association. Many of the provisions in the bill were necessary because of present-day inflation. However, it did give much more assistance to those public servants in the upper and middle income brackets thaii to those in the lower bracket.

The Minister of Finance (Mr J T Watts) said that the bill would attract into the Public Service young men of good calibre by ensuring them of superannuation conditions that would compare favourably with those of private business. In that way, it would help to keep up the high standard of men in top jobs, which was important for the future of the country. The bill was read a second time.